Sometimes no matter how much you want it or how much you try it's just not possible for
you to save a deposit at this point in time.
So today I want to talk about 10 things you can do if you can't save a house deposit at
the moment.
Believe it or not but there are things that you can do, steps that you can take in order
to move towards your goal of buying a property and achieving financial freedom even if you
can't actually afford to save a deposit right now.
So I've got 10 different things that I want to go through with you today.
The first thing is to invest in something else, property has a very high price tag.
You need a lot of money to enter the property market.
However not all investments are like that for example the share market you can get in
with a lot less money.
To get in the property market even if you're buying a cheaper property you're going to
need tens of thousands of dollars however to get into the property market you can potentially
do it with as little as a $1000 or maybe even less.
So maybe you don't have a deposit and you don't earn enough to save a large amount of
money to have a deposit to buy a house but maybe you could actually invest in something
else and begin growing your wealth in another area then over time eventually as your wealth
increases you might be able to move some of that money over to actually invest in property
and buy the property like you been dreaming of.
The second thing you can do when you can't save a deposit is start learning about property.
I think it was Robert Kiyosaki that said the less you know the more money you need and
the less money you make but the more you know the less money you need and the more you can
make.
Financial knowledge will increase the amount of money that you can make, increase your
return on investment and the smarter you get you'll be able to invest with less money invest
smarter and hopefully grow your portfolio quicker.
So just because you can't save your deposit can't invest in property now doesn't mean
you shouldn't be learning about how to invest in property.
Look at me given my circumstances and the fact that I have changed jobs a few times
and now moved into self-employment I can't actually buy my own property however I learn
about property every single day so when the time does come which I hope will be very soon
I am able to pounce, get into the market and know what I'm doing.
So learn about properties spend some time on your commute listening to a pod cast like
one or reading a blog or pick up a property magazine or pick up a property book.
I recommend Steve McKnight 0 to 130 properties in 3.5 years you can get that by going to
onproperty.com.au/130 and that will redirect you to fishpond which is an online book retailer
and you can get it there but that's a great book that you could listen to or read and
learn more about investing in property so when the time does come you are able to invest
or you might find a way around the fact you can't save a deposit so you can go out there
and invest.
Third thing that you can do is look at ways that you can start making more money, this
might be getting a raise through your employment, might be through changing jobs might be through
a side business might be through a second job might be through any other means there
are so many other means that you can do that and in a future episode I am going to look
at 16 radical ideas of ways that you can save a deposit within 12 months.
Some of those ways we're going to be looking at different ways that you can make more money
so that you can save your deposit faster.
Fourth thing you can do is to look for an investment partner.
So maybe you can't afford to save a deposit and invest yourself but if you potentially
invest with someone else they could put up some of the deposit so you wouldn't need to
save as much or you could organize the situation where you put in the elbow grease, you put
in all the leg work and they provide deposit and you organize a share of the property and
you get a share of the profits even though you might not put a deposit in you might put
in some financial stake by obviously going under mortgage and then also you can put in
your effort and your expertise into getting that property and hopefully that property
goes up in value you can make a profit and then shift to your own investments after that
or you can continue investing with your partner.
The fifth thing that you can look at is purchasing items that retain their value.
So we live in a consumer culture and we can try and fight it as much as possible and it's
very important to budget and spend less than you earn but sometimes a little tweak in what
you spend your money on can actually have a dramatic effect later down the road.
And by buying items that don't lose their value it's going to give you a portfolio of
consumer items over time that you may be able to sell and off-load in order to put towards
a property.
For example 2 years ago well would have been 4 years ago now me and my wife purchased a
Bug-a-boo pram second hand.
Bug-a-boo is a very expensive brand of stroller baby stroller and we purchased it for $600.
We used that for 6 � 9 months and then we sold it and we actually sold it for $625 because
we had purchased it second hand in the first place it didn't lose its value over the time.
The same has happened 6 months ago I bought a fridge for $200 because my big fridge didn't
fit we have now moved house again my big fridge fits and so I'm going to sell that old fridge
and I'll probably get more than $200 for it.
So there's a couple of examples of items that I spent money on that retained their value
because I didn't buy them at retail price I bought them at a wholesale price or bought
them second hand.
So what can you buy and what can you have fun purchasing and using your consumer money
to purchase those items so that they retain their value so that in the near future you
can sell those items and get that money back and use it for investing.
So it's just a way to tweak your consumer habits so you actually build wealth and having
fun spending at the same time.
The sixth thing you can do if you can't save a deposit is simply start by saving 1% of
your income so rather than trying to save a significant amount of savings deposit within
12 months why not just start and save something maybe it's 1% of your income so if you're
earning $5000 a month that would be $50 a month not a significant amount of money or
you could save as little as a $1 a day or 50 cents a day it doesn't really matter the
figure it just matters you start getting into the habit of saving obviously over time you
may find that 1% can actually stretch to 2% and then you can stretch to 3% of your income
then 4% and work your way up.
So rather than trying to save this huge deposit and save a huge amount of money which is unrealistic
for you why not just start the habit of saving with a very small portion of money.
Learn to put it away as soon as you get paid, learn not to touch it and then over time that
will begin to build up and you may find increase motivation to save more and to grow that habit.
So saving 1% or a really small amount in the beginning can be a really effective tool towards
saving your deposit.
Number 7 is to increase your financial knowledge.
So just like we talked about learning about property market it can also be wise to increase
your financial knowledge to learn more about money learn about how money works.
I recommend Robert Kiyosaki's book for this instance the best one I'd recommend is Cash
Flow Quadrant and to check that out you got to onproperty.com.au/cashflowquadrant and
that will redirect you to fishpond again.
This book is awesome because it talked about the different ways people make money.
People make money as an employer, as an employee working dollars for hours, people make money
as self-employed so they own small businesses and do most of the work themselves which is
currently the situation I�m in.
people earn money through businesses so their business run whether they are there or not
and they earn income from that and then people earn income from investments which is like
investing in property.
But learning about the different ways people earn money beginning to increase your financial
intelligence can allow you to see opportunities you wouldn't have seen otherwise.
I remember reading Rich Dad Poor Dad which is another one of Robert Kiyosakis books years
and years ago and it just flip the switch in my mind that I went through all of his
series and he got more than 10 books and I read all of them and even though it didn't
make me a millionaire overnight it made me think about money differently and even now
that I am self-employed and working a lot the business I have created is actually largely
passive so a lot of the work I'm doing now by creating this video is actually growing
my business.
However what I have done in the past is still working for me and generating a passive income
both through Onproperty and other websites that I have as well.
By increasing my financial intelligence I was able to create passive income for myself
without actually investing in property or investing in shares or needing to earn a lot
of money.
And so by increasing your financial intelligence there could be the opportunity for you to
do the same thing.
Number 8 is to consider starting a side business.
A side business can be many different things, it can be starting websites like what I do
it can be mowing other peoples lawns or doing handy man jobs it could be making things to
sell at the local market or you could sell it online through Ebay or gumtree or xc or
something like that.
You could start a side business using one of your skills and potentially make some extra
money on the side.
I guess the goal of this extra money for most of you would actually be to use that money
to save towards your deposit.
So rather than to use that money to do what I do/did and quit your job and go into business
full time you could actually use that money to save a deposit and look that's what I did
for a period of time money I was making from my online business was going and reinvesting
in my online business until it got to the point I was able to make that shift.
So starting a side business you can do in your spare time rather than watching that
next Game of Thrones episode or rather than going to bed super early you could sacrifice
some of that time.
Start a side business start earning a little bit of extra money on the side which you can
use in order to save to your deposit.
Number 9 is to rather than save a deposit why not focus on trying to pay down debt.
Maybe you've got a personal loan, a car loan, credit card debt that is stripping you of
your cash flow every single month so what you could be doing is rather than try saving
a deposit you could focus on paying down that cash flow.
For a lot of people and for me in particular cash flow has been my number 1 goal.
I want to have enough cash flow so I can live the life that I want, ideally that cash flow
comes from property but it might come through other means as well and what happens with
debt is you're paying a certain amount you need to pay on your credit card every month
depending on your debt it could be hundreds of dollars every month that you are using
just to pay down debt.
Well if you invested in property maybe it will earn $100 a month to offset that debt
or maybe you can just pay down that debt and might be easier and you can gain that $100
back in terms of cash flow and lifestyle.
The tenth thing that I think that you should do is if you can't save a deposit right now
is actually start thinking in terms of cash flow rather than in terms of net worth.
Lot of us would look at our net worth and say what do I own, what are my debts and how
does that balance out.
For me I don't have any debts apart from a small credit card bill which I pay off every
single month.
In terms of my net worth if I add up my car my computer all my furniture maybe I don't
know what it would be but I can work that net worth and work that out but that doesn't
really help me achieve what I want to achieve that doesn't help me move towards my financial
goals and financial freedom.
Sure it's great that the bed I bought is worth $500 and the couch is worth $1000 and the
tv that I own is worth a couple hundred dollars but that's not actually moving me towards
my financial goals and financial freedom.
So rather than looking at your net worth why not start looking at your life in terms of
cash flow.
How much passive income you have coming in every month and how much expenses you have
going out every month?
How can you lower those expenses like getting rid of debt or moving to a cheaper car or
moving to a cheaper area, changing your lifestyle in certain ways and then how can you increase
your passive income as well.
The goal is to grow the passive income to the point it is greater than your expenses
so you become financially free.
So rather than thinking in terms of how much is everything I own actually worth that's
not affecting your lifestyle and that's not giving you the lifestyle you want.
So why not start thinking about well what is my cash flow situation what are my expenses
what's my income what's my passive income and how can I focus on a better cash flow
situation in my life because the better your cash flow situation the more likely you'll
be able to save your deposit . So there you have 10 things you can do if
you can't afford to save a house deposit right now.
Maybe it's not your time to save a house deposit maybe it's not feasible for you to save a
house deposit in 12 months.
Well here's some things that you can do to move you towards goals or financial freedom
even though you can't really save a deposit right now.
Sometimes we feel like we can't save a deposit because the goal of the deposit we are saving
is actually too big.
I actually want to help you identify what deposit you really need to save and make that
achievable for you so you can go ahead and save a deposit.
So if you want to get my free checklist to help you analyse how much deposit to save
and get on the road to saving that deposit go to onproperty.com.au/save or simply click
the link below this video and you can go there and get access and download that checklist.
Go ahead and click the link now and get access to that, it's really going to help you move
forward towards saving your next deposit.
So until next time stay positive.