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Plan Your Home Savings With Confidence
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🚀 Try the Home Saving Goal CalculatorWhen I first started renting, I thought it would be impossible to save money for a house, but I quickly realized the easiest ways come from cutting back on things like maintenance and property taxes that only homebuying brings. Renting has its pros and cons—with amenities often free, furniture included, and no need for an upfront investment. By focusing on small daily habits, avoiding unnecessary costs, and making smart investment choices, I was able to build consistency and still enjoy a comfortable place to live.
There’s always an argument about whether to rent or buy a home, but for me, the dream of owning meant sticking to a plan. The benefits of building equity, using tax credits, and staying ahead of rising interest rates and high housing prices kept me motivated even when it seemed like an impossible dream. By steadily saving, I turned that reality into something quicker than expected—and I now see how choosing the right path early can truly make homeownership achievable.
Discover How to Save Money for a House While Renting
1. Downsize
One of the best ways to save money for a house while renting is to downsize. Choosing to rent a smaller home or apartment at a lower price means you can keep more aside for buying your own house. From my own experience, shifting into a modest space not only cut down expenses but also made me more focused on my goal.
Living in a smaller home may feel like a step-down, but the upsides of downsizing are huge. You’ll enjoy saving money on rent, reduced utility costs, and spend less time on cleaning. For some, it even means moving back with parents, which is a real option today—around 45% of adults ages 18–29 still live at home with their parents to save money. If you want to buy a home after college, this might be the best way to accomplish your goal quicker.
2. Find a Roommate
Though living alone might feel appealing, having a roommate can cut your rent in half and help you save money for buying a home. By splitting utilities and costs, you gain a strong financial benefit that makes it easier to afford to live in areas with a higher cost of living without stretching your budget too far.
From my own experience, I found that while some associate roommates only with college, many still share expenses later in their lives. Beyond the savings, a roommate can help combat loneliness, but be mindful—choosing wisely is key. Always ask the right questions beforehand to avoid toxic behaviors and ensure your living setup is positive and supportive.
3. Pay Off High-Interest Debt
When I started planning to save money for a house, one of my first priorities was paying off debt. Many Americans face a financial struggle with high-interest loans, so tackling them in a timely way helps reduce the total interest you pay over time. Clearing common types of debt like credit card, auto, student, or even a mortgage can free up cash for your goal.
I noticed that rates on credit debt, especially, have climbed in recent years. The average APR as of August 2025 was 23.99%, that means extra charges can pile up fast. The best way forward is to put any extra money into payment of debts first, before you invest or buy. This strategy builds momentum, keeps margins under control, and makes saving for your dream house more important than ever.
4. Cut Back on Unnecessary Spending
I learned early that cutting down on unnecessary spending is key to saving money to buy a house. Even little things add up, and the faster you stop renting, the sooner you’ll have your own home. Simple choices like home-cooked meals instead of eating out, or having date nights at home watching movies and playing a game, saved me more than I expected.
Making small swaps in everyday life creates a big difference in the long run toward your home-buying dreams. I set a personal goal not to spend on extras until I finally bought my place, and it kept me motivated. Staying consistent in these habits makes the dream achievable.
5. Get a Side Hustle
Getting a side hustle is one of the smartest ways to earn more money. By generating hundreds of extra dollars a month, the average person can boost income through passion projects or more essential business opportunities. With flexibility to work on weekends or after working full-time, you can save faster for buying a house while still renting.
Today, 39% of American adults and 44% of Millennials, Gen Zers rely on hustles. Both younger women and men use them differently, but either way, they open new financial doors, help tackle debt faster, and keep long-term savings goals on track. Popular side hustles include:
- Tutoring or babysitting
- Dog walking or blogging
- Driving as an Uber driver
- Starting a YouTube channel or podcast
- Delivering food or freelancing
6. Open a Savings Account
If you want to save money for a house while renting, opening a savings account is one of the smartest steps. It keeps your deposit safe with security for your principal, and even a modest interest rate grows your balance steadily. A high-yield account makes your goal achievable faster and builds the right habit for home-buying success.
When I compared traditional banks and credit unions, I looked at:
- Best possible rates (some reached 5% in 2025)
- Any fees that could cut into earnings
- Deposit requirement and flexibility of options
By choosing wisely, your money works harder while staying safe.
7. Save Bonuses and Raises
Many employers give an increase in compensation through bonuses and raises to motivate employees, encourage good performance, and keep them satisfied. In the United States, about 33% of companies provide year-end rewards, especially in businesses with around 100 staff. These extra benefits can be a real game-changer if you are renting and want to save money for a house.
When I received extra cash from work during the year, instead of spending it on expenses, I earned more progress by paying down high-interest debt and putting the rest into a high-yield savings account. Directing these funds toward your goal ensures you reach it much sooner, making smart choices with every bonus or raise.
8. Apply For First Time Buyer Assistance Programs
If you are a first-time home buyer, there are special assistance programs that can make buying more affordable. In North Carolina, the Housing Finance Agency helps residents through the Home Advantage Mortgage, which includes a fixed-rate option and down payment help of up to 3% of the loan amount. Eligible properties include single-family houses, townhomes, duplexes, new-construction units, and condominiums.
To qualify, your annual income must be under $134,000, with a credit score of 640 or higher. You can apply with FHA, USDA, VA, or conventional loans through a lender, as long as you occupy the home within 60 days of closing as your primary residence. Extra help like the First Home Advantage program offers up to $15,000 in assistance, especially for veterans and buyers in targeted markets. This support may come as a 0% second mortgage that is fully forgiven after 15 years, making your goal of ownership easier to reach.
As a first-time home buyer, you can benefit from assistance programs like those from the North Carolina Housing Finance Agency. Options such as the First Home Advantage Down Payment provide up to $15,000 with a 0% second mortgage that is fully forgiven after 15 years, helping veterans and those in targeted markets. Plus, the NC Home Advantage Tax Credit lets you save up to $2,000 per year on federal taxes with a mortgage credit certificate, applied alongside your mortgage.
9. Follow a Budget
When saving money for a house, aim for at least 20% of the sale price to cover the down payment, closing costs, and moving expenses. Starting early and setting a clear budget helps you buy a home sooner rather than later, even if it feels like a long time away.
I set a clear savings goal and through hard work, avoided unnecessary spending, and put money aside each paycheck. Over time, I had enough to reach my target, proving that even in just two years, saving for a down payment is not impossible.
10. Sell Stuff You Do Not Use
I started my spring cleaning early and decided to sell stuff I didn’t use anymore. Things like old clothes, furniture, and decorations were just taking up space, so instead of giving away these unused items, I turned them into extra cash to support my home-saving goals.
Hosting a yard sale or creating a listing on Facebook Marketplace is simple and effective. By selling what you already own, you can make real money while freeing up space, proving that small changes can help you move closer to your dream home.
Data & Sources
For this guide, I gathered data and information from trusted sources like the North Carolina Housing Finance Agency, CBS News, Investopedia, Zippia, and CNBC. Using these references, I identified the ten best ways to save for a house while renting, ensuring the advice is both practical and reliable.
Frequently Asked Questions
How much should I save if I want to rent?
If you plan to rent a home or an apartment, it’s wise to focus on saving at least three to four months of rent. This amount is often recommended as a cushion to cover unexpected emergencies or extra costs, giving you peace of mind while managing your housing expenses.
How much money do I realistically need to move out?
When planning to move, it’s ideal to save at least three months of living expenses before leaving. Whether you rent or buy a home, your monthly income should be about three times the amount of your mortgage payment or rent, ensuring you can handle all money needs and unexpected costs with ease.
What age should you start saving for a house?
The right age to start saving for a house is often in your early 20s, especially if you plan to buy later. While there’s no specific rule, the earlier you begin, the faster you can reach your financial goals, making homeownership more realistic.
Key Takeaways on How to Save for a House While Renting
No matter what property type you are saving for, buying a home is an accomplishment and an aspiration for many Americans. Staying alert to rental fraud and scams while shopping around helps protect your efforts, making your journey toward homeownership safer and smarter.
Disclaimer: The information in this article on how to save money for a house while renting is for educational and informational purposes only. It should not be considered financial advice. Interest rates, programs, and savings options mentioned here are based on currently available data and may change with time. Readers are encouraged to verify details with financial institutions or professionals before making decisions.
