While inflation is tapering, it still remains elevated, standing at 2.4% in January, according to the latest Consumer Price Index. The same goes for mortgage rates, which have been steadily declining and currently stand at 6.01% for the week ending Feb. 19, hitting their lowest level since September 2022, but still above the ideal rate for most Americans.
Against this backdrop, saving for a house or a down payment remains challenging for many Americans.
But as the saying goes, a penny saved is a penny earned, and some experts say that financial strategies, such as the “$27.39 rule,” could help achieve this goal.
What is the $27.39 rule?
The rule is simple: Save $27.39 a day, totaling $191.73 a week, $830.83 a month, and $9,969.96 a year.
In short, saving $27.39 daily for 365 days will result in nearly $10,000 in savings.
Steve Sexton, CEO of Sexton Advisory Group, said that if saving money feels daunting to you and you’re not sure where to start, the $27.39 rule is one way to make it less intimidating and actionable.
“That said, getting to $10,000 requires discipline—that means you can’t skip any days. It’s all about a small daily choice that compounds over time,” Sexton added.
Jake Sadler, certified financial planner and founder at Curio Wealth, echoed that sentiment, noting that every great journey is made one step at a time.
“You can easily compare the amount to skipping takeout or trimming subscriptions. The idea is to make it feel doable in a way that ‘save $10,000’ simply doesn’t,” he said.
Does this strategy work in today’s housing market?
Jay Zigmont, CFP and founder of Childfree Trust, says that $10,000 is a good start toward a down payment. However, he tends to recommend putting 20% down when buying a house, so $10,000 will restrict how much home you can buy.
However, he added that if you and your property qualify for an FHA loan, you may be able to put as little as 3.5% down, meaning your down payment could be as low as $10,000 on a $300,000 home.
“Keep in mind that there are often closing costs that will also need to come out of that $10,000,” he said.
Blake O’Shaughnessy, founder of real estate platform Ownli, agreed, saying that $10,000 in today’s housing market is usually just a starting point.
Between down payment requirements, closing costs, inspections, lender fees, and moving expenses, that money can disappear fast.
“In many places, it barely covers the upfront costs, and that’s before you even think about commissions, which on an average home can easily run $20,000 to $30,000 or more,” he said. “So it’s not a bad idea, but it shouldn’t be framed as ‘do this for one year and you’re ready to buy.” It’s more like step one in a longer process.”
There is also the geographical factor, as home prices can vary widely by location.
For instance, Sadler said this approach can work in lower- to moderate-cost markets, but is less impactful in higher-cost coastal cities where entry-level prices exceed $600,000.
“Keep in mind that for the strategy to hold, a few assumptions must be true: Home prices can’t outpace your savings rate, mortgage rates need to remain stable or improve, and you should be building credit and managing debt-to-income simultaneously. And critically, you shouldn’t be draining your emergency fund to hit the $10,000 mark,” Sadler said.
Finally, Bobbi Rebell, CFP and consumer finance expert at CardRates.com, said that this behavioral finance tool makes saving what is, for many people, a huge sum into something manageable and realistic.
The key is consistency, she said, and any amount helps when saving for a down payment.
“Buying a home is more marathon than sprint, but a surge to get started is never a bad idea and can really drive momentum and motivation,” she added.
Is short-term aggressive saving sustainable, and what should buyers watch out for?
As Bankrate principal analyst Ted Rossman notes, saving is easier said than done for many households; the personal saving rate has dipped to just 3.5%, according to the Federal Reserve Bank of St. Louis, below historical norms, as affordability concerns have intensified in recent years.
Rossman said that it’s easy to say that the goal is to live on less than you make, but how do you actually do it?
“Saving right off the top is useful because you’re less likely to miss what you don’t see. If you try to save what’s left at the end of the month, there might not be anything left, so be intentional about saving upfront,” he said. “The best savings accounts yield up to 4.6%, so that’s a bonus. Slow and steady can win the race. You won’t achieve your savings goal overnight, but persistent saving can help you come out ahead. Set money aside from every paycheck and watch it add up over time.”
In terms of whether short-term aggressive saving is sustainable, this depends on a slew of factors, such as whether it is done with a plan.
“Make a commitment, and leave yourself room for a small breather every once in a while,” said Jordan Del Palacio, a loan partner for Churchill Mortgage.
Del Palacio argued that if you aggressively operate on a shoestring budget for a short period of time, but don’t work to develop a long-term savings plan, you could put yourself in a predicament.
Several experts underscored that for aggressive short-term saving to work, it also needs guardrails.
O’Shaughnessy said one big risk with aggressive saving plans is burnout: People go all in for a few months, cut everything out of their life, and then eventually hit a wall and abandon the plan altogether.
“What works better is something people can actually live with. Maybe it’s not exactly $27 every single day. Some weeks are stronger, some are lighter, and that’s normal. Consistency over time matters more than hitting a perfect number,” he said.
Sexton agreed, saying that where he sees clients struggle is when they strip their budget so clean that unexpected expenses, such as medical bills, job loss, or car repairs, force them into credit card debt.
“The math just isn’t mathing if you’re paying 20% interest while trying to save 5%,” he said.
In turn, he suggested considering some rules: Keep an emergency fund intact while saving for your down payment and avoid draining your retirement contributions completely, especially if you’re getting an employer match.
He also recommended not delaying home maintenance or health care expenses just to hit a savings target.
Lastly, he said the most important question you can ask yourself, regardless of how much you’re aiming to save daily, monthly, or annually, is “can I sustain this without destabilizing the rest of my financial life?”
“Remember, buying a home is a long-term commitment. The financial habits you use to get you there should be sustainable beyond closing on escrow,” Sexton said.