Budgeting for a big deposit means borrowing less

BUYING a property has hidden – and not so hidden – costs. One of these costs will probably be paying a deposit.

The bigger the deposit you can pay, the less money you have to borrow

We went in search of some advice on how to get a deposit together.

Financial planner David Crossley suggests you start saving for a deposit by drawing up a budget.

By creating a realistic budget you will be able to build your wealth by avoiding the debt trap, and planning for unforeseen expenses.

Here are his tips for creating a realistic budget. Decide what your expenses are by:

Listing financial commitments. These can include car and insurance payments, rent, food, transport costs and savings.

Listing what you spend money on in order to live, such as clothes, airtime, food and petrol.

Remembering to include entertainment.

Remembering to pay yourself first. Set aside money in your savings accounts or investments. – Marchelle Abrahams, Lifestyle Unit