Homeownership can seem like a financial pipedream for a young graduate or someone that has only been working for a few years. Without family to hand you a lump sum to get started, the prospect of saving up for a home deposit can be daunting. Fortunately, there are ways to fast-track your savings and make your first home a reality. Here are some actionable strategies to help you save for a house deposit quicker.

1. Set a Budget

First things first, you need to know how much you need to save. Generally, a house deposit is around 20% of the property’s value. Although some people like veterans or first-time homebuyers may be eligible for a lower down payment, it is best to aim for the 20% mark to avoid costly lenders mortgage insurance.

Once you know the amount required, determine a budget that will help you achieve your target. This budget should take into consideration all your sources of income and living expenses, including rent, bills, groceries, and any debts that you must service. Use online resources and apps to create a budget and keep track of your spending.

2. Prioritize High-Interest Debt

High-interest debts, such as credit cards, can cripple your ability to save. By paying these off first, you will free up more money each month. Remember, every dollar that is not going to interest is a dollar that can go towards your house deposit.

Another significant expense for many people in their 20s and 30s is student loan debt. Refinancing your student loans can be a game-changer. This process involves taking out a new loan with a better interest rate to pay off your existing loans. The result is lower monthly payments and potentially significant savings over the life of the loan. Take your time to shop around for the best student loan refinancing rates and terms. Also keep in mind that refinancing federal loans may mean losing certain benefits, such as potential loan forgiveness.

3. Automate Your Savings

Automating your savings is a powerful strategy to fast-track your journey toward a house deposit. It essentially involves setting up a regular, automatic transfer from your checking account to a dedicated savings account, effectively treating your savings goal like a very important bill that needs to be paid first.

By “paying yourself first”, you can ensure that a portion of your income goes directly into your house deposit fund without having to save manually. Furthermore, if you choose a high-yield savings account for this purpose, you can benefit from a higher interest rate that will help your money grow faster.

4. Live Below Your Means

This may sound obvious, but small luxury expenses can add up quickly. That daily gourmet coffee, frequent dining out, or premium cable package can amount to significant savings if redirected toward your house deposit. Instead of splurging on non-essential items, try to live below your means by focusing on your needs rather than wants. This does not mean you have to forego all enjoyment or live in total austerity, of course. Instead, just be more mindful of your spending habits.

For instance, you can choose to cook meals at home most days of the week or limit yourself to one night at the bar or club per week instead of two or three. If you are currently renting, you may also want to consider finding a more affordable place to live. This could mean getting a roommate, moving to a less expensive area, or downsizing your space. This approach not only accelerates your savings but also fosters a sustainable relationship with money that will serve you well beyond your initial goal of homeownership.

5. Boost Your Income

While trimming expenses is critical, the potential of increasing your income should not be overlooked. Look for opportunities to advance in your current job, consider side gigs, or even sell unwanted items online. Every extra dollar earned can go straight to your house deposit fund.

You can also consider investing your money to enjoy higher returns than a typical savings account. Low-risk investment options like bonds can be good for beginner investors, while those with more experience can invest in stocks or mutual funds—which pair higher risk with higher earning potential. Talk to a financial advisor so that you can make an informed choice about how to optimize your investment strategy.

6. Take Advantage of Government Programs

Depending on your location, there may be a range of programs designed to help first-time homebuyers. These may include matched savings programs—where for every dollar you save, the government contributes an additional amount; tax-advantaged accounts for deposit savings; or grants and subsidies for eligible first-time buyers.

Do some research to find out which programs are available in your area. At the same time, be sure to understand the terms and conditions of each program to ensure it aligns with your financial situation and homeownership timeline. With careful planning, these programs can be a valuable tool in your house deposit-saving strategy.

Fast-tracking your home deposit may seem like an impossible task at first. But, with the right strategies, it is entirely achievable. With careful planning and smart financial moves like refinancing your student loan, you can significantly accelerate your progress. So start today. Before you know it, you will be holding the keys to your new home!