To save money for buying a house, prioritize budgeting, boost income, reduce discretionary spending, and build a dedicated savings fund. Create a detailed budget to track expenses and allocate funds toward a down payment. Increase earning potential through side jobs, upskilling, or negotiating raises. Minimize non-essential purchases and focus on high-impact savings strategies like automating contributions to a high-yield savings account. Secure a mortgage pre-approval early to understand affordability and avoid derailing finances during the process.

Budgeting and income growth are critical for accelerating savings. According to the National Endowment for Housing, a median down payment requires 12-24 months of savings, depending on location. Boosting take-home pay by even 5% annually can shorten this timeline. For example, a $3,000 monthly budget with a 10% savings rate accumulates $36,000 in a year, sufficient for a 5% down payment on a $720,000 home. The Federal Reserve reports that 64% of U.S. workers earned wage increases in 2023, highlighting income growth potential. Reducing discretionary spending by 15% monthly (as suggested by the Bureau of Labor Statistics) adds $1,800 annually to savings. High-yield savings accounts now offer 4.5-5.5% APY, outpacing traditional accounts, while mortgage pre-approval avoids unnecessary debt from experimentally overbidding. Down payment assistance programs, which cover 2-10% of costs, further reduce out-of-pocket expenses, as 1.2 million families accessed such aid in 2022 (CFPB data). Combining these strategies aligns with Fannie Mae’s finding that buyers with 20% down payments face 30% lower default risks, underscoring financial stability benefits.