Updated: Oct 9
The great Australian dream has always been to own a home. However, for many Australians, that scenario is turning into the stuff of fairy tales. But it can still be possible.
If you aspire to one day become a homeowner, financial planning in your 20s is one of the smartest decisions you can make. Start soon (and smart) enough, and your renting days could be behind you earlier than you expect.
Such a scenario is shaping up to be the case for one Melbourne couple. So, if you’re keen to learn how to start saving for a house in your 20s, find out how we helped Sophie and Michael.
Saving for a home deposit - Sophie and Michael’s story
Sophie and Michael, a young couple in their mid-20s, proactively turned to ActOn Wealth for financial advice. Even at a young age, the couple understood the value of wealth-building sooner rather than later to realise their longer-term lifestyle and family goals.
The two were content with renting for the moment. However, they knew that high interest rates could pose challenges in purchasing their dream home. Nonetheless, they were determined to chart a course to this goal, even without specific targets in mind.
How to save for a home - get the best impartial financial advice
Sophie and Michael were keen to explore wealth-creation strategies to leverage their surplus cash flow and current savings. They understood that relying on friends’ opinions and online sources might not yield the best results for their circumstances. Instead, they appointed our expert Melbourne financial planners to provide effective personalised financial management strategies.
Steps to saving money in your 20s
Looking for ideas on how to save in your 20s? Michael and Sophie’s experienced financial advisor addressed these critical steps that you, too, should consider.
The couple wanted a structured budgeting plan that allowed them to maintain their lifestyle while progressing towards their financial goals. They asked for ActOn Wealth’s help in managing their extra money wisely while keeping options open for the future. The objective was to achieve growth and wealth accumulation without sacrificing their current enjoyment, including regular holidays and other experiences.
With surplus funds accumulating in a low-interest savings account, Sophie and Michael were eager to explore investment opportunities that would generate higher returns. They recognised the need for professional guidance to navigate the complexities of investment options.
ActOn Wealth provided personalised investment strategies based on risk tolerance, time horizon, and financial goals. The aim was to achieve growth and build wealth while considering their long-term aspirations once they become more evident.
Sophie and Michael noticed their superannuation balances growing to a reasonably significant amount. They wanted to quality control check their super funds, considering factors such as fees, performance, and investment options. The objective was to maximise their superannuation growth and secure their long-term financial well-being.
Financial planning long-term goals
The couple recognised the value of developing a financial plan that addressed how to save for a home deposit and potentially one day start a family. ActOn Wealth understood their changing goals and created a flexible financial plan to meet their needs. The plan aimed to foster wealth growth while maintaining the freedom to explore and define their long-term goals when the time was right.
Benefits of financial planning
By working with ActOn Wealth, Sophie and Michael gained a structured budgeting plan that allowed them to enjoy their current lifestyle while progressing towards their financial goals. They diversified their investments based on expert advice, harnessing the potential for higher returns and wealth accumulation.
ActOn Wealth ensured the couple’s superannuation funds were optimised for growth and aligned with their long-term objectives. The two had peace of mind that their financial plan accommodated their evolving goals and provided flexibility. They were on the path to growing their wealth while enjoying the present. Furthermore, they could now adapt their financial strategy as long-term goals became clearer.
ActOn Wealth's long-term asset projections helped Sophie and Michael understand how much they could save for a home deposit. The lending team helped the couple understand grants and schemes for different purchase prices and income levels.
This valuable information allowed the pair to make more concrete decisions regarding their home purchase. Previously, they were still determining what was possible. However, with help from the best financial planners in Melbourne, they gained clarity and a realistic understanding of what they could accomplish.
Contact us about how to start saving for a house in your 20s
The best way to save money in your 20s and plan for a home is by contacting ActOn Wealth’s experienced financial advisors.
We approach clients' goals and needs with a bespoke, realistic, affordable plan. Contact us for a no-cost, no-obligation call and see how we can help you save for a home and achieve other financial goals.
By starting this process in your 20s, you give yourself the best possible chance to maximise your wealth and build a solid, stable financial future.