The easiest way to save for a down payment on a home, according to a personal finance expert investinyou (In partnership with acorns.)
Those prices can vary widely depending on where you're looking to buy. The median cost of a home in, compared to $1.3 million in San Jose, California, which is currently the highest-priced metro in the U.S.that you won't do it by trying to live super frugally, and even then, it may take some time to build up enough for a down payment, Sethi says.
First, run the numbers to get a realistic sense of what you can afford. Sethi, the author of the best-selling booksays that a 30-year mortgage and household expenses should represent no more than 30% of your income. That includes costs such as taxes and insurance. You'll also need to save up about 20% of the purchase price for the down payment. If you're buying a home that costs $245,000, that means you'll need to have nearly $50,000 saved up., which Sethi says is the best way to save for a big purchase, comes into play. You know that you want to save $50,000. In order to do that, let's say you start by saving $100 a month.
Set up an automatic transfer from your checking to your savings account for $100 each month. Typically, you can even label this account "Dream House," Sethi says. You should schedule the transfer to happen right around when you get paid, so you're not tempted to
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