Real estate agent goes viral after posting his fool proof three-step plan to saving enough money for a home deposit

  • Melbourne real estate Jared Kirkwood shared his plan to save a home deposit
  • First, open four bank accounts: Erry Day, Bills Away, Rainy Day, Home Someday
  • Next, divide your income into them 40, 20, 15, and 25 per cent respectively 
  • The final step is to live off 60 per cent of your income (Erry day and Bills Away)
  • Mr Kirkwood’s popular videos on TikTok advocating building rather than buying

By Tita Smith For Daily Mail Australia

Published: 02:17 BST, 18 May 2020 | Updated: 03:47 BST, 18 May 2020

A real estate agent has gone viral online after sharing his tips for saving a home deposit in a 15 second TikeTok video. 

Jared Kirkwood, 27, of Sheridon Holmes in Melbourne, posted a dance video on May 8 featuring a three-step plan to set aside enough money to buy a property. 

‘Saving takes sacrifice,’ he captioned the clip. ‘You can do it!’ 

Jared Kirkwood, of Sheridon Holmes in Melbourne, has shared his three-step plan to securing a home deposit online

Jared Kirkwood, of Sheridon Holmes in Melbourne, has shared his three-step plan to securing a home deposit online

In the first step, Mr Kirkwood advises people to open four bank accounts and name them Erry Day, Bills Away, Rainy Day, and Home Someday.

Next, he says to divide your income by putting 40 per cent into Erry Day, 20 per cent into Bills Away, 15 per cent into Rainy Day, and 25 per cent into Home Someday. 

The final step is to adjust and live off the 60 per cent of your income in the Erry Day and Bills Away accounts, while saving 40 per cent for a rainy day and home deposit.  

The video has racked up more than 155,000 likes since it was uploaded earlier this month, but has left commentators divided.

Some fans praised the advice for being more practical than attaining an education. 

‘You are more useful than school,’ one person wrote.

Mr Kirkwood says the first step to save a home deposit is to open four bank accounts

Mr Kirkwood says the first step to save a home deposit is to open four bank accounts

Mr Kirkwood says the first step to save a home deposit is to open four bank accounts 

Mr Kirkwood advises prospective home buyers to split their earnings across the four accounts

Mr Kirkwood advises prospective home buyers to split their earnings across the four accounts

Mr Kirkwood advises prospective home buyers to split their earnings across the four accounts

Another added: ‘learned more from this video than my economics class.’

Others said the steps were not realistic for their budgets. 

‘Yeah bit hard when rent alone is 50 per cent plus bills and food/petrol/ day care/ car rego/warrants/tyres,’ one woman said.

‘Hahaha nope my rent is 75 per cent of my income but nice try,’ another comment read. 

Mr Kirkwood has been regularly posting popular real estate advice on TikTok since April. 

In the videos, the New Homes Advisor recommends building your first home rather than buying a property. 

The Melbourne realtor says people should try to live off 60 per cent of their

The Melbourne realtor says people should try to live off 60 per cent of their

The Melbourne realtor says people should try to live off 60 per cent of their income while saving 40 per cent

Mr Kirkwood explains the price of blocks of land and construction costs can be cheaper than buying a home in the same area.  

This gives prospective buyers the opportunity to design their own home, and their property will be worth more in value when it is complete than the cost of having it built.

First home owners can then use the equity made from building their first home to buy another, increasing their property portfolios. 

Mr Kirkwood’s steps resemble those in step two of best-selling financial guide book The Barefoot Investor. 

In it, author Scott Pape advises people to open four bank accounts, and call them everyday, splurge (short term), smile (long term, such as holidays), and fire extinguisher (a house deposit). 

Income is then divided, with 40 per cent going into savings (splurge ten per cent, smile ten per cent, and fire extinguisher 20 per cent) and 60 per cent used in the everyday account to live and pay bills. 

JARED KIRKWOOD’S THREE-STEP PLAN FOR SAVING A HOME DEPOSIT

Step one

Open four bank accounts and name them:

Every Day

Bills Away

Rainy Day

Home Someday 

Step two 

 Divide your income by percentage into these accounts as follows:

Every Day                     40 per cent

Bills Away                  20 per cent

Rainy Day                   15 per cent

Home Someday       25 per cent

 Step three

Adjust. Live off 60 per cent of your income (Erry Day and Bills Away). Save 40 per cent for a rainy day and home deposit.  

 

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