1. Set your target
Your target is the down payment plus closing costs plus a cushion for moving and repairs. Many loans allow much less than 20% down, so check what you actually need before you set the goal.
2. Work out the monthly amount
Divide your target by the number of months until you want to buy. If the number is too high, extend the timeline or lower the price range.
3. Automate it
Set up a transfer to a separate savings account on payday, so the money is gone before you can spend it.
4. Keep it safe
Money you need within a few years should be somewhere safe and easy to reach, such as a high-yield savings account, not in investments that can fall.
5. Squeeze harder
- Run a no-spend month every quarter.
- Cut eating out and shopping.
- Put raises, bonuses and tax refunds straight into the fund.
6. Look for help
First-time buyer programs and down payment assistance can close the gap. Ask lenders, and check your state or local housing agency.
