Jacob and Connor thought home ownership would never happen. They made good money, but it never seemed to accumulate into a pile big enough for a down payment. Then with a simple three-step plan to save $30,000 in one year, that all changed.
The word “down payment” has always given me a tinge of fear when I hear it. It’s not that I don’t want to own a home—I do! It’s the seemingly insurmountable amount of money I’d need to save before homeownership feels realistic. I would put off saving because, well, how will I ever get there? And how much money would I even need?
(I’m no financial expert, but it seemed like it would be A LOT of money?)
If this sounds familiar, I’ve got good news: you don’t have to be afraid, and you don’t have to put off saving any longer. A year ago, my partner and I had $0 saved for a down payment. I’d basically written off the idea of owning a home altogether. I had consigned myself to a life of renting, forever at the whim of a property manager and their thermostat. Today, we’ve saved $30,000 in one year for a down payment, and we’re steadily saving more each month—without compromising our lifestyle or taking on credit card debt.
We Saved $30,000 in One Year
Homeownership feels more within reach than ever. The best part? We didn’t do anything extreme. We just made intentional financial decisions, worked the YNAB Method, and took control of our personal finance priorities.
The Secret? Use YNAB to Save Money
How did we save $30,000 in one year? First and foremost: we gave every dollar a job using YNAB. That shift alone helped us stay focused on our financial goals and avoid spending money on non-essential items.
Our Three-Step Plan to Save $30,000
- Make saving for a down payment the top priority. We gave it its own savings category in our YNAB plan.
- Funnel every bit of extra money toward it. Bonuses, income tax returns, and leftover funds after paying monthly expenses all went straight into our savings plan.
- Give yourself more fun money. Yes, you read that right. This made our plan sustainable—we stopped feeling deprived and started enjoying the process.
1. The Down Payment Was Our Top Priority
Step 1: The Down Payment Was Our Priority
In early 2019, we had a lot of spending categories pulling us in different directions: tech upgrades, travel, dining out. We sat down and got honest about our priorities. Once we decided that saving for a home was the top priority, we did two main things:
We prioritized more money toward our house. In YNAB, we gave a bunch of our dollars new jobs.
The old jobs they had weren’t priorities for us anymore, so we took them out of their old categories and moved them to the house down payment category (picture the money moving from one virtual envelope to the other). That expensive gaming computer? Turns out I don’t want it that bad. New furniture? Maybe the house should come first.
Define your priorities and your life will follow.
By reallocating money we already had, we were able to set aside a few thousand dollars immediately. That felt awesome, and it was a huge boost to our momentum right off the bat.
We went through every category and adjusted our goals.
Our income is predictable and we know exactly how much is coming in each month (we both work and have good jobs). Our plan: allocate less money for things like clothing, home goods, and technology, then hike up the goal for our house downpayment category. We ended up with a really healthy savings goal—we aimed to set aside $2,000 every month for our house down payment.
This was all reflected in our category for a house down payment, but you could also open a high-yield savings account to hold your down payment fund, taking advantage of a better interest rate than a checking account could offer.
2. Save the Windfalls
Every time we received unexpected income—a gift, a raise, a tax refund—we put at least 90% of it into our savings. It felt amazing to see our down payment category grow faster with those lump sums. Those oft-unexpected windfalls can feel so exciting. Yet, more often than not, they’re gone before they hit your checking account. Having a pile of “extra” money can cloud your judgment, leading you to spend it on things that aren’t really a priority. Do you even remember what you bought last time? I sure don’t.
Because saving for a down payment was our number one priority, our money followed suit. When extra money arrived, we immediately sent it to the house down payment category. We tried to do this with everything—gifts, tax returns, bonuses, salary increases, etc. We changed our minds a few times (I really wanted that new Kindle), but that was okay. Saving 90% of our windfalls felt so much better than saving 0% of them. And turns out when you want to really start building wealth, this mindset goes a long way. It helped us avoid lifestyle creep and aligned our financial decisions with our long-term real estate goals.
3. We Increased Our Fun Money
The third and most impactful change we made happened mid-year. We weren’t saving as much as we thought we would be—that $2,000 we were setting aside each month had a habit of disappearing when we overspent in other areas. Overspending happens—it’s unrealistic to expect it won’t. But if your dining out spending is eating into your down payment (like ours was) it’s time to do something about it.
My partner and I started brainstorming. We realized it was a mental game—we were being too restrictive! Our plan wasn’t realistic and we were feeling the effects.
To get back on track we decided to start allocating more to our Fun Money categories (like…a LOT more. We more than quadrupled the amount in each of our fun money allotments). I have one and my partner has one. We put the same amount of money in each, and it can be used for anything, no questions asked. The one caveat—all overspending would be covered with dollars from our “fun money” categories, taken equally from both.
This change had an immediate and dramatic effect. The next time I wanted something (like that Kindle) I was able to buy it without overspending another category—I’d just use my Fun Money. And if I didn’t have enough, I could easily save for a month or two.
The real win, though, arrived at the end of the first month, when we were deciding if we should go out to eat. Our dining out category was empty, and $40 of overspending didn’t feel that bad. Then I remembered that $40 in overspending meant I’d lose $20 from my Fun Money. I was faced with a choice: buy that thing I’ve been wanting or go out to eat because I don’t want to cook. That choice was ridiculously easy—we ate at home, and I wasn’t even mad about it.
Since we made that change, we’ve saved $2,000 every month, without fail. There’s something about that approach that helped us see our priorities even more clearly. Overspending still happens, but much less frequently. And when it does, we have a plan to cover it that doesn’t hurt our progress toward our down payment.
Month after month we saved. There were still times when it felt like the cash we were setting aside would never be enough, but we persevered. Despite my fears, the quality of our life didn’t have to change that much. And we didn’t miss the things that did change—they weren’t priorities after all.
Let YNAB Be Your Guide
A year later we sat down for a monthly money meeting. I happened to glance at the house downpayment category and I was shocked to see $30,000! It’s not a category we touch, so months would go by without paying much attention to it.
It felt surreal. We didn’t have to refinance student loans, start side hustles, or make major sacrifices. We just followed a plan.
If you’re trying to figure out how to save money or how to align your spending with your values, YNAB is a powerful tool for reaching your financial goals.
Spring is in the air, and we’re now browsing open houses. Real estate feels possible, and we’re already dreaming about home upgrades and someday starting a small business in our future garage. One year ago, that would’ve felt laughable. Now, it’s just another step on our journey.
Want to make your homeowner dreams a reality? Supercharge your savings with a plan that matches your priorities. Whether you’re full-time, freelance, or low income, you can start with what you have. Set a clear savings goal, get clear about your priorities, and let every dollar move you closer to what matters most.
Want to make your homeowner dreams a reality? Supercharge your savings today with the help of YNAB. You’ll be able to line up your spending with your priorities like never before. Try it free for 34 days, no credit card required!
