How to Save for a House: 8 Tips

Dreaming of ditching your landlord and getting keys to your own place? Cool — but you’ll probably need a serious savings game plan. 

The good news: saving for a home isn’t about giving up every latte forever. It’s about using smart money moves to stack cash for your down payment, closing costs, and all the random expenses (yes, movers charge extra if they have to climb stairs). 

Let’s break down how to save for a house, minus the boring finance-speak.

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How much do I need to buy a home?

Before diving into how to save up for a house, you’ve got to know your target number. Between the down payment, closing costs, and moving fees, the amount can add up.

The down payment

Typically 3–20% of the home’s price. A $250K home? That’s $7,500–$50,000 upfront.

Closing costs

Fees, taxes, insurance. Expect 2–5% of the home price — think $5K–$12K on a $250K place.

Moving and other expenses

Trucks, furniture, deposits. Budget at least a couple grand so you’re not broke before your first housewarming party.

💡 Learn more about the nuts and bolts of buying with our guides to what a mortgage is, how to buy a house, and how to qualify for a home loan.

8 ways to save for a house

Now that you know how much to save for a house, here’s how to actually do it (and nope, you don’t need billionaire parents or a reality TV deal).

1. Check your budget for ways to save

Start with the basics: review your monthly expenses and redirect extra cash into savings. This is the simplest way to start learning how to save money for a house. Audit your spending like a detective on a Netflix crime doc. Cancel subscriptions you forgot existed, trim takeout, and reroute those dollars into a house fund. 

2. Automate your savings

Set up a recurring transfer to a dedicated savings account right after payday. Making it automatic is one of the most effective tricks for how to save up for a house over time. Out of sight, out of mind — and your house fund grows while you binge TikTok.

3. Save raises and extra cash

Got a bonus, tax refund, or birthday cash from Grandma? Funnel it straight to your house account instead of splurging on that $400 hairdryer. This can be one of the fastest ways to make progress on how to save to buy a house.

4. Increase your income

Side-hustle your way to a bigger down payment. Freelance gigs, tutoring, Uber driving — whatever works. Check out our list of the best side hustle jobs for inspo.

5. Knock out your debt

High-interest debt eats into your savings power. Paying it down frees up more income and improves your mortgage approval odds — both critical for anyone focused on how to save money for a house.

6. Cut major expenses temporarily

Move in with roommates. Pause your annual trip to Cabo. Sell the extra car. Sacrifices now = more freedom later.

7. Choose the right savings account 

Don’t let your house fund sit in a basic checking account earning pennies. Park it in a high-yield savings account so your money works harder.

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8. Take advantage of first-time buyer programs

Federal, state, and local programs can hook you up with down payment assistance or lower loan rates. Using them can reduce how much to save for a house and help you reach the finish line sooner. If you’re figuring out how to save for a house while renting, these programs can be a game-changer — helping you cover costs even if rent eats up a big part of your budget. Check HUD.gov for programs in your area to get started.

Your Home Savings Journey Starts Here

Saving for a house doesn’t mean endless ramen dinners. It’s about being intentional: know your numbers, automate your savings, cut costs that don’t matter, and grab every advantage out there. With consistent effort, your “someday” house could become “moving in next month.”

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