5 Simple Ways to Save for a Down Payment on a Home in Minnesota

5 Simple Ways to Save for a Down Payment (Without Feeling Deprived)

Saving for a down payment can feel like the biggest obstacle between you and homeownership, especially with Minnesota home prices and everyday expenses adding up.

The good news? You don’t need extreme budgeting or a second full-time job to make progress. Small, intentional changes can quietly build a strong down payment over time.

Below are five realistic, proven ways to save for a down payment that many first-time buyers in the Twin Cities use successfully, without giving up the things they enjoy most.

Key Takeaways

• Small spending changes can add up to thousands per year
  
  
• Side income can dramatically speed up your savings
  
  
• Automating savings removes temptation
  
  
• Subscription audits uncover easy wins
  
  
• Mindful spending helps you stay consistent long-term
  
  

Watch the full video here:

How can cutting small expenses help you save for a down payment?

You don’t need to eliminate all fun spending, just be more intentional.

For example:

• Skipping one $20 restaurant meal per week = about $1,040 per year
  
  
• Cutting three $7 coffees per week = about $1,092 per year
  
  

That’s over $2,000 saved in one year from just two small habits.

Think of eating out and specialty coffee as occasional treats, not daily routines. Many Minnesota buyers are surprised how quickly these savings add up when tracked over 12–24 months.

Should I start a side hustle to save for a house?

If you have a few extra hours a week, a side hustle can make a huge difference.

Popular options include:

• Freelance or contract work
  
  
• Dog walking or pet sitting
  
  
• Grocery or meal delivery
  
  
• Weekend retail or seasonal work
  
  

Even $100 per week adds up to $5,200 per year—which could cover a large portion of a down payment or closing costs.

For buyers trying to break into the Twin Cities market faster, this is often a game-changer.

Why automating savings works so well for homebuyers

Automation removes willpower from the equation.

Set up a direct transfer from your paycheck to a dedicated savings account—ideally a high-yield savings account.

Even:

• $50 per month = $600 per year
  
  
• $100 per month = $1,200 per year
  
  

When savings happen automatically, you adjust your lifestyle around what’s left, without constantly debating whether to save.

How canceling subscriptions frees up extra cash

Most people are paying for subscriptions they rarely use.

Take a few minutes to review:

• Streaming services
  
  
• App subscriptions
  
  
• Gym memberships
  
  
• Membership programs
  
  

Cutting just one $15 subscription saves $180 per year.
Sharing services with family or friends can multiply that savings even more.

This is one of the fastest, least painful ways to boost your down payment fund.

What does mindful spending actually look like?

Mindful spending isn’t about deprivation, it’s about priorities.

Before buying something, ask:

“Do I really need this right now?”

Examples:

• Shop your closet before buying new clothes
  
  
• Try thrift or resale shops
  
  
• Delay non-urgent purchases by 24–48 hours
  
  

Many buyers find that simply slowing down spending decisions helps them stay on track without feeling restricted.

The Minnesota perspective on saving for a down payment

In Minnesota, many buyers are surprised to learn they don’t always need 20% down, especially for first-time buyers.

However, having:

• A stronger down payment
  
  
• Extra reserves
  
  
• Funds for inspections and closing costs
  
  

…can make your offer more competitive in Twin Cities markets like Maple Grove, Plymouth, Champlin, and Blaine.

Saving early gives you more flexibility and confidence when the right home appears.

Related Reading

• Creative Ways to Afford a Home in Today's Minnesota Market
  
  
• A Step-By-Step Timeline for Buying a Home in Minnesota
  
  
• Home Buying Expenses 101

Ready to turn your savings into a home?

Saving for a down payment doesn’t mean giving up everything you love, it’s about balance, intention, and having the right plan.

If you’re wondering how much you should save, what programs you may qualify for, or when buying actually makes sense, the team at First Choice Realty Solutions is here to help.

👉 Start with a simple conversation.
👉 Get clarity before you start touring homes.

Your journey to homeownership starts with one smart step, and we’re happy to walk it with you.