Savings Tips | Briana McDonagh

★ The most powerful strategy

Save the difference — and test your mortgage at the same time

This is one of the best things a first home buyer can do. Work out what your future mortgage repayment will be — including rates and insurance on top — then subtract what you currently pay in rent. That difference is what you should be saving every week.

It does two things at once. It builds your deposit faster, and it proves to yourself — and to lenders — that you can genuinely afford the mortgage. When you go to apply, you will have months of evidence showing you can comfortably manage the repayments. It also means the lifestyle adjustment when you move into your own home is minimal, because you are already living on that budget.

Use the repayment calculator to estimate your future mortgage repayments, then add on rates (typically $2,000–$4,000 per year depending on your area) and insurance to get your full weekly housing cost.

Try the repayment calculator →

Get the foundations right

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Set a clear goal

Know your target deposit amount and your timeline. Without a number, saving feels abstract. With a goal, every dollar has a purpose. Use the savings and goal tracker to map out exactly what you need to save each week to get there.

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Automate on payday

Set up an automatic transfer to your savings account on the same day you get paid. If the money moves before you can spend it, you will not miss it. Out of sight, out of mind — consistently.

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Keep savings separate

Put your deposit savings in a completely separate account — ideally one that is not linked to your everyday banking. A notice saver or term deposit can help because withdrawing takes effort, reducing the temptation to dip into it.

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Track your spending

Review the last three months of your bank statements honestly. Most people are surprised by how much goes on things like subscriptions, takeaways, and impulse purchases. Awareness is the first step to change.

Accelerate your savings

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Put windfalls straight into savings

Tax refunds, work bonuses, birthday money, pay rises — every unexpected lump sum is a chance to make a meaningful dent in your target. Before lifestyle creep sets in, transfer it directly to your savings.

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Sell things you do not use

Most people have items sitting at home worth good money — furniture, electronics, clothing, sports gear. Selling these on Trade Me or Facebook Marketplace is a quick way to top up your savings without changing your monthly habits.

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Maximise your KiwiSaver contributions

If you are not already contributing at least 3% and getting the full employer contribution, consider increasing your rate. The more you contribute now, the larger your balance will be when you can withdraw it for your first home.

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Review your regular bills

Power, broadband, phone, insurance — when did you last shop around? A few phone calls or comparison sites can often save $50–$150 per month, which adds up to thousands over a year of saving.

Day to day habits

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Meal plan and cook at home

Food is one of the biggest discretionary expenses for most people. Planning meals, buying in bulk, and cutting back on takeaways and eating out can free up a significant amount each week — without feeling like a massive sacrifice.

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Cut unused subscriptions

Streaming services, gym memberships, apps — go through your bank statements and cancel anything you do not regularly use. These small recurring costs add up quietly over time.

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Small daily costs add up

A daily bought coffee at $6 is over $2,000 per year. That is not to say you can never have a coffee — but being intentional about daily spending habits can make a real difference to your weekly savings rate.

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Enjoy free and low-cost activities

Saving does not mean stopping your life. Look for free events, borrow books from the library, explore local parks and beaches. New Zealand is full of great free experiences — and you will not miss the expensive ones as much as you think.

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Your savings habits affect more than just your deposit. Lenders look closely at your bank statements when assessing your application. Regular savings, consistent payment history, and sensible spending all help build the picture of a reliable borrower. Getting into good habits now means your statements will be working in your favour when the time comes.

Not sure how much you need to save each week? Enter your deposit goal and timeframe — the savings tracker will tell you exactly what you need to put away each week to get there.

Try the savings tracker →

Want to know how close you actually are? Get in touch and I can help you work out your deposit target, factor in your KiwiSaver, and put together a realistic plan to get you there.

Get in touch →

This page is for general information purposes only and does not constitute financial advice. For advice tailored to your situation, get in touch with Briana McDonagh.

Saving tips for your deposit