5 Sep, 2019
Grow your deposit faster with bonus savings
First Home Buyers Loan,Home Loans Comments Off on Grow Your Deposit Faster With “Bonus Savings”

Bonus Savings is not what Woolworths offers on promotion! Bonus Savings help us achieve our required deposit faster than originally planned. So, what do we consider Bonus Savings? Often, we don’t realise events in our lives where we come across extra money that could be considered unplanned. In essence, any form of additional money that you receive which was not included in your original savings calculations can be considered abnormal and therefore potential for Bonus Savings. Don’t be surprised to consider that during a period of 2 to 5 years associated with saving for a deposit, we inadvertently come across money that is either unplanned or unforeseen.

Bonus Savings can look different to every individual depending on their job, salary structure, overtime, family arrangements etc. For example, a bonus received has the potential to be Bonus Savings if it has not already been included in your saving calculation. Below are some opportunities that you may encounter that fall under the label of Bonus Savings.

Rental Payment Savings – A saving in rental payments due to moving back with parents, or family, or a reduction in rental paid;

Employment Bonus Payment – One-off payment received from the employer which is in addition to your normal earnings;

Pay Increase – Any increase to your original pay at the time of calculating your savings potential. An increase in pay can also be added to the amount of savings each month and deposited to your Invisible Account.

Gift from Parents or Immediate Family – Any money received as a gift from an immediate family member;

The money you Obtain from Selling an Asset Like a Car – If you sell a car, a caravan, a trailer or virtually any other asset, the amount received from this can be added to your Invisible Account;

Any Form of Money Won – Irrespective of how money is won, such money is in addition to normal earnings;

Additional Casual Work – any form of additional work or consultancy undertaken outside of the normal 9 to 5 job;

Rental Income Received from Renting a Room In Your House – creates additional income or “Bonus Savings”

Receipt of Tax Refund – Either a tax refund or any form of special Government one-off subsidy

These are just some examples to illustrate that you must always be on guard and prepared, to identify opportunities for Bonus Savings, as they provide tremendous opportunities to fast-track your deposit.

TIP The sooner you can identify an opportunity for a Bonus Saving, the quicker you should redirect those savings to the Invisible Account before they are absorbed in your cost of living or spent.