My breakup helped me triple my first home deposit savings. Here's how

Go to ing.com.au

Saving

My breakup helped me triple my first home deposit savings. Here’s how

Life has a habit of throwing surprises at us, big and small (later, 2020!). A change of job, a change of pace, a change in income, a change in relationship status. These kinds of events can make us ask ourselves: what do I really want (and how am I going to get it)?

We talked to Louise, a millennial who’s had life say to her, “Hey mate, this thing is happening whether you like it or not!” She went through a surprise breakup (ouch!) and responded by shifting her financial (and a bit of her life’s) focus to saving for a house.

Thanks for sharing your story with us. So, what happened to make you focus more intensely on your savings?

A couple of years ago, I was in a long-term relationship and we’d started to save up for our future – specifically, buying a house together in the next couple of years. We were saving and budgeting as a couple, splitting all our expenses – groceries, dinners, drinks, bills – in a really fair and balanced way. I’d even started my first actual, detailed budget that worked for me.

And then… we broke up. It was a real wake-up call for me. I was on my own. I’d been given full custody of my future and my savings, and all those expenses I’d been sharing were loaded onto my shoulders. I now needed to be financially strong and stable on my own.

What did this mean for your savings? Did you have to find a new savings mindset?

Well, it forced me to think about what was going on with my money: what was coming in, what was going out. Paying the rent gave me shelter, going to the gym helped my health, but paying for food deliveries three or four times a week just gave me guilt.

It also made me stop and think about why I was saving up for a home, or even if I wanted to buy one at all, ever. I began to shift my thinking from “I’m saving because I think I want this future with this person?” to “I’m saving because I would love to come home to a lovely place that’s my own”.

Once I understood that, a big part of the shift in how I saved was re-evaluating my income. Simply, if I wanted this home of my own, I needed more money. I love my career and I loved my job, but my salary didn’t cut it. So I found a new job and took on freelance work when I had time so that I could put more towards my deposit and my financial security.

Today, I feel much more in control of my savings. I’ve literally tripled my first home deposit from what I had at the break-up! That feels great. I’ve also organised my bank accounts so I can see exactly where my money is and where it’s going. And I still use the foundations of that first budget I set up when I was with my ex.

Can you tell us how you wrangle your budget and savings?

When my pay comes in each month, I open my budget spreadsheet. In there, I’ve listed all my bank accounts: I call them ‘Everyday’ (for all the daily expenses, including rent), ‘My house’ (an ING Savings Maximiser account purely for my house deposit), ‘Big purchases’ (for one-off things like a new rug or linen set), ‘Holidays’ and ‘Treat yourself’ (for when I want to splurge on clothes and fun times).

I split up my pay by percentage across these accounts. At the moment, I’m putting 20% towards my house and 5% each towards holidays (let’s face it, I’m not going overseas anytime soon), big purchases and treating myself. They’re all ING Savings Maximiser accounts. The leftover 65% I keep in my ING Orange Everyday account for everyday spending, like rent and all my regular expenses. Sometimes I’ll adjust the percentages if I need to pay a car rego payment that month or want to put more away for a long-weekend trip coming up. It’s my budget, so it needs to work for me.

I use the ING app to see all my account totals and all the interest I’ve earnt on my savings accounts. Another thing I’ve turned on is ING’s Everyday round up. Basically, whenever I use my Orange Everyday card to pay for something, it rounds up the amount to the nearest $5 (or you can choose $1) and automatically sends the difference from my Orange Everyday account straight into ‘My house’. So when I buy a $4.50 coffee, I’m putting away an extra 50 cents of my money into savings for my house.

Do you have any advice for someone going through a big change that’s leading them to rethink their approach to saving?

Take the time to pause and think about your savings goals and why you’re setting those goals. They might need to change completely. If you’re saving for a home, is it because you think (like I did) that you’re meant to settle down at some point, or is it that you want the security or joy of owning your first home for yourself?

If you have a clear goal that feels possible, and it matches your values and aligns with what you want in your life, it’s easier to see the steps and decisions you need to make to achieve it.

Soup up your savings game with ING.

Use Orange Everyday as your go-to ING account for everyday banking. It’s got no monthly fees (other fees and charges may apply), so more of your money stays in your pocket.
Savings Maximiser is the yin to your Orange Everyday yang. You can open multiple Savings Maximiser accounts and nickname them to suit your goals – so you’ll clearly see your money going straight into ‘My home deposit’.
Everyday Round Up makes saving automatic. Switch it on and we’ll round up every eligible card purchase you make to the nearest $1 or $5 (your choice!) and then shift that extra amount straight out of your Orange Everyday and into your nominated savings account. You can even use it to pay down your eligible home loan.

Saving

Up next

Successful saving strategies for your dream home

9 min read

Important information
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. All applications for credit are subject to ING’s credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product.

Savings Maximiser
The additional variable rate (that is added to the Savings Maximiser standard variable rate) applies on one nominated Savings Maximiser per customer for the next calendar month when you also hold an Orange Everyday account and in the current calendar month you do the following:

deposit at least $1,000 from an external bank account to any personal ING account in your name (excluding Living Super and Orange One); and
also make at least 5 card purchases^ that are settled (and not at a ‘pending status’) using your ING debit or credit card (excluding ATM withdrawals, balance enquiries, cash advances and EFTPOS cash out only transactions).
ensure that the balance of your nominated Savings Maximiser account at the end of the month (excluding interest) is higher than it was at the end of the previous month.

Each customer can nominate a maximum of one Savings Maximiser account (either single or joint) to receive the additional variable rate (where eligible). You can check and change your nominated Savings Maximiser account via online banking or by calling us on 133 464. If no nomination is made, the additional variable rate (where eligible) will be applied to an account nominated by ING at its sole discretion.

Any amounts above $100,000 are subject to the Savings Maximiser standard variable rate applicable at the time. If you do not satisfy the conditions to receive the additional variable rate, the standard variable rate applies. ING can change or withdraw the additional variable rate at any time. The additional variable rate is not payable in conjunction with any other promotional rate.

^Card purchases includes in store credit or EFTPOS purchases, online purchases, regular card payments, payWave, Apple Pay, and Google Pay transactions made with an Orange Everyday Visa card, Orange One Low Rate or Orange One Rewards Platinum Visa card or Nil Interest Visa card provided with an eligible ING home loan. When using the phrase ‘settled’ card purchases in a calendar month, we mean that the purchases made on your card must be fully processed by the end of the last day of that month. Card purchases made in store or online this current calendar month which are at a ‘pending status’ and do not settle until the next calendar month do not count towards the 5 card purchases needed this current calendar month.

When determining if you are eligible under the offer, we also take into account the behaviour of any of your joint account holders or additional cardholders.

Everyday roundup
Everyday Round Up applies to card purchases using your Orange Everyday bank account. You must opt in to Everyday Round Up and select the round up amount (nearest $1 or $5). When you spend with your Orange Everyday card, we’ll transfer the extra amount from your Orange Everyday to your nominated Savings Maximiser account. A round up will not be debited if doing so would reduce your Orange Everyday balance below $20. Full details at ing.com.au.