While the prospect of saving up a home deposit can feel like an unsurmountable task, just like climbing a mountain, you really need to take it one step at a time. It might sound like a cliche, but when it comes to accumulating wealth‑every little bit really does help.
If you make the decision to start now – even start small – and work towards building savings then your dream home could be waiting for you on the horizon.
One way of getting on the right track to achieving those homeownership goals is talking with a professional financial planner. The expert team at Landen follows a six-step process when getting to know you and your wealth story. It starts at the discovery stage, where your planner will endeavour to understand your big picture. It then continues on to data gathering, analysis, recommendations, implementation and then staying up-to-date with periodic reviews. If owning a home is your ultimate goal, then Landen’s financial planners will not only set you on the right path but also work with you to execute, evaluate and refine that route over time.
A skilled financial planner will dig deep and ask a number of questions to discover your full potential.
What are your financial goals?
Having a clear financial path in place helps you set a customised plan to help get into your dream home faster. Without defined goals, you can easily get distracted along the way, which will only create hurdles to homeownership. A financial planner can assist you in getting – and staying – on the right track.
Firstly, you need to quantify your objectives, get financially savvy and be comfortable with your timeframe to buy a property. Ask yourself if there are any competing priorities so you (and your planner) can better understand the level of commitment needed to hit your target. Then be realistic with your timeframes and have back up plans in place for life’s unexpected hiccups.
What’s your current situation?
Even before visiting a professional, give yourself a financial check up so you know just where you sit when it comes to money matters. Once your current assets and liabilities are on the table (including super and investments) then it begins to paint a picture for the planner. They will need to understand your cashflow, employment security, budgeting approach and relationship with money. It also helps to look towards the future and examine whether your circumstances are likely to change; from potential inheritances or promotions, to having (more) kids, or additional private school fees.
What are your money shortfalls?
A planner will examine your current financial status and determine any shortfalls you might have by comparing your existing investments with what you’re hoping to achieve. Once that gap is identified then a goal can be drawn up and you’ll have a better idea of how you’ll need to change your current behaviour – if at all.
Do you know your true budget?
It’s a crucial factor, but surprisingly not everyone knows what house hunting budget they really have. A financial planner will analyse what your earnings and expenses are and then determine whether you are being realistic or if you’ll have access to more than expected.
Are you a big spender?
Budgeting can be hard and what constitutes an essential item, is not the same for everyone.
Often it’s the one-off and discretional spending that people underestimate or get caught out by. Tracking tools are a great starting point and there are several helpful budgeting apps out there to monitor spending in real time.
Alternatively, a good rule of thumb is to dedicate a third of your income to your mortgage or rent then another healthy sum should be committed to a savings account that is separate from your everyday spending money. Once you start budget tracking and accumulating savings it can become addictive and finding ways to cut back will become a priority.
How do you plan to stay on track?
Inspiration without execution leads to frustration. To put it simply, a plan without action is just a dream. But if you are serious about turning that dream into a dream home then our team is here to help you achieve your goals with ongoing check ins, updates and re-evaluation.
Getting started is often the hardest part and a great plan needs a beginning, a middle and an end. With commitment and improved discipline, you will be able to break through the status quo that has – until now – kept you from achieving the wealth story you really want, and deserve.
Early and continued check ins with our planners ensure the right amount of momentum is maintained. These periodical reviews also allow us to establish if your circumstances or objectives have changed. We will help you get your strategy in place, and stay with you every step of the way.
To learn more about Landen’s financial planning services, click here.