How to Save Money For Your Home in 2025

Jan 2

Its here!! 2025! You said you were getting those finances in check this year to save money for your new house and thats exactly what we are doing. Some of these things will be uncomfortable and some will sound down right ridiculous because they require you to adjust too far from your norm. But I assure you the only way to get what you’ve never had it is to do what you’ve never done…and stick to it. We keep our word to our job. We keep our word to our friend and family. We keep our word to our significant others and our kids. This year, we are keeping our word to ourselves to achieve the goals we have dreamt about. So let’s dive in on how we are saving money to meet those goals.

Budgeting & Financial Awareness

Track All Spending: Use a budgeting app to monitor your expenses daily. I prefer pencil and paper because I think there’s magic in it. Somehow it makes it stick in my brain. However the best method for you to use is the one you will stick to.
Set a Specific Savings Goal: Determine how much you need for a down payment and set monthly targets. I can help you with finding out how much you need saved. I’m only a phone call/text away 443.468.0757
Automate Savings: Set up an automatic transfer to your savings account on payday. Im not oblivious to life’s financial woes. I know it appears that every time you gain a dollar you have to put three out for something else. But we are being loyal to our needs this year. We are putting our goals first. So set up the automatic saving. If you know you lack discipline in this area, I prefer you to not have a card to this account, nor should you be able to easily transfer money out of it.
Open a High-Yield Savings Account: Earn more on your savings by choosing an account with better interest rates. I like the one that AMEX offers. However do your research here. There are some banks offering 5% interest.
Eliminate Impulse Purchases: Use the 48-hour rule before buying non-essential items. Something about home decor shopping makes me forget all of my responsibilities and priorities. Home decor could financially ruin me if I let it. But we aren’t doing this. We are masters of our mind and finances. If we weren’t, we are now! So no impulsive spending. We think things through and prioritize around here.

Cutting Back on Everyday Expenses

Cook at Home: Cut down on dining out by meal prepping weekly. If you feel you must eat out, try the family meals that a lot of restaurants offer. They tend to run inexpensive and last a couple of days. Perfect for meal prepping.
Cancel Unused Subscriptions: Audit your subscriptions and cancel the ones you don’t need. Also, check the benefits of your credit cards. A lot of them offer free subscriptions if you use that card to sign up.
Shop Smart: Use coupons, cashback apps, and compare prices before making purchases. Do not click naa “ add to cart” button without running it through an app like Rakuten first.
Switch to Generic Brands: Opt for store-brand items over name brands. Now look, I dont play about my food either. I can and will taste the difference in somethings. Some foods, I’m just not switching brands on. I get it. But at least try it to see where your limits are. You may be surprised.
Pack Your Lunch: Skip buying lunch during the workweek, and you can make that coffee at the house or office!

Housing & Utility Savings

Downsize or Find a Roommate: Reduce rent costs temporarily while saving. If you can of course.
Negotiate Bills: Call utility or service providers to negotiate lower rates. Everything cost you one of two things. Time or money. This one will cost you time spent researching to save money. There’s always a better deal somewhere. You just need to be patient and diligent enough to find it.
Conserve Energy: Reduce electricity use by unplugging devices and using energy-efficient appliances. Turning it off is one thing, but unplugging everything possible is where you start to see the diffrence. Call your utility company and have a candid conversation on how they work. My niece recently found out the billed difference in setting your thermostat to one number as opposed to one degree higher just by having such a conversation.
DIY Repairs: Learn basic home or car repairs to avoid service fees. In a world of You Tube, Masterclass, Tik Tok etc., the things we dont know how to do is because we have chosen not to. Learn to do it and save the money of paying someone else.
Shop Around for Insurance: Compare rates for car and renters’ insurance. Again, there’s always a better price. Find it.

Transportation Savings

Carpool or Use Public Transportation: Save on gas and parking. I like taking the subway. Fast and frees up time for me to read or just be.
Maintain Your Car: Keep your vehicle in good condition to avoid costly repairs. What we know for sure is the light does not stop blinking until you fix the issue. Not only does it not stop blinking but at some point it goes to get other lights to blink with it. Now your dashboard looks like the Rockafeller Christmas tree and you need to sell a kidney to get an alternator. Ever needed new brakes and waited…now you need brakes AND rotors. Mmmhmm, because you didnt address it when you should have and costed your self more money that you could have saved. Take care of the issue immediately. It saves money, I promise you. Similarly, paying bills on time saves you money. Data suggest people who run last on a bill for two month are usually late for the remainder of the year at minimum. Late fees may be only $30, but 30 x 12 = $360. Lesson: Procrastination is expensive.
Cut Unnecessary Travel: Combine errands into one trip or limit unnecessary drives. I consciously did this in 2024 and saved a ton of gas and time.

Lifestyle Adjustments

Declutter & Sell Items: Sell items you no longer need on platforms like Facebook Marketplace or Poshmark. One mans trash is another mans treasure…and you’re not wearing it/using it anyway. Sell it. Save the proceeds.
Adopt a "No-Spend Month": Try spending only on necessities for one month. When I do this I like to play a game of moving whatever money I was about to spend on a non essential over to my savings account. Even if spending it was just a thought, I’ll move the money over. I low key become addicted to watching the money grow. Im also always a bit shocked at how much I save by not buying things I really dont need.
Celebrate for Less: Host potlucks or game nights instead of going out. Youve already paid rent. Why not enjoy it while making memories with the people you really love and have fun with.
Skip Luxury Services: Do your own nails, hair, or cleaning whenever possible. Self care is an essential. However paying someone to do your self care is a luxury.

Additional Income Strategies

Freelance or Side Hustle: Pick up part-time work, such as online freelancing or gig jobs. Tik Tok has entire pages dedicated to sharing leads of remote work. Dedicate all income from that hustle to your savings.
Use Tax Refunds Wisely: Put your tax return directly into savings. This is the one time a year you get a lump sum of money (if you are so lucky) so I encourage you to analyze what you’ve done with it in the past. How much money could you have in your account had you saved your last two refunds alone. We’re moving different this year. Save the refund.
Round-Up Savings: Use apps that round up your purchases and save the difference.

These strategies can help you cut unnecessary expenses, boost your savings, and stay disciplined toward buying your new home. You deserve.