Tips for Aussie Barbers Saving for a Home

Saving for a house deposit can feel like a hurdle for many Australians, and barbers are no exception. Between juggling barber school loans, salon expenses, and the everyday costs of living, saving a big chunk of cash for a down payment can seem daunting. But fear not, fellow barbers! Here are some tips to help you turn your dream home into a reality.

Budgeting is your best friend:

  • Track your income and expenses – Knowing where your money goes is the first step to saving more. There are plenty of budgeting apps and online tools to help.
  • Be realistic about expenses – Factor in everything from rent and utilities to haircuts for yourself and that occasional smashed avo on toast!
  • Allocate funds for savings – Set a savings goal and schedule regular transfers from your income to your savings account. Even small amounts add up over time.

Explore all loan options:

  • Genuine Savings: A Genuine Savings loan can be a good option for first-time home buyers. With a Genuine Savings loan, the government contributes a bonus to your savings, which can significantly boost your down payment. However, there are eligibility requirements, so be sure to do your research.
  • Guarantor loans: This option involves a friend or family member acting as a guarantor for your loan, essentially vouching for your ability to repay. This can help you secure a loan with a lower down payment, but it’s important to understand the potential risks involved for both you and your guarantor.

Shaving down your barber school debt:

  • Make extra repayments whenever possible – Putting any extra cash towards your loan can significantly reduce the interest you pay and free up more money for your down payment.
  • Look into refinancing options – Refinancing your loan with a lower interest rate can save you money in the long run, allowing you to allocate more towards your down payment savings.

Building a bigger nest egg:

  • Consider a side hustle – The barbering industry often offers flexible work schedules. Use that flexibility to your advantage by taking on a part-time job or freelancing your barbering skills to boost your income.
  • Reduce unnecessary expenses – Take a critical look at your spending habits. Are there subscriptions you can cancel, nights out you can tone down, or that daily coffee you can swap for a home brew? Every little bit saved adds up.

Remember, you’re not alone!

  • Talk to a mortgage broker – A mortgage broker can assess your financial situation and recommend loan options that suit your needs. They can also help you navigate the home buying process.
  • Government assistance – Depending on your circumstances, there may be government programs available to help with your down payment. The National Homeownership and Affordability Scheme (NHAS) is a good place to start your research.

Owning a home is a great aspiration, and with careful planning and a bit of elbow grease, you can make it a reality. So, keep snipping away at your financial goals, and you’ll be celebrating housewarming in no time!