Hello and welcome to It All Adds Up the podcast where we chat about money, how to get it, how to spend it, and how to invest it. I'm senior economics writer Jess Irvine.

Hello and welcome to It All Adds Up the podcast where we chat about money, how to get it, how to spend it, and how to invest it. I'm senior economics writer Jess Irvine.

And I'm money at it, dumb pal. And this week we're kicking off the first part of our new budgeting series where we're looking at your finances and telling you how you could be saving some extra dollars.

And I'm money at it, dumb pal. And this week we're kicking off the first part of our new budgeting series where we're looking at your finances and telling you how you could be saving some extra dollars.

Thanks to everyone who has already sent us an email at. It all adds up at nine.com.au dot EU showing us your budgets and asking your questions. And it's lovely to see the range of people who are getting in contact. So I hope that by listening to this series there'll be something in this for everyone, no matter what your set up is.

Thanks to everyone who has already sent us an email at. It all adds up at nine.com.au dot EU showing us your budgets and asking your questions. And it's lovely to see the range of people who are getting in contact. So I hope that by listening to this series there'll be something in this for everyone, no matter what your set up is.

Yes. And if you missed last week's episode, that was my sort of grilling, budget grilling. So if you want to listen to someone who really doesn't know what they're doing, you can go back and see that that you.

Yes. And if you missed last week's episode, that was my sort of grilling, budget grilling. So if you want to listen to someone who really doesn't know what they're doing, you can go back and see that that you.

Are not too bad.

Are not too bad.

It was alright in the end, I think. But our first cab off the rank this week is Jules. She's a university student and part time early childhood educator living in Melton, Victoria. And just to set the scene, let's hear a little word from Jules.

It was alright in the end, I think. But our first cab off the rank this week is Jules. She's a university student and part time early childhood educator living in Melton, Victoria. And just to set the scene, let's hear a little word from Jules.

Hi, Jess and Don. This is Jules from Melton. No, I actually dream of Ballarat. I'm a full time university student and part time early childhood educator, and I'm currently saving for my first home. I'm saving at least $410 a month, and I'm hoping to have enough for a deposit or a 2 to 3 bedroom unit or a house in Ballarat. My favourite place within the next 3 to 5 years and while I'm saving, I've moved back in with Mum and Dad. But I was wondering if you had any extra tips or strategies that I could use to be saving a bit more or to help me reach my goal faster. As I said, I dream of Ballarat and I want to make that dream a reality. So I'd love to hear what you think.

Hi, Jess and Don. This is Jules from Melton. No, I actually dream of Ballarat. I'm a full time university student and part time early childhood educator, and I'm currently saving for my first home. I'm saving at least $410 a month, and I'm hoping to have enough for a deposit or a 2 to 3 bedroom unit or a house in Ballarat. My favourite place within the next 3 to 5 years and while I'm saving, I've moved back in with Mum and Dad. But I was wondering if you had any extra tips or strategies that I could use to be saving a bit more or to help me reach my goal faster. As I said, I dream of Ballarat and I want to make that dream a reality. So I'd love to hear what you think.

I love it. I've been through Ballarat on a holiday. I think it's a beautiful little town and I love the jewels that she has settled upon wanting to buy in a regional part of Australia because it's definitely going to be a little bit more affordable compared to to say Melbourne. So I think straight off the bat I think she's doing really well with having a very clear goal in mind of where she wants to live and it not being the most expensive place that there is, although of course it's it's just such a big challenge these days to save up for a first home and just, you know, kudos to Jules for putting the flag in the sand and saying this is, you know what I want. And, you know, so many people are so disconcerted about how unaffordable things are to not even try. So I would love for us to support Jules to be able to achieve that ambition. And I think, you know, over the long term, hopefully with enough modest expectations, it's something that is that can be achievable for people.

I love it. I've been through Ballarat on a holiday. I think it's a beautiful little town and I love the jewels that she has settled upon wanting to buy in a regional part of Australia because it's definitely going to be a little bit more affordable compared to to say Melbourne. So I think straight off the bat I think she's doing really well with having a very clear goal in mind of where she wants to live and it not being the most expensive place that there is, although of course it's it's just such a big challenge these days to save up for a first home and just, you know, kudos to Jules for putting the flag in the sand and saying this is, you know what I want. And, you know, so many people are so disconcerted about how unaffordable things are to not even try. So I would love for us to support Jules to be able to achieve that ambition. And I think, you know, over the long term, hopefully with enough modest expectations, it's something that is that can be achievable for people.

Absolutely. And I think this is sort of a great sort of case study, I suppose, in in showing the sort of things that that people do to save for the houses, like, you know, living with their parents, that sort of thing. Choosing a regional area like these are the ways that that this sort of goal of this sort of seemingly unachievable goal of home ownership is is quite it can become quite achievable. So should we get into it?

Absolutely. And I think this is sort of a great sort of case study, I suppose, in in showing the sort of things that that people do to save for the houses, like, you know, living with their parents, that sort of thing. Choosing a regional area like these are the ways that that this sort of goal of this sort of seemingly unachievable goal of home ownership is is quite it can become quite achievable. So should we get into it?

Yeah. Look, you were crunching some numbers. I immediately just jumped on domain dot com and I was looking at three lovely beautiful 2 to 3 bedroom homes in Ballarat and I want to move there now myself. And I was sort of looking at, you know, of course the quality of the property can vary, but maybe we're looking at sort of a 500 ish thousand dollar purchase price currently for something in that range. And Dom, you were crunching some numbers on what sort of deposit you might need or how long that might take.

Yeah. Look, you were crunching some numbers. I immediately just jumped on domain dot com and I was looking at three lovely beautiful 2 to 3 bedroom homes in Ballarat and I want to move there now myself. And I was sort of looking at, you know, of course the quality of the property can vary, but maybe we're looking at sort of a 500 ish thousand dollar purchase price currently for something in that range. And Dom, you were crunching some numbers on what sort of deposit you might need or how long that might take.

Yeah, So to do a 22% deposit for something, obviously 20% for over 500,000 is 100,000. So that is if you do that 20% mark, obviously you can get a home loan with, with less than, than 20% of a deposit, but you will be paying lender's mortgage insurance which makes your repayments a bit more. But you're looking at about that $100,000 mark. So with the current rate that you're saving, Jules, it's looking like it's going to take quite a while too, to save up to that mark, obviously. But as Jules has mentioned to us, she's currently on a part time salary and expects to be working full time in a year or two. So that will sort of drastically increase the amount that that she's saving. So yeah, and there's there's a lot of things to think about here, I suppose, like you're not necessarily needing that 20%, 20% deposit and perhaps going a little bit a little lower or doing a sort of a first home buyers scheme. That's also something you can look at as well. I mean, my sort of initial thoughts when I saw this is that considering that Jules says that she wants to buy a house in 3 to 5 years, that's a decent timeframe away in terms of that money that that she's saving this $410 a month that she said that she saves. Maybe there's something that she could be doing with that that's not just putting it into a bank account. Like, you know, you could be putting that into a term deposit or something like an ETF or some sort of, you know, other investment like that which would see your money appreciate in a sort of a more significant way than than just to sort of leave it in the bank.

Yeah, So to do a 22% deposit for something, obviously 20% for over 500,000 is 100,000. So that is if you do that 20% mark, obviously you can get a home loan with, with less than, than 20% of a deposit, but you will be paying lender's mortgage insurance which makes your repayments a bit more. But you're looking at about that $100,000 mark. So with the current rate that you're saving, Jules, it's looking like it's going to take quite a while too, to save up to that mark, obviously. But as Jules has mentioned to us, she's currently on a part time salary and expects to be working full time in a year or two. So that will sort of drastically increase the amount that that she's saving. So yeah, and there's there's a lot of things to think about here, I suppose, like you're not necessarily needing that 20%, 20% deposit and perhaps going a little bit a little lower or doing a sort of a first home buyers scheme. That's also something you can look at as well. I mean, my sort of initial thoughts when I saw this is that considering that Jules says that she wants to buy a house in 3 to 5 years, that's a decent timeframe away in terms of that money that that she's saving this $410 a month that she said that she saves. Maybe there's something that she could be doing with that that's not just putting it into a bank account. Like, you know, you could be putting that into a term deposit or something like an ETF or some sort of, you know, other investment like that which would see your money appreciate in a sort of a more significant way than than just to sort of leave it in the bank.

Yeah. Although I mean, I was looking at some online savings accounts because this is like also a radical thing for for younger generations, if I can include myself in that, is that you can actually put money in the bank and earn interest. You know, look, I just Google canstar or finder and best savings accounts, 4% is about the interest rate that you can expect to get on your savings at the moment. And to get that, sometimes you usually have to be making, you know, regular contributions and sometimes you have to be contributing $2,000 a month, which is going to be ambitious. But there's even like one with St George where you just you're popping in $50 per month. If you're over 21, you can earn a bonus total interest rate of 4%, you know, with, with I don't think any fees associated. So you know, I think people if you are sort of looking at that five year horizon, maybe you can be looking at shares and you can ride out some of those fluctuations in values because if you've been trying to save for your first home in shares for the last year, you might be very disappointed because share returns have been very modest, if not negative. So, you know, I'm actually all about putting money in the bank. Don't you know, it's guaranteed if you have under $250,000, you know, you won't lose your money and and you get the interest rates that are on offer and rates are still going up. So and there's a lot of pressure on banks to be passing that on even from here. So maybe four, four and a half, will we see a 5%, you know, savings rate? Hopefully we will. But as you say, term deposits too, could be a good option, although you tend to need to have a big whack to sort of pop in up. For that.

Yeah. Although I mean, I was looking at some online savings accounts because this is like also a radical thing for for younger generations, if I can include myself in that, is that you can actually put money in the bank and earn interest. You know, look, I just Google canstar or finder and best savings accounts, 4% is about the interest rate that you can expect to get on your savings at the moment. And to get that, sometimes you usually have to be making, you know, regular contributions and sometimes you have to be contributing $2,000 a month, which is going to be ambitious. But there's even like one with St George where you just you're popping in $50 per month. If you're over 21, you can earn a bonus total interest rate of 4%, you know, with, with I don't think any fees associated. So you know, I think people if you are sort of looking at that five year horizon, maybe you can be looking at shares and you can ride out some of those fluctuations in values because if you've been trying to save for your first home in shares for the last year, you might be very disappointed because share returns have been very modest, if not negative. So, you know, I'm actually all about putting money in the bank. Don't you know, it's guaranteed if you have under $250,000, you know, you won't lose your money and and you get the interest rates that are on offer and rates are still going up. So and there's a lot of pressure on banks to be passing that on even from here. So maybe four, four and a half, will we see a 5%, you know, savings rate? Hopefully we will. But as you say, term deposits too, could be a good option, although you tend to need to have a big whack to sort of pop in up. For that.

Something else I was thinking about is this that at the first home super saver scheme, which the government has, where you can put additional sort of contributions into your super and then take them out as sort of like a tax free sort of savings for a house and use that that sort of additional money that you put in as a deposit and you get all obviously all the gains of all the, you know, hopefully gains that you would have gotten on your on your super. But you were mentioning just that that might not be so applicable because that some sort of not so much of a tax break when you got a lower income.

Something else I was thinking about is this that at the first home super saver scheme, which the government has, where you can put additional sort of contributions into your super and then take them out as sort of like a tax free sort of savings for a house and use that that sort of additional money that you put in as a deposit and you get all obviously all the gains of all the, you know, hopefully gains that you would have gotten on your on your super. But you were mentioning just that that might not be so applicable because that some sort of not so much of a tax break when you got a lower income.

Yeah, well, contributions to super are taxed at $0.15 in the dollar. So if you are on a lower income and you maybe most of your income is, you know, zero tax, you pay zero tax up to your first $18,000 of income and then you get popped on the 19th century marginal rate. So, you know, it's a saving $0.15 in the dollar versus $0.19. But what I think, you know, when Jules is in that full time position and her annual income is going up, and I think she said she is going to or interested in being a kindergarten teacher. I'm not sure what the salaries are actually for that at the moment. But if you're getting to the point where you're over the threshold for the 32.5% tax rate, then you're popping your money straight into your super and paying $0.15 in the dollar rather than taking it home and having the tax man take 32.5 cents in the dollar can be a great way to turbocharge your savings, and yet you're allowed to pop money into your super account and withdraw it later on. As long as you've checked with your super fund that they will let you do this and actually release the funds to you. You can save up to $50,000 in total split across a number of years and withdraw that to use as your first home deposit. So possibly something worth checking out there or having a Google first home super saver scheme. So we've probably covered off on some ways or places to put Jules's savings once she has diligently accumulated them. And it does look like she is regularly saving, which is fantastic. She did provide us with some of her figures, so she's on a roughly a monthly income take home of of 1950. So as we said, she's studying and so this is a part time income and that's sort of the the base amount that she expects to get from her regular part time job as an early childhood educator. And big shout out to the early childhood educators out there. It's amazing. Absolutely. It's often you should be paid double what you're paid, but thank you for the wonderful work. So of that she's tallied up that she's got monthly bills, probably of about 821 per month. And so she's got that savings she wants to make. And it does look like she is in a bit of a surplus after that. But let's have a look at some of her major costs, because I was wondering if we could save you money. One of the best ways to save money is to reduce your expenditures. We did identify that there's a big monthly direct debit for a phone, her phone plan and the the handset, which is $174 per month, that's already sort of locked in for the next 23 months. But can you talk us through is it is it a good idea to buy the handset and sort of be paying that off monthly or, you know, what's the best way for people to save on a phone plan if they haven't already locked in?

Yeah, well, contributions to super are taxed at $0.15 in the dollar. So if you are on a lower income and you maybe most of your income is, you know, zero tax, you pay zero tax up to your first $18,000 of income and then you get popped on the 19th century marginal rate. So, you know, it's a saving $0.15 in the dollar versus $0.19. But what I think, you know, when Jules is in that full time position and her annual income is going up, and I think she said she is going to or interested in being a kindergarten teacher. I'm not sure what the salaries are actually for that at the moment. But if you're getting to the point where you're over the threshold for the 32.5% tax rate, then you're popping your money straight into your super and paying $0.15 in the dollar rather than taking it home and having the tax man take 32.5 cents in the dollar can be a great way to turbocharge your savings, and yet you're allowed to pop money into your super account and withdraw it later on. As long as you've checked with your super fund that they will let you do this and actually release the funds to you. You can save up to $50,000 in total split across a number of years and withdraw that to use as your first home deposit. So possibly something worth checking out there or having a Google first home super saver scheme. So we've probably covered off on some ways or places to put Jules's savings once she has diligently accumulated them. And it does look like she is regularly saving, which is fantastic. She did provide us with some of her figures, so she's on a roughly a monthly income take home of of 1950. So as we said, she's studying and so this is a part time income and that's sort of the the base amount that she expects to get from her regular part time job as an early childhood educator. And big shout out to the early childhood educators out there. It's amazing. Absolutely. It's often you should be paid double what you're paid, but thank you for the wonderful work. So of that she's tallied up that she's got monthly bills, probably of about 821 per month. And so she's got that savings she wants to make. And it does look like she is in a bit of a surplus after that. But let's have a look at some of her major costs, because I was wondering if we could save you money. One of the best ways to save money is to reduce your expenditures. We did identify that there's a big monthly direct debit for a phone, her phone plan and the the handset, which is $174 per month, that's already sort of locked in for the next 23 months. But can you talk us through is it is it a good idea to buy the handset and sort of be paying that off monthly or, you know, what's the best way for people to save on a phone plan if they haven't already locked in?

Yeah, it's a bit tough once you've already sort of committed to it. But yeah, I mean, I've always been a big believer in the buy a phone outright and go on a prepaid plan. Obviously, buying a phone outright is a significant outlay and this is why these plans exist, because it means you don't have to pay anything upfront, but you end up paying, you know, the full market value of the phone and then some of the sort of 12 to 24 months that you've got onto these plans. So I mean, hundred $74 a month for your phone and handset is is quite a lot of money. But so this is where it's always a good idea to look at sort of second hand phones unlocked, phones, all that sort of stuff. Like that's how you sort of save a bit of money on these on these big direct debits every month because you get prepaid plans like 30 bucks, like 30 bucks a month. That's that's cheap chips. So this is definitely sort of an area, I think that, you know, Jill's if you had your time again, maybe that's something that you could could look at. But obviously that's locked in now. So this there's not a great deal. I also want to talk about the $60 of guinea pig expenditure a month, because Jill's very kindly also send us in some lovely photos of her pet guinea pigs, which I wish we could show you on the pod, but obviously we can't. But it's imagine some very cute guinea pigs.

Yeah, it's a bit tough once you've already sort of committed to it. But yeah, I mean, I've always been a big believer in the buy a phone outright and go on a prepaid plan. Obviously, buying a phone outright is a significant outlay and this is why these plans exist, because it means you don't have to pay anything upfront, but you end up paying, you know, the full market value of the phone and then some of the sort of 12 to 24 months that you've got onto these plans. So I mean, hundred $74 a month for your phone and handset is is quite a lot of money. But so this is where it's always a good idea to look at sort of second hand phones unlocked, phones, all that sort of stuff. Like that's how you sort of save a bit of money on these on these big direct debits every month because you get prepaid plans like 30 bucks, like 30 bucks a month. That's that's cheap chips. So this is definitely sort of an area, I think that, you know, Jill's if you had your time again, maybe that's something that you could could look at. But obviously that's locked in now. So this there's not a great deal. I also want to talk about the $60 of guinea pig expenditure a month, because Jill's very kindly also send us in some lovely photos of her pet guinea pigs, which I wish we could show you on the pod, but obviously we can't. But it's imagine some very cute guinea pigs.

Two beautiful girls called Billie and Zita, and they're very cute guinea pigs. And I didn't know how much guinea pigs cost to feed, but apparently they eat a lot of hay socials and spending about $30 per month on hay. And then they get pellets and also fresh fruit, fruit and vegetables as well, which is adding up to $60 per month, 60.

Two beautiful girls called Billie and Zita, and they're very cute guinea pigs. And I didn't know how much guinea pigs cost to feed, but apparently they eat a lot of hay socials and spending about $30 per month on hay. And then they get pellets and also fresh fruit, fruit and vegetables as well, which is adding up to $60 per month, 60.

Bucks a month. Not that bad. You know, other pets cost a lot more. So, look, 60 I think there's no issue there with the guinea pig expenditure. I just wanted to point it out because it was.

Bucks a month. Not that bad. You know, other pets cost a lot more. So, look, 60 I think there's no issue there with the guinea pig expenditure. I just wanted to point it out because it was.

Just.

Just.

Unusual.

Unusual.

It's so cute. And she's also paying $390 a month aboard. So that's a payment to her parents to sort of cover some of the costs. And so I think that is a great you know, not everyone can live at home completely rent free with the with the parents. So wonderful that she's contributing. And that's, you know, building discipline as well of sort of paying for those housing costs, which will be much higher. Yeah. If she's successful in getting into home ownership, I also see there's there's $12 for Google, a slash YouTube monthly direct debit. So that's the kind of thing you could maybe look at is axing that kind of thing unless, you know, you know, everyone needs a streaming service or two. So, you know, if it's only the $12, that's pretty good. And $30 for the gym per month, which which sounds like a good investment to me.

It's so cute. And she's also paying $390 a month aboard. So that's a payment to her parents to sort of cover some of the costs. And so I think that is a great you know, not everyone can live at home completely rent free with the with the parents. So wonderful that she's contributing. And that's, you know, building discipline as well of sort of paying for those housing costs, which will be much higher. Yeah. If she's successful in getting into home ownership, I also see there's there's $12 for Google, a slash YouTube monthly direct debit. So that's the kind of thing you could maybe look at is axing that kind of thing unless, you know, you know, everyone needs a streaming service or two. So, you know, if it's only the $12, that's pretty good. And $30 for the gym per month, which which sounds like a good investment to me.

That sounds super cheap. I wish I could pay $30 for the gym each month. Yeah. Yeah.

That sounds super cheap. I wish I could pay $30 for the gym each month. Yeah. Yeah.

So there's not you know, there's not it doesn't appear to be a lot of frivolous spending going on. And just to say that she tracks her spending using my worksheet. So that's that's amazing to hear. And just having that visibility, she's going to be seeing it. Any of the unexpected expenses that come up. And I just in general, I was going to caution jewels and just everyone, you know, unexpected things come up in life. And there's a very ambitious savings goal here to get the deposit within the 3 to 5 year time frame. And I just, you know, urge everyone to just just be aware that life happens. And sometimes there is the big expense that's going to come you know, maybe there's no mention of a car. You know, if you moving to Ballarat, you might you're going to probably need a car as well. So there's all sorts of expenses that come up. But I just love the commitment that we're seeing to sort of have start doing the savings. But just being aware that, you know, life does throw things at you. And one of the things Jules is doing is trying to build up an emergency fund, which I think is a fantastic goal, which can just help you cover some of those unforeseen expenses.

So there's not you know, there's not it doesn't appear to be a lot of frivolous spending going on. And just to say that she tracks her spending using my worksheet. So that's that's amazing to hear. And just having that visibility, she's going to be seeing it. Any of the unexpected expenses that come up. And I just in general, I was going to caution jewels and just everyone, you know, unexpected things come up in life. And there's a very ambitious savings goal here to get the deposit within the 3 to 5 year time frame. And I just, you know, urge everyone to just just be aware that life happens. And sometimes there is the big expense that's going to come you know, maybe there's no mention of a car. You know, if you moving to Ballarat, you might you're going to probably need a car as well. So there's all sorts of expenses that come up. But I just love the commitment that we're seeing to sort of have start doing the savings. But just being aware that, you know, life does throw things at you. And one of the things Jules is doing is trying to build up an emergency fund, which I think is a fantastic goal, which can just help you cover some of those unforeseen expenses.

And there's also the $50 a month going in each fortnight to its label, as is Future Jules. But it's Rize, which is the micro investment app, I believe. So it's good to see that. You know, Jules is also sort of, you know, she is doing a bit of investing on the side, which is, I think, a wise thing to do if you can afford it. But, you know, that is also money that that you could just put straight into savings. So that's sort of a decision to make as well. Like you could be putting another hundred bucks a month directly into a house saving. So it's sort of a toss up to think if you're going to get a better return for that hundred dollars every month through micro investing or if you're going to get it through just putting the cash in the bank.

And there's also the $50 a month going in each fortnight to its label, as is Future Jules. But it's Rize, which is the micro investment app, I believe. So it's good to see that. You know, Jules is also sort of, you know, she is doing a bit of investing on the side, which is, I think, a wise thing to do if you can afford it. But, you know, that is also money that that you could just put straight into savings. So that's sort of a decision to make as well. Like you could be putting another hundred bucks a month directly into a house saving. So it's sort of a toss up to think if you're going to get a better return for that hundred dollars every month through micro investing or if you're going to get it through just putting the cash in the bank.

And I would just say to check the monthly fees that apply to some of those micro investing apps and just make sure, you know, add up how much that's going to be over the year. Depends how much you're putting in there as to whether those fees are worth it. So that's just something to to watch out and check for.

And I would just say to check the monthly fees that apply to some of those micro investing apps and just make sure, you know, add up how much that's going to be over the year. Depends how much you're putting in there as to whether those fees are worth it. So that's just something to to watch out and check for.

I mean, all in all, it's great that Jules is tracking your spending in this way. I also think it's great that she has the opportunity to stay at home and live with their parents. You know, not everyone can do that. And it's a great way to save, obviously. And it's a way that so many people say for for that first time deposit. So it's also really good to think about other ways to get into the housing market without having to sort of go for that really onerous 20% deposit. Even in a place like Ballarat where you can get lovely houses for, you know, way cheaper than you get them in Melbourne, you're still looking at a fairly sizable deposit. So I mean just what sort of screams out there and like is there anyone that you can sort of go to to help sort of talk about this sort of stuff with?

I mean, all in all, it's great that Jules is tracking your spending in this way. I also think it's great that she has the opportunity to stay at home and live with their parents. You know, not everyone can do that. And it's a great way to save, obviously. And it's a way that so many people say for for that first time deposit. So it's also really good to think about other ways to get into the housing market without having to sort of go for that really onerous 20% deposit. Even in a place like Ballarat where you can get lovely houses for, you know, way cheaper than you get them in Melbourne, you're still looking at a fairly sizable deposit. So I mean just what sort of screams out there and like is there anyone that you can sort of go to to help sort of talk about this sort of stuff with?

Yeah, Look, I mean, I think for Jules, the priority now is heads down, bums up, get through, study, get into your full time job that's going to really turbocharge what you're going to be able to save when you know, she is hopefully working in that full time job and earning that full time income. I would just encourage you to go to speak to a mortgage broker as soon as you feel like you're really serious about wanting to to say, you know, not you don't wait till you've got your whole deposit, You go and have a chat. Mortgage brokers don't charge you anything upfront, you know, if you then do get a loan through them, there can be commissions that they receive in the background. But you know, mostly they're very open to to helping you, to talking to you, and they can talk you through that. There are various strategies that can enable you to purchase if you don't even have that 20% deposit. The Government has the first home deposit scheme where you only need 5% of the purchase price and there's a limited number of spots available each year under that scheme. But that can be something that you get. The you only put down the 5% the Government sort of agrees to essentially go guarantor so you don't have to pay the lender's mortgage insurance, which can be a large cost. And yet many lenders are actually quite willing to write home loans to people who don't have the 20% deposit anymore. So if that's what's in people's heads to think, I have to wait until I get that. It's not necessarily true. I think once Jules has the regular income coming in and she's got this demonstrated history of of saving regularly, that's going to be more than enough to sort of think that's the time to go and talk to a mortgage broker about, you know, how realistic is this? How long do I need to save for? And I think, you know, mortgage brokers, you know, can can give you a really good steer on what where you might need to. And they even look at your expenses and ask you and sort of say, well, look, that does look high compared to other applicants that I've got and ways to save. So I think, yeah, heads down, bumps up with the savings now for Jules and I think she's doing a great job have having a budget on paper and and really it's just writing down She's estimated her income and expenses and she's tracking a spending that's going to evolve over time. She's going to get a better view of a budget and it's going to change when you start working the full time. And, you know, it's and it changes again when you're a homeowner because there's lots of other costs of home ownership to consider. And it's really cute. She's the 3 to 5 year time frame that she's mentioned is because she would love to move into the dream home in Ballarat while she still has her current guinea pigs. And I'm devastated to learn that guinea pigs don't actually live for much longer than eight years, 5 to 8 years, and they're already two years old. So you know that that is the pressure. That's the dream. As to why I would like to get into the dream Ballarat Palace. She described in an email to us and lived there with the guinea pig. So I think that's a wonderful dream board to have. Life might get a little bit more messy and be a little bit more challenging, but I think with the commitment to making regular savings and finding a good, you know, if it is the online savings account or if it's, you know, another method of saving, just starting to build that. Supplied. That's a fantastic base for building the financial future going forward.

Yeah, Look, I mean, I think for Jules, the priority now is heads down, bums up, get through, study, get into your full time job that's going to really turbocharge what you're going to be able to save when you know, she is hopefully working in that full time job and earning that full time income. I would just encourage you to go to speak to a mortgage broker as soon as you feel like you're really serious about wanting to to say, you know, not you don't wait till you've got your whole deposit, You go and have a chat. Mortgage brokers don't charge you anything upfront, you know, if you then do get a loan through them, there can be commissions that they receive in the background. But you know, mostly they're very open to to helping you, to talking to you, and they can talk you through that. There are various strategies that can enable you to purchase if you don't even have that 20% deposit. The Government has the first home deposit scheme where you only need 5% of the purchase price and there's a limited number of spots available each year under that scheme. But that can be something that you get. The you only put down the 5% the Government sort of agrees to essentially go guarantor so you don't have to pay the lender's mortgage insurance, which can be a large cost. And yet many lenders are actually quite willing to write home loans to people who don't have the 20% deposit anymore. So if that's what's in people's heads to think, I have to wait until I get that. It's not necessarily true. I think once Jules has the regular income coming in and she's got this demonstrated history of of saving regularly, that's going to be more than enough to sort of think that's the time to go and talk to a mortgage broker about, you know, how realistic is this? How long do I need to save for? And I think, you know, mortgage brokers, you know, can can give you a really good steer on what where you might need to. And they even look at your expenses and ask you and sort of say, well, look, that does look high compared to other applicants that I've got and ways to save. So I think, yeah, heads down, bumps up with the savings now for Jules and I think she's doing a great job have having a budget on paper and and really it's just writing down She's estimated her income and expenses and she's tracking a spending that's going to evolve over time. She's going to get a better view of a budget and it's going to change when you start working the full time. And, you know, it's and it changes again when you're a homeowner because there's lots of other costs of home ownership to consider. And it's really cute. She's the 3 to 5 year time frame that she's mentioned is because she would love to move into the dream home in Ballarat while she still has her current guinea pigs. And I'm devastated to learn that guinea pigs don't actually live for much longer than eight years, 5 to 8 years, and they're already two years old. So you know that that is the pressure. That's the dream. As to why I would like to get into the dream Ballarat Palace. She described in an email to us and lived there with the guinea pig. So I think that's a wonderful dream board to have. Life might get a little bit more messy and be a little bit more challenging, but I think with the commitment to making regular savings and finding a good, you know, if it is the online savings account or if it's, you know, another method of saving, just starting to build that. Supplied. That's a fantastic base for building the financial future going forward.

Yeah, absolutely. And look, I think big thanks to Jules for submitting her expenses and letting us have a look and and calling into the podcast, so to speak. We love how we look at it. We love we love giving you our thoughts and we'll be doing it again next week with with someone new and some some new scenarios. So hope you enjoyed hearing all about Jewel and Billy and Zetta and thanks very much for listening.

Yeah, absolutely. And look, I think big thanks to Jules for submitting her expenses and letting us have a look and and calling into the podcast, so to speak. We love how we look at it. We love we love giving you our thoughts and we'll be doing it again next week with with someone new and some some new scenarios. So hope you enjoyed hearing all about Jewel and Billy and Zetta and thanks very much for listening.

Thanks everyone for listening. And yes, do keep the voice memos coming. If you just record it on your iPhone and email it to us that it all adds up at nine dot com today, you and we are listening to those and very much enjoying hearing of our own stories. See you next week. This episode of It All Adds Up was produced by Chee Wong. The information discussed is general in nature and does not take into account your personal financial situation, goals or objectives. You should always do your own research or get professional advice before making any major financial decisions. If you like today's episode, hit follow in your podcast app, leave a review and recommend it to all your friends. You can submit your listener questions in text or audio format at it all adds up at nine dot com you.

Thanks everyone for listening. And yes, do keep the voice memos coming. If you just record it on your iPhone and email it to us that it all adds up at nine dot com today, you and we are listening to those and very much enjoying hearing of our own stories. See you next week. This episode of It All Adds Up was produced by Chee Wong. The information discussed is general in nature and does not take into account your personal financial situation, goals or objectives. You should always do your own research or get professional advice before making any major financial decisions. If you like today's episode, hit follow in your podcast app, leave a review and recommend it to all your friends. You can submit your listener questions in text or audio format at it all adds up at nine dot com you.