: Experts at Fidelity Investments recommend keeping 3 to 6 months of living expenses in an emergency fund separate from your down payment. 2. Optimize Your Savings Strategy
Determine how much you need by totaling these three "buckets" of cash:
Buying a house requires a clear roadmap for saving, which starts with understanding that you likely don't need the traditional 20% down payment. Most first-time buyers in 2025 put down a median of just . 1. Set Your Target Goal how to save money and buy a house
: Typically 2% to 5% of the loan amount. On a $400,000 home, this could range from $8,000 to $20,000.
How to save for a house or down payment - Fidelity Investments : Experts at Fidelity Investments recommend keeping 3
: Move your fund to a High-Yield Savings Account (HYSA) or Certificates of Deposit (CDs) if your timeline is over a year to maximize interest growth.
: Set up a recurring transfer from your checking to a dedicated house fund on payday to remove the temptation to spend. Most first-time buyers in 2025 put down a median of just
: Redirect the cost of one significant recurring expense—like daily coffee or dining out—directly into your house fund.