Michelle’s quick note: Today I’m sharing an excellent guest post on how to save money from Rachael, a longtime reader of Making Sense of Cents. Rachael bought her first investment property at 20 by saving a 20% deposit entirely on her own—no family help. Below is her story and practical tips. Enjoy!
I bought my first investment property with a 20% deposit when I was 20 years old (I was two weeks shy of turning 21). I saved that deposit with my own earnings—my parents didn’t contribute a cent. Here’s how I did it and the habits that helped me reach that goal.
1. I started working as soon as I was old enough. I began at 15 as a checkout attendant at Woolworths. It wasn’t glamorous, but I earned money. During the last two years of high school I worked about 10 hours a week and around 20 hours a week during school holidays. I stayed there for three and a half years and saved a substantial portion of what I earned.
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2. While working during high school, I rarely said no to shifts—only if I was sick or had an exam the next day. Even when I didn’t want to go, I did, because I had a goal. Often I’d finish school, change into my uniform, work until late, then study until midnight. Balancing work and study taught me strict time management and left little room for procrastination.
3. A major income boost came from starting an Etsy shop. I had been designing printable organizers and opened a shop to fund a trip to the USA. The shop paid for most of the trip, and when I returned I found many customers wanted the shop to stay open. Sales grew even though I wasn’t constantly creating new items. Eventually the Etsy shop became a business and started earning more than my checkout job.
By the third year of university I had a job in my field. For a time I juggled scanning groceries 10 hours a week, a 25-hour-a-week day job, two Etsy shops, a blog, and maintaining a high GPA. The income wasn’t given to me—it was earned. I burned out and quit the checkout job, then looked for other ways to replace that income.
My biggest saving tip: don’t raise your standard of living when your income increases. Maintain disciplined spending and channel extra income toward goals like a deposit.
Besides starting an online business, I used many other strategies to save:
4. I didn’t own a car. After doing the math, it was cheaper and more convenient for me to pay higher rent to live closer to the city and use public transport. I shared an apartment with my sister so bills were split; living with a roommate significantly reduced my housing costs.
5. I bought essentials when they were on sale and stocked up. I only bought what I needed, and kept a list so sales didn’t turn into impulse purchases.
6. I brought lunch to work. Many colleagues spent money on daily coffee and snacks and wondered why they ran out of cash by the end of the month. Bringing lunch is an easy, consistent saver and helped me avoid living paycheck to paycheck.
7. Most of my savings were placed in term deposits. This prevented me from spending the money and earned higher interest than an everyday account. When a term deposit expired and I still needed more, I used introductory bonus rates by opening new savings accounts periodically.
8. I tracked every dollar. Using budget binder printables, I recorded all spending and business income and expenses. This level of accountability kept me focused on the goal.
9. I set strict price limits for clothing and stuck to them ($20 for shirts, $40 for shorts, remembering clothing costs in Australia). If something I liked was on sale, I bought multiples. I maintained a casual “around the house” wardrobe of inexpensive items for comfort while working from home.
10. I used credit cards strategically. When used responsibly—paying the balance in full and not buying things I couldn’t afford—credit cards provide convenience, rewards points, and signup bonuses. I kept money in savings longer by making purchases on my credit card and scheduled transfers to avoid late fees.
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11. I kept the lowest phone plan with minimal data and used free Wi‑Fi whenever possible. For directions I’d pre-load maps or take screenshots to avoid data usage.
12. I traveled off-peak when possible. If I traveled during busy times, I shared costs with others so accommodation and transfers were cheaper.
13. I comparison-shopped everything. From groceries to electronics, I checked catalogues and price-match policies so I always paid the lowest reasonable price.
14. Before any purchase I asked: “Do I really need this?” I’m a stationery lover, so resisting cute notebooks and pens was hard, but if it wasn’t necessary I didn’t buy it.
15. I used ATMs that didn’t charge transaction fees and checked which banks had fee-free partnerships to avoid unnecessary costs on withdrawals.
16. I avoided convenience stores. Prices are much higher there, and buying on impulse at work or while out can quickly erode earnings.
17. I never ordered dessert at restaurants. Paying $12 for a single dessert felt wasteful when I could buy several tubs of ice cream for the same price.
18. I avoided scratchies, lottery tickets, and workplace sweepstakes. I believe in creating my own luck through hard work and smart choices.
19. I socialized more cheaply—meeting friends for lunch or afternoon tea instead of dinner to keep costs down.
20. I exercised by walking around my neighborhood rather than paying for an expensive gym membership.
Related: The Busy Person’s Guide On How To Be Healthy
The 20% deposit on my first investment property
Overall, it took me about five years to save the deposit. It wasn’t easy. Training myself to say no and distinguishing needs from wants was challenging. I continued to track every dollar using my budget binder printables, which I still use today.
Would I buy a property at 20 again? There are moments I’ve wondered if I chose the right path—travel and spontaneous experiences would have been more plentiful without mortgage and property costs like management fees and maintenance. I sometimes envy friends who spend freely on concerts or holidays. Not owning a car means I rely on friends for lifts sometimes, which can be awkward even though I help with fuel costs.
That said, when I feel down about how much I’ve paid in mortgage interest, I remind myself that I’m on track to pay off my mortgage by 30. That long-term progress makes the sacrifices feel worthwhile.
What strategies have you used to save a large amount of money, such as a deposit?