- Saving for a home down payment can feel challenging while renting, but small, steady steps can help.
- Budgeting apps and savings tools can make it easier to set goals and build savings over time.
- Reviewing your spending and cutting back where you can may help you save more money for your future home.
- Extra income, like refunds or bonuses, can be a good chance to grow your down payment fund faster.
Apps to Help You Save for a Down Payment
While you’re renting, start saving for your first home with these financial tips and budgeting apps.
Key Takeaways
Until you’re ready to become a first-time homebuyer, renting is a great way to explore different areas. But if you plan to one day buy a place of your own, saving for a home down payment may seem impossible – especially with rent prices rising across the country.¹
Here are four things you can start doing today – with a little help from money-savvy apps and planning tools – to save for a house.
Use apps to help automate your savings
It can be hard to save money when you’re looking at a checking account balance. Instead, try a “hands-off” app that allows you to save without thinking about it.
Not sure how much to target? A down payment calculator can help you estimate a realistic savings goal.³
Financial tools to help you save for a down payment
| Planning tool | How it can help |
|---|---|
| Automated savings app | Moves money regularly so saving becomes part of your routine. |
| Budget tracker | Shows where your money goes each month. |
| Down payment calculator | Helps estimate your home down payment goal. |
Track your spending
Start tracking your spending to know exactly where your money is going. Mint is a free financial tracker that consolidates your accounts, bills and credit cards all in one place. By analyzing your spending history, it can create a customized budget to help you reach your savings goal.⁴
If your goal is saving for house expenses, this step can make it easier to see what you can realistically set aside each month.
Cut extra expenses from your budget
You don’t need to stop going to the gym or swear off eating out to buy a house. If you want to save for down payment costs, comb through your monthly expenses and see which ones you can live without for a while.⁵
After accounting for bills, spending and savings contributions, the app PocketGuard calculates how much money is left for additional spending. The app lets you track specific categories – like groceries or eating out – to see where you might cut back further.⁶ ClarityMoney can help identify subscriptions you may no longer use and cancel them.⁷
Quick tip: Even small cuts can help when you apply that money to a dedicated savings goal each month.
Be mindful with savings from financial windfalls
Extra money can arrive in unexpected ways, with little notice. These might include tax refunds, gifts, bonuses or commissions, and selling personal assets, such as an old car or gently used clothing. Next, go the extra step and put those pennies to work for you. Depending on your financial goals and risk tolerance, you may want to save or invest those extra dollars with an app like Wealthfront, which helps you build a custom investment portfolio.⁸,*
Have you received extra money? Consider putting at least part of it toward your home down payment instead of folding it into everyday spending.
Saving enough for a down payment might seem tough, but you’ll reach your savings goal as a first-time homebuyer faster with a carefully planned budget.
While you’re diligently putting away savings for a down payment, don’t forget to make sure your personal belongings are protected by renters insurance
Preparing for the next step? You may also want to explore our homebuyer checklist, hidden costs to watch out for and how much coverage is right for you.
Get a home insurance quote today
FAQs
The amount depends on the price of the home you want to buy, your ideal monthly mortgage payment and your loan requirements. A down payment calculator can help you estimate a target based on different home prices and percentages.
Many buyers use a mix of automated savings, monthly budgeting and cutting flexible expenses. Consistency is often more important than saving a large amount all at once.
Tracking spending helps you see where your money is going so you can find areas to cut back and redirect funds toward your savings goal.
Key facts about housing affordability in the U.S., Pew Research Center, 2022.
NerdWallet’s 3 Best Money-Saving Apps, NerdWallet, 2021.
Down Payment Calculator, Bankrate. https://www.bankrate.com/mortgages/down-payment-calculator/
6 Apps That’ll Make Saving for Your Down Payment a Little Easier, Apartment Therapy, 2021.
How to save for a down payment, Bankrate, 2022.
The 8 Best Budget Apps for 2022, NerdWallet, 2022.
6 Apps to Help You Trim Down Subscriptions – and Save Money, Wired, 2021.
Best Investment Apps of 2022, The Balance, 2022.
*Not intended as investment advice. Please consult your investment adviser.
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