T
he internet is flooded with financial tips, tricks, and trends, with TikTok being a hub for users to share their success stories and favorite budgeting methods. If you're hoping to buy a house, these money tactics might catch your eye as potential ways to save up for that down payment.

    One popular method is the Financial Independence, Retire Early (FIRE) approach, which emphasizes extreme savings and investment to achieve early retirement. A 27-year-old TikTok user aims to retire in her 30s by saving diligently and investing now, so her money can make more money. This long-term strategy might not be ideal for those hoping to buy a home soon, but it teaches valuable lessons on investing and cutting daily costs.

    Dave Ramsey's Financial Peace method, also known as the Seven Baby Steps, is another widely followed approach. The steps include saving $1,000 for an emergency fund, paying off debt (except the house), and investing 15% of household income in retirement. While some have criticized the method on TikTok, saying it doesn't fit their lifestyle, it can provide a clear plan to make saving less daunting.

    Cash stuffing is another budgeting system that has gained popularity on TikTok. It involves sorting cash into labeled envelopes for specific expenses, making it inconvenient to overspend. This method requires creating a weekly or monthly budget and can help people avoid impulse purchases by using physical cash instead of cards. However, it may be risky if your cash is stolen, and you miss out on rewards programs available with credit cards.

    The 100-envelope challenge involves numbering envelopes from one to 100 and filling each day's envelope with the corresponding amount. This trend can be a great way to start setting aside money for a down payment, but it might be challenging for some people to gather $5,050 in cash.

    The "no-spend" challenge encourages people to buy only essential items, saving money that would have been spent on luxuries. While this method has been around for a while, it gained popularity on TikTok this year. The trend comes with good advice: don't buy what you don't need. Even if you don't plan to cut out unnecessary spending forever, this challenge can help develop better money habits.

    Experts weigh in on these budgeting trends, noting that each has pros and cons. Tim Choate suggests combining different methods, such as using the Financial Peace approach for long-term stability and cash stuffing for short-term goals like home down payments. Other experts stress the importance of determining the actual amount needed for a down payment and exploring low-down-payment mortgages or first-time homebuyer grants.

    Ultimately, the key is to assess your financial personality and choose a method that works best for you. Whether it's FIRE, Financial Peace, cash stuffing, or another approach, finding a system that helps you save and invest can be a valuable step towards achieving your goal of buying a home.