How to Save for a Deposit

You're tired of renting and have decided to buy your own property - but the bank wants 20% upfront. What do you do?

Here are some tips to help you start saving:

Track your expenses. Write down every rand you spend (or find handy software online). This will give you an accurate picture of where your money goes every month, help you avoid unnecessary expenses and identify ways to cut down on existing ones.

Compile a budget. Try to keep it simple, as this will improve your chances of successfully sticking to your budget. Set a fixed amount you can spend on things like food, airtime, clothes and socialising per week - and then stick to these amounts.

Always ensure your tax affairs are in order - not only will you save on fines, but you will often get money back when overpaying tax during the course of the year.

Save regularly. Get into the habit of putting away money every month, even if it is only small amounts. Find the best interest deal, and do not touch this money - no matter how big the temptation. If you have little discipline when it comes to money, put it in a fixed-term account, but watch out for accounts that carry penalties for withdrawals or where the monthly bank charges will be higher than the interest you earn.

Clean out the clutter. If you haven't touched your bicycle or fancy guitar in three years, it may be time to get rid of it. Sell unwanted items on Gumtree and put the money in your savings account.

Get an extra job. If there is no prospect of a decent pay rise or a new, better-paying job elsewhere, start looking for additional part-time work you can do over the weekend or after hours. This can do wonders for your savings plan, but ensure that the extra work will not interfere or cause a conflict of interest with your current job.

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