CHAPTER 2 HOW TO SAVE: Finance is not a dirty word

      Your family may not have talked much about money, right?

      Most of us certainly didn't learn much about it in school, which is thankfully changing, so that the next generation will be more clued up about money management than most of us ever were.

      Talking about finance became a dirty word at some point in history, it seems. It likely had something to do with the long‐held power imbalances in relationships, such as the fact that most women stayed home and looked after the children once they were born. Many never went back to work again because of lack of opportunity or, ahem, permission.

      The 1960s and 1970s started to change all that, with women heading back into the workforce in record numbers.

      When we think about the hundreds of years of mainly men making all the money, then, women really haven't had long in the grand old scheme of things to learn how to make the most of theirs, have they?

One of our motivations is to help change that, so that women of any age can understand how to take charge of their own financial futures — whether they decide to partner up with a man or a woman, or not at all.

      We think that improving financial literacy can only be positive for society and if we can help more women become financially independent by way of strategic property investment, then our time on this earth will have been used wisely.

      We're not going to instruct you on what is the best way to invest in property, because it will be different for each and every woman.

      Each of us has different hopes, dreams, and aspirations, financial or otherwise, don't we? We are all individuals who have diverse careers, incomes and responsibilities. Some of us have children and others do not. A number of us will get married in our 20s, others in our 40s, and some of us not at all.

      You can see where we are going with this, can't you? Your property investment journey should be tailored and unique to you personally as well as your phase of life, and your wealth creation and retirement goals. Anyone who tells you otherwise should be given a wide berth.

      Our hope is that you understand all of the ins and outs of property investment so you can make your own informed decision on what is the best path for you. Never again will a woman be hoodwinked by a spruiker if we have our way!

      The first step for many women is deciding to prioritise their own financial future. The second is to save that first deposit which — we're not going to lie — has always been bloody hard.

SAVING A DEPOSIT

      Most of us don't have a Great‐Aunt Mildred who conveniently dies and leaves us a wad of cash to buy our first property with, do we?

      In fact, we hope that more women will learn how to rely on their own endeavours to improve their financial lot in life, rather than banking on an obscure elderly relative, a long‐lost cousin, or their future, or current, partner.

      But let's get down to business.

      Property prices generally only go one way over the decades — and that is up. It can seem impossible to ever save fast enough to keep pace with rising prices, which is one reason why so many women give up at the first hurdle.

      But there are ways and means to help you save that first deposit, including the fact that it doesn't have to be the mythical 20 per cent of the purchase price that many people think it does — although that is always advisable. You do need to show genuine savings to lenders.

      Saving funds for a deposit is a great exercise in budgeting and money management that will hold you in good stead for the rest of your days.

5 SIMPLE STEPS TO SAVE A DEPOSIT

      Here are some simple steps you can take to help you reach and clear that first savings hurdle.

       1. CUT BACK — BUT DON'T FORGET TO LIVE

      Most of us have higher discretionary spending than we realise — especially with the ease of online ordering of everything from clothes to food to wine. Saving a deposit takes discipline, delayed gratification and plenty of patience, which means you may need to cut back on some of the things you like to enjoy the most for a while.

      Perhaps, instead of meeting up with friends for drinks and dinner at a restaurant, you take turns to host at each other homes instead? Maybe save ordering from a food delivery service for a Friday‐night treat, so that you can celebrate the end of the week as well as the extra money in your bank account?

      Working with a finance professional may be an idea to calculate how much of your income can be diverted to savings. You might be surprised with the result.

       2. FROM LITTLE THINGS, BIG THINGS GROW

      Set aside a certain amount from your salary or wages every time you are paid — and we mean on the day that it hits your bank account! Ideally, you should automate this so that you don't even notice it leaving your account and you don't have the chance to spend it.

      You may need some expert advice, including on creating a budget, to help you determine what is a realistic amount that you can save. The last thing you want to do is try to save too much and leave yourself short when bills arrive, or it all gets too hard and you simply give up.

       3. OUT OF SIGHT, OUT OF MIND

Online banking means it's easier than ever before to park those savings in a separate bank account. Now,