Real-Life Ways to Save Money and Buy a Home

Buying a home is one of the most significant investments many people will make — and for first-time buyers, it can feel especially intimidating. From down payments to closing costs, the numbers can add up quickly. But the good news? Homeownership is more achievable than you might think — with the right planning and a commitment to saving.

Here are several proven, practical strategies to help you save money and move closer to buying your home.

1. Pay Yourself First

Treat your savings like a non-negotiable monthly expense. Set up automatic transfers to a separate savings account designated solely for your future home. Even modest, consistent contributions can grow significantly over time.

2. Track Your Spending

Understanding where your money goes is the first step toward better control. Use budgeting tools or mobile apps to review your monthly expenses. Small adjustments — like cutting back on dining out or unused subscriptions — can free up extra funds to put toward your goal.

3. Shop Smart

Before making new purchases, consider secondhand options. Consignment shops, community marketplaces, and local thrift stores offer excellent deals on clothing, furniture, and household items — allowing you to save without sacrificing quality.

4. Sell Unused Items

Decluttering not only frees up space, it can also generate income. Items like electronics, furniture, and even gently used clothing can be sold online or through community garage sales. Every little bit contributes to your savings.

5. Manage Credit Wisely

Avoid unnecessary debt and focus on reducing high-interest balances. A strong credit score is crucial when applying for a mortgage — and minimizing interest payments helps you save more in the meantime.

6. Cut Utility Costs

Simple changes such as using energy-efficient lighting, sealing windows, and adjusting your thermostat can reduce monthly utility bills. These savings, though small individually, can add up over the course of a year.

7. Take a Financial Education Class

Knowledge is power — and that’s especially true when it comes to personal finance. Organizations like New Mexico MFA offer free financial fitness and homebuyer education classes. These sessions cover topics like budgeting, saving, credit management, and understanding mortgage options — all designed to prepare you for successful homeownership.

8. Boost Your Income

If possible, consider taking on a part-time job, freelancing, or a short-term side hustle. Designate all extra income specifically for your home savings fund to accelerate your progress.

9. Set a Clear Goal

Define how much you need for a down payment, then set a target timeline. Breaking your savings goal into monthly or biweekly amounts makes it easier to stay on track and measure your progress.

10. Connect with a Local Expert

Working with a local REALTOR®, lender, or housing counselor can help you understand current market conditions, explore first-time buyer programs, and identify opportunities for down payment assistance — which can significantly ease the path to homeownership.

Final Thoughts

Saving for a home takes time and discipline, but it’s absolutely within reach. By making intentional financial choices, educating yourself, and leveraging available resources, you can confidently take the next step toward owning a home.

You’ve got this — and when you're ready to take that next step, contact your local REALTOR® to help you unlock the door to your future.

New Mexico homeowner education resources:

🏦 New Mexico Mortgage Finance Authority (MFA)

The MFA provides affordable housing programs and requires all buyers to complete a homebuyer education course before purchasing. These courses help buyers understand the homebuying process and assess how much mortgage they can afford. Their online housing counseling options are eHomeAmerica (English and Spanish), Duty To Serve, and Finally Home! Learn more here.

🏡 Homewise

Homewise is a nonprofit organization based in Santa Fe and Albuquerque that offers free financial fitness and homebuyer education classes in both English and Spanish. These classes are available online and in-person, covering topics such as budgeting, credit management, and the homebuying process. Completing these courses can also make you eligible for Homewise mortgage loans and down payment assistance programs.

These organizations provide valuable resources to guide you through the financial aspects of homebuying. Whether you're just starting to consider purchasing a home or are ready to take the next steps, these classes can equip you with the knowledge and tools needed for successful homeownership.