How do I save a deposit while paying rent?

Short answer: Automate savings on payday. Reduce rent. Cut discretionary spending. Treat KiwiSaver as forced savings.

What this actually means in plain English

Pay yourself first. Set up an automatic transfer to savings on payday. Reduce rent by flatting with others or moving further out. Cut discretionary spending. Use KiwiSaver contributions as forced savings. Every dollar you save is a dollar less you need to borrow.

Key Facts

Automate transfer to savings on payday
Consider flatting to reduce rent
Move further from city center for cheaper rent
KiwiSaver contributions are forced savings
Track spending to find leaks

Example

Income: $4,000/month after tax

Rent: $1,200/month

Automated Savings: $800/month

Kiwi Saver: $200/month

Remaining: $1,800 for bills and spending

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