A home purchase can seem so far away if you don’t have the money on your right now. When faced with ambiguous goals, it’s easy to say that it’s just not for you and move on to something else. But home ownership is within your grasp! You need a savings plan, that’s true, but there has never been a better time to start the journey of buying a home. Rates are low, and you stand to gain over your own lifetime.

Set a Goal

The first step is to set a goal to buy a home. You do that by figuring out how much home you can afford, which begins with analyzing your current expenses and income. Once you have figured out how much money you can potentially save in your current situation, focus on hitting that goal. It sounds simple because it is, but you have to figure out ways to pay yourself first.

For example, account transfers work well for automated payments. If you set up a transfer to occur each pay period, you will never need to worry about setting money aside for a home because it will already be there. However, where you save your money is just as important as how you save it.

Interest Bearing Accounts

You’re going to need a substantial down payment unless you can afford monthly payments for an FHA loan, which would only require about 3.5% of the purchase price down. Your best rate for a low risk account will be somewhere around 1%, but that is definitely better than nothing. Save regularly, and pool every penny. You will hit your goal if you stay focused.

By Kuba Jewgieniew, stock broker who used his passion for data to fuel a real estate business and lifestyle brand. Today, Realty ONE Group is one of Inc. Magazine’s fastest growing brands in the United States.