Conjure up those deposit dollars Conjure up extra dollars for your deposit using a few simple tricks. Picture: Bob Barker Source: The Daily Telegraph Use the magic of compound interest Always pay yourself first Cut up those credit cards WOULDN'T it be brilliant if, like magicians, we could conjure up the thousands of dollars needed for a home deposit? Well, hold onto your black shiny top hat, because today's column will unveil a few tricks that show you don't need to be David Copperfield to create that elusive cash. You will, however, need patience and some skills in juggling. Quick fact: magicians were originally called jugglers. Trick one is the magic of compound interest. It's often described as the eighth wonder of the world, albeit mostly by finance nerds, but compound interest really is a powerful tool to grow wealth. And it's free. Search for "compound interest calculator" online and you'll find lots of them, including at moneysmart.gov.au. Compound interest, put simply, is earning interest on your interest on your interest. For example, someone who starts with $1000 and saves $10 a day a bought lunch and a takeaway coffee for many people will have $22,500 in five years based on 6 per cent interest. After 10 years it grows to $51,000. Trick number two is to pay yourself first. This doesn't mean splurging on a big weekend after every payday. It means moving money away from your bank account and into a separate savings account or investment before you have time to spend it. It's human nature to spend what we see in our cash account, so put your money out of sight. That way it will be out of mind, and you may be surprised by how quickly it grows. The third trick is another disappearing act, but this time it's credit cards and store cards. They're evil little critters if you give them an opportunity, so hide them. Cutting up the credit card may be too brutal for many, particularly if it's attached to a handy rewards program, but the best way to save money is to stop spending it. That may mean reducing card limits, and leaving them in a drawer at home rather than in your purse or wallet every day. Juggling your household budget can trick you into saving a deposit. Like all magic tricks, it takes time, patience and some skill, but you won't need to defy David Copperfield's Death Saw to get some impressive results.