Buying and owning a house is a huge desire for many South Africans, but the prospect of being able to do so in your 20s or 30s may seem like a pipe dream.  High property prices, a difficult economic landscape and possibly even the restraints of lingering debts (such as student loans) may leave you feeling that owning property is simply unattainable. 

However, one way to ensure that you make achievable steps towards your future home is to start saving for a deposit. While it’s not required for potential buyers to have a deposit to purchase a property (in some cases it is possible to get a full home loan), it certainly helps to offset the enormous cost of buying property; the less you borrow from the bank, the less your monthly repayments will be and the less your overall cost of the house will be. By saving a substantial deposit, you also show banks that you're self-disciplined enough to put money away and probably have sound financial habits. This gives banks more reason to trust you with a home loan.

Here are some of our top tips on how to save for a deposit on your future home:

Set yourself a goal
As with most things in life, saving for a deposit on a house is easier when you break it up into manageable steps and when you set yourself a realistic goal - ‘realistic’ being the operative word. Ideally, you would want to have 10 to 12% of your dream property value set aside as the deposit, which is paid upfront. So, sit down and think about how much you want to save for your deposit and then take a hard look at your finances; where can you afford to cut down? How can you save more and in which areas of your life might you be overspending?

Make saving for a house your number one priority, and you’ll soon find it easy to cut down on things like eating out and splurging on new clothes. Use the idea of your dream house as motivation whenever you feel the urge to spend. Weigh up what is more important to you, a luxury purchase or your future abode? Once you have decided where you can save and cut back, prepare a new budget and stick to it by making sure that you put your savings away the minute your paycheck clears your bank account.

Track your spending
One of the best ways to make sure that you’re keeping to your budget and not overspending frivolously is to track your spending. While setting up a spreadsheet to do this is great, it’s also largely impractical and often can result in certain purchases being forgotten and falling through the cracks.

Rather embrace the technological age we live in and opt for a budgeting or financial education programme such as Old Mutual Moneyversity+. Designed to help you empower yourself with knowledge and skills when it comes to your money, it is packed with fun videos, engaging articles, podcasts, games, calculators, interactive courses and downloadable content. 

Cut costs
One of the most effective ways to save for a house deposit is to reduce excessive spending. By cutting back on non-essential expenses, you can free up more money to put toward your savings goal. If you’re unsure where to start, begin by reviewing your current spending habits and identifying areas where you can make adjustments. For example, reassessing major costs like rent or smaller everyday expenses can reveal opportunities to save more each month.

Become a bargain hunter
There’s no doubt that “every little bit adds up” over time. Do what you can to buy what you need to but at the best possible prices. You can aim to plan your meals around items at the store that were on special, join loyalty programmes and sign up for email lists that notify you of sales-saving on the necessities means you can lower your expenses and save more for the deposit on your future home.

Put your savings in a seperate account
One of the best things you can do when saving for a deposit on your future house is to create a separate savings account for it. This way, you don’t risk tapping into the money you would like saved for a deposit. Not only that, but it will help you boost your saving efforts by earning good interest in the long run. Open a fixed deposit account or a savings account that yields high interest. If you put these savings into an account from which you could draw money at any time, this could also double as an emergency fund if you don’t already have one.

Keep your eye on the goal
The bottom line when it comes to saving for a deposit on your future house is that it’s not easy. It’s going to require a lot of patience and self-discipline, and it’s crucial to keep your eye on the prize.