Most people who rent instead of buy do this because of money concerns. Builder Online estimates it could take young Americans seven years to even save up for a 10% down payment! Dave Ramsey has a plan to help you afford a down payment on a home and do it in 18 months or less.

You need to know what your goal is before you even start saving. If you can’t pay cash for your home, put at least 10% down. 20% is optimal though because it allows you to avoid private mortgage insurance (PMI). Be sure to go with a 15-year fixed-rate mortgage that’s no more than 25% of your monthly take-home pay. 

Tip #1: Cut expenses

If you pay attention to what you spend your money on, you’ll be amazed at how much you can save. Try making a few changes that will help you save money. For example, you could take a break from the gym, eat out less, spend less on clothing, and buy generic brands at the grocery store. This could save you around $600 a month! 

Tip #2: Bring in more money

To boost your income, consider working a second, part-time job. Think of things you enjoy doing and how it could possibly make you some money. For example: Walk neighborhood dogs or pet sit while neighbors are out of town, find a tutoring job, or be an Uber driver. Even if you just work 16 hours a week and make $10 an hour, that will bring in $120 a week. All of that money really adds up in the course of a year.

Tip #3: Don’t splurge

If you typically go on a vacation each year, skip a year and put that money toward a new home instead. You can also go through things you don’t use anymore and sell items at a garage sale. If you get an annual bonus at work, put that toward your home as well.

Saving up for a down payment can seem daunting but these tips can help you achieve your goal of owning a new home quicker than you think.