How to Save Money for a House While Renting

By Anna Baluch | Published on October 21, 2025

)

If you’re currently renting, saving for a house may seem like a daunting task. The good news is that it is possible. With some planning and persistence, you can turn your dream of homeownership into a reality. Whether you’ve recently decided to save for a house or have been trying to do so for quite some time, here are six tips and tricks to steer you in the right direction.

Downsize

There’s no denying that rent can be expensive. If you’re paying a lot for your current space, it might make sense to downsize to somewhere more affordable and put the money you save toward a home. The general rule of thumb is to spend no more than 30% of your monthly income on rent.

Open a Dedicated Savings Account

Do some research and find a high-yield savings account you can use to store your house fund. Compared to a traditional savings account, a high-yield account offers a better interest rate that can allow you to grow your savings at a faster rate. You can set up automatic deposits and contribute to the account regularly.

Create a Budget

A budget is a spending plan that can help ensure you have enough money for your expenses and financial goals such as a down payment for a house. While there are many types of budgets out there, the 50/30/20 is often a good choice. With the 50/30/20 budget, 50% of your income goes toward essentials like rent and food, 30% is for wants like dining out and entertainment, and 20% is for savings and debt payments.

Cut Your Spending

The more money you save on discretionary expenses every month, the easier it will be to meet your goal of homeownership. Take a close look at your spending habits and figure out what you can do to limit or reduce some of your regular purchases. If you eat out frequently, for example, you may want to cook at home more often.

You may also use coupons to save on groceries, entertainment, and more. Don’t forget to check your bank account and credit card statements for recurring charges or subscriptions. There’s no need to pay for gym memberships and other services you no longer use.

Earn Extra Income

If you don’t have a lot of cash left over after you pay your bills, it may be worthwhile to get a side gig or part-time job. You may deliver groceries, drive for a ride-sharing company, babysit, walk dogs, or even sell items online. Another option is to create a passive income source through investing or selling digital products, for example. Extra income can allow you to pay off high-interest debt and save more money for your future house.

Explore First-Time Home Buyer Assistance Programs

If you’re buying your first home, you might qualify for assistance programs that might be available through your lender or the state or local government. These programs can help you cover some of your down payment or closing costs. Do some research to find out which programs may apply to you.

Refinance with Earnest and Free Up Some Cash for a House

By refinancing¹ with Earnest, you may potentially save money on your student loans. This can add some wiggle room to your budget and help you become a homeowner sooner rather than later. Check your rate to see how much you might save with our fee free refinance². It’s a quick two minute process that won’t hurt your credit score.

)

About the Author

Anna Baluch

Anna Baluch is a freelance finance writer from Cleveland, OH. She enjoys writing content that helps people from all walks of life make good financial decisions. Her areas of expertise include student loans, refinancing, mortgages, personal loans, budgeting, and debt management.

Disclaimer

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Please note that you will lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

2 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.