7 Tips For Saving Up For A Home Down Payment

Craig Knox
May 11
3 min read

Tips & Tricks for Saving Up for a Home Down Payment

Yes, even in today’s market, you can still get a conventional mortgage with as little as 3–5% down. But let’s be real—saving even that amount can feel like climbing a mountain when you're juggling bills, groceries, and everything else life throws at you.

When I started my homebuying journey, I was earning in the mid-$50K range—not exactly rolling in cash. But I still managed to save up a down payment thanks to a few simple tricks that added up fast. Here’s what worked for me (and what might work for you too).

1. Use Acorns to Grow Spare Change

Acorns is a micro-investing platform that rounds up your everyday purchases and invests the difference. Spend $1.24 on coffee? Acorns rounds it up to $2.00 and deposits $0.76 into your investment account.

You can also set up recurring contributions—say $20 every payday—and without much effort, you’ll stash away over $1,000 a year.

💡 Heads up: Acorns processes round-ups and investments in batches, often once a month. Make sure you have funds available, especially if you link a debit card.

Acorns Downsides:

Your money is invested in the stock market, so while there’s potential for growth (5%, 10%, even 15%), there’s also risk of short-term losses. If you’re planning to buy a home in the next year or two, you might prefer safer options like a high-yield savings account.

2. Open a High-Yield Savings Account (HYSA)

Traditional savings accounts barely earn anything. Online banks, though, often offer 4%+ APY—meaning your money works harder for you.

Apple Savings (for iPhone users with Apple Card) automatically deposits your Daily Cash.
Discover, American Express, SoFi, and even Acorns offer competitive high-yield savings.
Many accounts allow automatic transfers—set it and forget it.

💡 Bonus Tip: Some debit cards (like Discover) offer 1% cashback on purchases. Set that cashback to funnel directly into your savings.

3. Earn While You Shop Online: Rakuten & Acorns Earn

If you’re already shopping online, why not earn money back?

Rakuten: Get up to 20% cashback at stores like Macy’s, Lowe’s, and Bath & Body Works. Rakuten sends out payments quarterly once you hit $5.
Acorns Earn: Partnered merchants deposit cashback into your Acorns investment account (typically within 30–60 days).

Both offer browser extensions or mobile apps. With Rakuten, you can even link physical cards for in-store purchases.

4. Automate Your Payday Deposits

Set up automatic transfers—either to Acorns, a HYSA, or both—every payday. Even $20 every two weeks becomes $520 a year. Add cashback, round-ups, and interest, and suddenly, you’re building real momentum.

5. Take Advantage of Windfalls

Tax refund? Work bonus? Stimulus check? Instead of letting it get swallowed by day-to-day expenses, stash it in your down payment fund. One big chunk can speed up your timeline dramatically.

6. Cut Subscriptions & Reallocate

Do a quick audit of monthly subscriptions. If you're not using that $15 streaming service or $40 meal kit, cancel it and redirect that money into savings. You won’t miss what you weren’t using—but your future home will thank you.

7. Live Like You Already Have a Mortgage

If you’re renting for $1,000 but expect your mortgage to be $1,400, try living on the higher amount now. Put the extra $400 into savings each month. Not only will this build your down payment faster, but it also preps your budget for homeownership.

Conclusion: Start Small, Think Big

Saving is hard—but being intentional makes it doable. Automate what you can. Set it and forget it. Choose tools that grow your money with minimal effort. And if you’re shopping online anyway (let’s be honest, we all are), don’t leave free money on the table.

Start with what you can. Stay consistent. Your future home is closer than you think.