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Homebuyers who want modern touches and few maintenance worries may opt to purchase a new construction or have a home built to order.

In December 2025, the median price of a new home was $414,400, according to the U.S. Census Bureau. As homebuyers have found a shortage of existing homes on the market in recent years, new-home construction has worked to fill the gap, with many builders offering incentives. Here’s a guide to understanding this market and learning some of the lingo.

Understanding New Construction Homes

On the upside, newly constructed homes can come with warranty-backed electronics, energy efficiency, and high-end features.

But new construction isn’t without potential snags, such as construction delays and the mounting price of upgrades.

The type of new construction you choose will determine the cost and ability to customize and may also affect your home loan options.

•   Tract homes: These go up in a builder’s new development. The buyer chooses the lot and design features.

•   Speculative, or spec, homes: These are move-in-ready homes, but the buyer still might be able to choose some of the finishes. It’s a good idea to understand the difference between standard property features and upgrades.

•   Custom homes: A builder tailors a house to the buyers’ specifications on their land.

How Do I Buy a New Construction Home?

The first step is to get preapproved for a mortgage and hire a real estate agent. You’ll choose a builder, go over your desired home features, and sign the builder contract, which will include the anticipated timeline, the cost, and all other details.

Mortgage options for a tract or spec home are the same as buying an existing home: conventional or government-backed home loans.

Those who are building a custom home might use a construction loan for the build and then obtain a mortgage once the home is complete. There are, however, Federal Housing Association, Veterans Affairs, U.S. Department of Agriculture, USDA, and conventional construction-to-permanent loans, also called single-close loans.

Figuring Out the Costs of New Construction

How much does it cost to build a new house? For 2,200 square feet, it could cost $330,000, but of course, there are many variables, including location, the price of labor and materials, and your taste.

For a spec home, it might be a good idea to look at comparables in your area. For a new build, HomeAdvisor suggests budgeting for each phase of the project, as well as the necessary time to complete it.

In normal times, expect to spend about 60% of your budget on materials, HomeAdvisor says.

If you are buying a staged model house, the upgrades may be considered marketing costs, and the home may have been walked through many times. You might also have room to negotiate.

Pros and Cons of Building or Buying a New Construction Home

Buying new has its pros and potential cons.

Pros

Everything’s new: Novelty can be a lure all its own. From a practical standpoint, new items signal less maintenance for years.

Additionally, with a from-scratch property, homebuyers may also be able to build their house on the precise plot of land that they want. Buying an existing home could mean having more neighbors nearby or fewer choices about the size or borders of the property.

Warranties: Appliances, roofing, and the heating, ventilating, and air conditioning (HVAC) system may be covered by manufacturer and construction warranties. Replacement or repair may be guaranteed for years, which can be a big relief when buying new construction as opposed to buying an existing home. Ask most homeowners about typical home repair costs, and they’ll describe the opposite of fun.

Energy efficiency: Homebuilding has been moving toward energy efficiency, or green architecture. Features such as solar panels, treated windows, efficient lighting, and energy-saving appliances curb home energy expenses over the life of owning a home.

Reduced homebuyer competition: If a buyer opts to build a new home on an undeveloped tract of land, chances are low that a competing homeowner wants to build in that exact location at the same time.

Buying discounts: A local contractor has ties to building supply companies and hardware stores. These business-to-business connections may translate into lower costs.

Cons

Land-starved locations and zoning: The denser a community — think a big city or large suburb — the harder it may be to find land to build on. Moreover, local zoning regulations often regulate the size and type of new homes that can be built on residential lots.

Potential building delays: It takes seven to 12 months on average for a contractor and 12.1 months for an owner to build a house, according to Census Bureau data., That’s a significant wait, but building delays are fairly common and add to the bottom line. If a homebuyer needs to rent, for instance, while the house is being constructed, any delays could mean extra housing expenses.

New-home buyers can prepare for changes by touring similar finished homes in the community, researching the builder’s reputation, and speaking to residents. It’s also a good idea to talk with the builder about common construction delays and how unexpected costs are handled.

Negotiating price may be harder: When working with a homebuilding company, negotiating may not be possible. Many builders attach a minimum price to the construction of a new home.

Upgrades add up: If wood floors, glass-front cabinets, and premium tile are must-haves, be prepared to pay for them. There is usually a starting price attached to newly constructed homes. Upgrades can add substantial costs to a new home.

Buying Tips for Newly Built Homes

Prepare to breathe in that new-house smell, but first, lay the foundation.

Line Up Financing

When it comes to buying any type of house, getting prequalified is good. Getting preapproved is more serious because you will have to let lenders vet your finances and give you a specific amount you qualify for.

Lenders can also recommend the best kind of financing for a new build.

Hire a Real Estate Agent

Homebuyers who want to make a new dream home a reality may want to find a good real estate agent. Here’s one reason why that’s important: The sales contact from the home construction company is hired to represent the seller (i.e., the builder or developer). A buyer’s agent can champion buyers’ interests, negotiate the contract, and answer questions.

Ask for Builder Concessions, and Sign the Contract

Homebuyers aren’t likely to get a builder to slash a new home’s sales price, but they might be able to gain some concessions. Some builders may offer upgrades at a reduced price to incentivize a homebuyer to buy.

Upgrades may include higher-grade carpet, granite countertops, a more advanced HVAC unit, or higher-end kitchen appliances. It doesn’t hurt to ask.

Once you’re pleased with your decisions, you’ll sign the builder contract to buy a spec home or start construction on a new home.

The Takeaway

Newly constructed homes have obvious appeal, but they can come with potential delays and other drawbacks. Buyers who have their heart set on a brand-new home will find that financing often works the same way as it does for an existing-home purchase.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Can you negotiate the price of a new construction home?

Negotiating the price of a new construction home can be challenging, as many builders set a minimum price. However, it might be possible to negotiate upgrades or concessions instead of a price reduction. Homebuyers can work with a real estate agent to help them negotiate with the builder.

What is a realistic budget for building a house?

A realistic budget for building a house will vary depending on the location, size, and desired features. In general, a 2,200-square-foot home requires a budget of around $330,000, not including the cost of land. But cost can increase or decrease depending on the specific materials and finishes chosen.

What are the pros and cons of buying a new construction home?

New construction homes may offer modern features, warranties, and improved energy efficiency. However, buyers should also consider potential construction delays, upgrade costs, and limited flexibility on base pricing. Understanding these trade-offs can help buyers decide whether new construction is the right fit.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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SOHL-Q126-113

Buying a house is a major step, and planning to purchase a home can be a lot of fun. You get to figure out where you’d hang your favorite artwork, plant a vegetable garden, put the PlayStation — and maybe contemplate taking on some DIY projects yourself.

But there’s another, more nuts-and-bolts aspect to your pursuit of the American Dream: how to budget for a house. Almost 66% of people in the U.S. were homeowners in the fourth quarter of 2025, according to the latest Census data. That’s a good indicator that buying your own home is within reach.

Doing so will likely require you to be smart about your finances in terms of saving and taking on the responsibility of owning a property. To help you be successful in this pursuit, read on for the intel you need, such as:

•  How do I know how much house I can afford?

•  What are the costs/fees to consider?

•  What will my ongoing costs be?

•  How can I budget for a house?

Upfront Expenses

First, consider how much you would have to fork over if you find that perfect center-hall Colonial or loft-style condo. Once an offer on a new home is accepted, there are certain things the buyer needs to pay for right off the bat and, in most cases, out of their own pocket. These are called upfront expenses. Here are a few.

Down Payment

You may have heard of the traditional 20% down payment guideline, which helps you avoid paying private mortgage insurance (PMI) on applicable loan programs. A higher down payment may also result in better mortgage loan terms, such as a lower interest rate, which may translate into lower monthly mortgage payments.

Yes, it’s a lot of money to put aside, but if you can swing it, in the long run, applying a 20% down payment will likely save you from paying thousands of dollars in additional mortgage interest over the life of the loan. Can’t pull together that big a chunk of change? Look into options of a mortgage lender with a lower or no down payment:

•  The minimum down payment for a first-time homebuyer on a conventional loan can be as little as 3%. You may also need a strong credit profile to qualify, and lenders may set their own minimum credit score requirements.

•  A Federal Housing Administration (FHA) government loan that is open to everyone typically requires a down payment of at least 3.5%.

•  Department of Veterans Affairs (VA loans) or U.S. Department of Agriculture loans may allow eligible borrowers to finance up to 100% of their home’s cost. In other words, no down payment is required.

It’s worth noting that, regardless of the size of your down payment, buying may still reduce your overall monthly expenses, depending on market conditions, interest rates, and individual circumstances.

2% to 5% Closing Costs

You can expect to pay an estimated 2% to 5% of your home price for closing costs and should save accordingly. For example, if you buy a home that costs $300,000, you may be required to pay between $6,000 and $15,000 in closing costs.

Some costs are fixed and not tied to the price. In these cases, the percentage can be higher for the lower range and lower for the higher purchase price range.

What exactly do closing costs comprise? This can include bank charges, such as origination fees and any points you may have purchased to buy down your interest rate, and costs such as the appraisal fee and a title search.

Keep in mind that there are alternatives to paying the closing costs out of pocket, such as requesting a seller credit, requesting a lender credit, or tapping into an applicable down payment assistance program. These options can help you minimize this expense.

Moving Costs

Don’t forget when budgeting for buying a house that you will need funds to move in. Unless you’re lucky enough to have a generous pal with a van, you’re probably going to have to hire a moving company. The average cost of a long‑distance move in 2026 is typically around $3,020, though prices vary based on distance, weight, and service level.

These costs can vary widely, of course. If you are moving with just a bedroom’s worth of furniture versus a whole house, your price tag will be lower. It’s wise to comparison-shop for moving companies and factor this expense into your own budgeting for a home move.

If you’re relocating for work, check with your company to see if it offers a relocation package to help cover some or all of the moving costs.

New Furniture and Appliances

Your new house may not have the same dimensions and style as your old house. This could mean that you need to buy new furniture and appliances. When budgeting for buying a house, you might want to talk to friends or relatives who have moved recently and ask about unexpected expenses. For example, it’s not uncommon when you move to have to purchase items such as new locks, shower rods, and window treatments. These expenses can quickly add up.

You might want to start a savings account for these types of purchases — some of them may be costlier than you imagined.

Recommended: First-Time Homebuyer Guide

Ongoing Expenses

Now that you’ve figured out the details related to the actual purchase, consider the expenses that will accrue once you’re a homeowner. Recurring charges are a vital part of the calculations of how much home you can afford.

Monthly Charges

First, consider how much you’ll be spending every month on your monthly mortgage payment and related costs. Principal, interest, property taxes, homeowners insurance, and other assessments (PITIA) are the components of a mortgage payment. Here’s how it breaks down:

•  P: The principal is the “meat” of the monthly payment amount — paying down the principal will reduce the loan balance.

•  I: Interest is what you are charged for borrowing the money.

•  T: Taxes refer to your property taxes.

•  I: This “I” refers to insurance. This includes both your homeowners and mortgage insurance, if applicable.

•  A: Other assessments refer to things that may apply to the home you purchase, including HOA dues and flood or earthquake insurance.

HOA Dues

HOA dues typically apply to a condo, co-op, or property owned in a planned community.

The charge is monthly (although it could be quarterly or annually), and the funds usually go toward maintaining the community (landscaping, garbage collection, repairs, and upgrades).

Before purchasing a property with HOA dues, consider asking the association for a complete HOA questionnaire. With this, you can assess how healthy the association is, whether there is any outstanding litigation due to structural or other issues, etc. These factors could impact costs down the road.

Maintenance and Lawn Care

Your budgeting probably won’t stop once you’ve moved and settled into your new home. Expenses will likely continue to knock on your door — landscaping, roof repair, and water heater replacement are just a few items that might require ongoing financial consideration.

You may want to budget for 1% to 4% of the cost of your home each year to pay for maintenance expenses. However, deferred maintenance costs may require more funding, depending on the age, quality of construction, and where you live, for example.

Pest Control, Security, and Utilities

The cost of electricity, gas, water, and internet services differs from market to market. This is also true for pest control and services that help ensure your home is secure and safe. You could find yourself paying more (or even less) for these services depending on where your new home is located.

Quiz: How Much House Can You Afford?

Planning Ahead

So, now that you understand the costs associated with homeownership, you can start working on how to budget for a house.

Ideally, you’ll want to cover your home-buying costs and then be able to afford your monthly carrying costs without racking up debt. The standard advice is that your monthly housing expenses should account for up to 28% of your monthly pretax income. Given how expensive some housing markets can be, it’s not uncommon to find people spending more than that right now.

Here’s some advice for figuring out what you can afford.

Target Mortgage Costs

Do your research on the different types of mortgage loan programs. Determine your price range based on the current interest rates. Find the programs that may best suit you so you’ll feel confident you can bid and afford a home once you have your down payment saved. Don’t forget to factor in those other PITIA expenses mentioned above as you think about your own monthly income and cash outflow when you’re a homeowner.

Build a Budget

Once you have these costs calculated, you can then start budgeting for buying a house. You’ll want to save for your down payment while paying current bills and handling other financial obligations, of course.

•  Create a line item budget. You’ll want to note how much money you have coming in and how much is spent on your needs (housing, food, medical expenses, debt repayment). You’ll see what’s left for your wants (think travel, dining out, clothes, and entertainment) and start saving money for your future home.

◦  Don’t skimp, though, on establishing an emergency fund. In a pinch, these funds can keep you from using your credit card and running up even more debt.

•  Assess where you can save more. To ramp up your savings for your house, look for ways to economize. Could you drop a subscription or two to streaming channels, or perhaps eat out less often?

◦  Also see what you can do to avoid high-interest credit card debt, which can take a bite out of anyone’s budget. You might want to take advantage of a zero-interest balance transfer credit card offer or investigate whether a lower-interest personal loan could help you pay off your debt and save money.

•  Use automatic transfers. Help yourself hit your savings goals by automating payday transfers from checking to savings. That way, you won’t see the cash in your account and be tempted to spend more.

•  Bring in more moolah. If the numbers aren’t adding up to bring your home-buying plans within reach fast enough, consider using windfalls (a tax refund, a bonus at work, or a birthday gift of cash from a relative) to boost your savings. Also think about ways to bring in more income, whether by asking for a raise or pursuing a side hustle.

The Takeaway

Budgeting for buying a house requires thinking about short-term costs, such as a down payment, closing costs, and moving expenses, as well as long-term costs, including homeowners insurance and maintenance expenses. It’s wise to look at both before you pursue a mortgage preapproval or make an offer on a home.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How much money should you save before buying a house?

Ideally, you should save enough money for a 20% down payment, although many homebuyers put down less, and some government programs allow you to buy with no down payment at all. You’ll also want to have money for closing costs (2% to 5% of the home’s price) and an emergency fund in case of an unexpected setback.

How much do I need to earn to afford a house?

This depends on the housing market you’re looking at and the area’s overall cost of living. The national average salary is roughly $62,140 per year, which may be able to afford you a $180,000 home. Use a home affordability calculator to explore the numbers for your specific situation.

What ongoing costs should I expect after buying a house?

Homeownership comes with recurring expenses beyond your mortgage payment. You’ll need to budget for property taxes, homeowners insurance, HOA dues (if applicable), utilities, and routine maintenance. Many homeowners set aside 1% to 4% of their home’s value each year for upkeep, plus additional funds for unexpected repairs.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q126-143

If you’re finding it hard to be optimistic about increasing your riches, you may want to consider adding financial affirmations to your everyday routine. Affirmations that specifically target money have the power to change self-defeating or negative self-talk about your finances. When you replace a pessimistic mindset about earning, spending, and getting out of debt with a positive one, you’re more likely to take the steps needed to attract the wealth you want — or so the thinking behind daily affirmations goes.

Reciting daily affirmations may seem awkward at first, and the truth is that some people won’t find them a game-changer. The good news is that they don’t cost anything, and you control the outcome. Here’s the lowdown on financial affirmations so you can decide if they’re right for you.

What Are Money Affirmations?

Money affirmations are positive words, phrases, and sentences designed to turn discouraging thoughts about money into more positive ones. The hope is that by regularly repeating these uplifting statements, either in your head or out loud, you can reprogram your way of thinking. When you swap out old beliefs for new ones, and they start to feel true, you may feel ready to put them into action.

The types of financial affirmations you can choose vary depending on your money goals. For example, you can create statements about increasing your income, getting out of debt, saving money, and expressing gratitude for the financial abundance you already have.

Creating your own personal affirmations involves dealing with your specific money issues or blocks and deciding how you can move forward.

While there’s no set rule for how many times a day you should verbalize your money affirmations, staying consistent can help them become a habit. A good starting point might be picking one powerful affirmation and repeating it throughout the day. You could also choose three to five affirmations and recite them for five minutes or several times a day.

Be careful not to take on too many at once, as it may feel overwhelming and scatter your focus. Once you get the hang of it and it feels more doable, you can try adding more.

Optimizing Your Money Affirmations

Positive affirmations may work better if you put them in the present tense, such as “I can,” “I am,” or “I have,” instead of using language such as “I will,” “I should,” or “I could.” Why? Statements that focus on future outcomes suggest you could become a certain way instead of addressing the reality of where you are now.

It can take a while to reshape your way of thinking, so try not to feel discouraged if, in the beginning, progress seems slow or nonexistent. Remember, it took years to shape your current beliefs, so it can take some time to adjust to new ones.

Pros and Cons of Money Affirmations

As mentioned earlier, affirmations don’t always appeal to or work for everyone. Depending on your current state of mind and life circumstances, financial affirmations may seem trivial, futile, or simply not a priority. If you’re experiencing some stressful times or financial hardships, you may not have the emotional or mental bandwidth to take them on.

On the other hand, many people find that daily practice feels empowering, provides clarity, and motivates them to take more financial control and responsibility.

Before you decide to try money affirmations, here’s a list of pros and cons to consider:

Pros of Using Money Affirmations,

•   Give you a wider perspective on your core financial values

•   Assist in setting personal financial boundaries

•   Help you create a realistic budget

•   Cultivate a more positive relationship with money

•   Keep you focused on your vision and financial goals

•   Home in on your strengths

•   Boost your self-image and confidence

•   Encourage you to celebrate past financial successes and current achievements

•   Promote problem-solving

•   Encourage you to explore new ways to expand your wealth

Recommended: What Is Ego Depletion and How Do You Overcome It?

Cons of Using Money Affirmations,

•   Can feel inauthentic if they fail to align with your core beliefs

•   Can put too much self-applied pressure to transform your financial picture quickly

•   Can be time-consuming and easy to neglect when you’re busy

•   Require daily financial discipline, commitment, and persistence

•   May not cause any positive shifts in your thinking and lead you to feel you’ve wasted valuable time

•   May make you feel foolish, self-conscious, or uncomfortable reciting them

•   May bring up painful emotions about money you may not be ready to address, even with financial therapy

•   Could create self-doubt or self-defeating feelings if you’ve chosen affirmations that aren’t realistic or attainable

•   May overwhelm you and zap your emotional energy, especially if you’re going through difficult times

•   Probably won’t provide instant gratification if you want or need a quicker mental money fix

39 Ways to Think Your Way to Being a Millionaire

Want to give money affirmations a try? Reciting any of these to yourself daily may help transform negative thoughts into more positive ones:

1.    I choose to only have positive thoughts about money.

2.    I release my fears around money.

3.    I have the power to create and build the wealth that I desire.

4.    I am open to receiving financial abundance.

5.    I’m worthy and deserving of a wealthy life.

6.    If others can be wealthy, so can I.

7.    I draw prosperity to me.

8.    I trust I’m on a path to becoming more financially solvent.

9.    I believe I can achieve my financial goals.

10.    I am capable of handling money.

11.    I’m working toward building a strong money foundation and achieving financial wellness.

12.    I find the positives in my current financial situation.

13.    My debt doesn’t control me. I can manage it, and I can become debt-free.

14.    I overcome all obstacles that lie in my way of financial success.

15.    I want more money, and that’s okay.

16.    Saving money is a positive challenge.

17.    I can make my dreams a reality by sticking to a budget.

18.    Starting an emergency fund to protect myself is something I can do.

19.    Every dollar I save brings me closer to financial freedom.

20.    Each day is an opportunity for me to change my money story.

21.    Money well spent is a source of good and positive things.

22.    The more I give, the wealthier I become.

23.    I use money to improve my life.

24.    Wealth flows into my life consistently.

25.    There are countless ways I can bring more money into my life.

26.    Everything I need to build wealth is available to me right now.

27.    I choose to focus on money coming to me with ease.

28.    My income can exceed my expenses.

29.    I deserve to increase my income.

30.    There are no limits to the amount of money I can make.

31.    I can profit from my skills.

32.    I’m happy to pay my bills for all they provide me.

33.    I’m grateful for the money I have now and the money that’s on its way to me.

34.    Money can expand my life opportunities and open me up to new experiences.

35.    The money I earn and spend makes me happy.

36.    My net worth is not my self-worth.

37.    I move from poverty thinking to financial abundance thinking.

38.    My life is full of riches beyond money, and my happiness is surging.

39.    I have a millionaire mindset. I think like a millionaire, I act like a millionaire, I feel like a millionaire, I am a millionaire.

The Takeaway

Changing long-held, entrenched beliefs about money can be challenging. Incorporating financial affirmations into your daily routine may help you shift your mindset in a more positive and hopefully productive direction. While these affirmations may not appeal to everyone, if you feel stuck and want to take some baby steps toward improving your financial outlook, they may be worth a try.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How do you write affirmations for money manifestation?

A review of affirmations online reveals that they generally have two things in common: They often start with “I,” and they are in the present tense. Some people believe that money mantras should be short (mo’ money!), while others think they just need to resonate with those who recite them.

How do you attract the abundance of money?

The idea of attracting the abundance of money depends more on belief than anything else. If you believe you can attract it, that belief may lead you to take action — perhaps, to start a business or at least to make a plan. So to attract the abundance of money, you may want to start by believing that you are capable of becoming rich.

How do you get a millionaire mindset?

The first step to achieving a millionaire mindset is ridding your mind of self-defeating thoughts. But just being positive isn’t enough. You likely want to develop attitudes associated with successful people, such as being open to learning, not fearing failure, and being proactive.

Do money affirmations really work?

Whether money affirmations work often depends on the person. Some people may not find them helpful, especially if they do not have the emotional bandwidth to commit to them. Others may find that affirmations help build their confidence and empower them to reshape their beliefs.

How many affirmations should you use?

Starting with too many affirmations can feel overwhelming. You should choose a couple to begin with and focus on repeating them consistently. Once the practice begins to feel more manageable, you can try adding more.

Photo credit: iStock/atakan

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q126-020

The biweekly money-saving challenge involves putting away cash for 26 weeks, or every other week, for one year. The amount you decide to save can vary based on your goals and comfort level. This method not only helps you accumulate savings, but it also encourages you to develop consistent savings habits over time.

Types of Biweekly Money-Saving Challenges

If you’re paid twice a month, the biweekly money-saving challenge might be more suitable for your lifestyle. It’s also budget-friendly, so you can adjust this plan according to how much you have left after covering your necessary expenses.

26-Week or Biweekly Savings Challenge

There are many versions of this challenge. You can start with a small savings amount, like $3, in the first week. Every two weeks, add an extra $3 to the last amount you put away. In the second week, that would be $6, and then $9 in the third week. At the end of the 26-week challenge, if you started with $3, you’ll have $1,053 in savings.

Alternatively, you might prefer a fixed savings goal, such as $5,000 or $10,000. If so, put away $193 to $385 every two weeks. After a year, you’ll have between $5,018 and $10,010.

A money tracker can help you keep tabs on your spending and credit score and decide how much you can save.

How to Choose a Money-Saving Challenge

Choose a financial problem that you want to address. Setting targets and starting small can lead to big wins in many ways. Learning to put money aside lays the building blocks for long-term savings habits that can last a lifetime.

Find a challenge that’s budget-friendly. The amount you put away can be as little as a nickel on day one. The more you have to spare, the more you can save. Some challenges suggest using savings accounts or stashing cash. If you choose to open multiple accounts, keep in mind that traditional Federal Deposit Insurance Corporation accounts earn some interest and allow you to access funds for emergencies or planned expenses.

You might have specific financial goals, such as putting money aside for an emergency or funding a wedding. Or, you might want to build a habit of saving. Whatever your goal, a challenge can help you commit to saving $500 to $15,000 in a set period while building good habits.

Common Money-Saving Challenges

Money-saving challenges are smart saving strategies or smart spending strategies, depending on what you choose. They can show you how to save money quickly or in the long term.

And there’s no shortage of creativity. Google, TikTok, and Instagram list hundreds of money-saving challenges. You can even try saving $2,026 in the 2026 money-saving challenge. Below is a list of money challenges to get you started.

100 Envelope Challenge

In the 100 envelope challenge, you number 100 envelopes from 1 to100. Each day, choose one and put in the amount of cash written on the envelope. By the end of 100 days, you’ll have $5,050 stashed away.

Alternatively, you can break down the 100 days into 13 weeks (the final week is four days). For more manageable deposits, set aside a week’s total savings every other week. The table below details the amounts:

Holiday Helper Fund

The holidays sneak up on us quicker than we expect. If you’re planning your annual budget, set up an account or an envelope for extra funds. If you need to pay for gifts in the year ahead, be it for a holiday, a wedding, or a birthday, this keeps the money out of sight and mind until you need it.

Starting in the week of January 1, set aside $20 every week, or $40 every two weeks. By December 25, you’ll have $1,040.

52-Week Savings Challenge

In the 52-week savings challenge, you set aside $1 in week one, then continue to deposit an amount equal to the week number. By the end of the 52 weeks, you’ll have saved $1,378. You can also start with $2 or $10 in week one, $4 or $20 in week two, $6 or $30 in week three, and so on. You’ll save $2,756 with the $2 challenge or $13,780 with the $10 challenge.

Another variation keeps the weekly savings contribution at a fixed amount, which can be particularly helpful for smaller budgets. For example, you can put away $10 a week to save $520 by the end of the challenge.

No-Spend Challenge

Brunching on Sunday? Maybe not if you’re taking on the no-spend challenge.

Pick a week or weekend and only spend money on necessities during that time frame. It’ll give you a chance to be creative with your limited financial resources.

Instead of eating out, try a new recipe at home. Dig deep into your closet instead of buying a new pair of shoes. You set the time limit, so you can continue to save until you notice a change in your accounts!

Recommended: What is the 30-Day No-Spend Challenge?

Cash-Only-for-a-Month Challenge

A 2024 Forbes Advisor survey found that people tend to spend more with bank cards than with cash. A cash diet can help stave off overspending. Leave your cards at home when you go out and only take a cash amount that you’re willing to spend.

Spending stimulates the part of your brain associated with reward, pleasure, and addiction. Take this opportunity to look at the categories in your budget where you tend to overspend, such as entertainment or clothes, and set aside cash for those categories. You can only spend the cash allotted for those categories.

Recommended: What Is a Minimalist Lifestyle?

365-Day Nickel-Saving Challenge

If you have a nickel to spare, this challenge is feasible. On day one, put a nickel in a jar. On day two, put 10 cents in the jar. On the third day, add 15 cents. By day 365, you’ll be adding $18.25 to make a total of $3,339.75 in your savings. You won’t have to put away more than $20 in a day and $130 in a week for the entire challenge.

30-Day Budget Preparedness Challenge

It helps to have a map to find where you’re going. The same is true with spending.

Challenge yourself to a budget. First, download a budget planning spreadsheet template or a budget planner app. Then, go through the categories (housing, groceries, entertainment, etc.) and add the amount you must or would like to spend in each.

Knowing how much to spend before you go out can help improve your planning and control your spending. For example, if you allocate $400 a month to groceries, you can make sure you spend $100 or less a week. If you don’t spend what you allocated, you can put the surplus in your savings.

Money-Saving Challenge Potential Savings

Taking on one of these challenges can help you boost your savings by $1,000 to $10,000.

Goal-setting will help you determine how much you want to save. If your target is $20,000 in two years, try the biweekly savings challenge. If you want to have $1,000 in your account, take on the 52-week savings challenge for a fun, concrete way to start.

If spending less is your goal, a challenge can help you cut overspending habits. Setting up a budget and spending cash (rather than using cards) can help. Some challenges also help you monitor your finances if paying off debt is your goal.

Whatever your goal is, these challenges are practical journeys that can pay off.

The Takeaway

A money-saving challenge can be a fun way to build a savings account. It can motivate you to spend less and save more. It can also be a concrete demonstration of how small savings can add up.

One of the more popular options is the biweekly money-saving challenge. You can put away an amount you can afford, such as $4, and increase it by $4 each week. Or, you can set a goal of $5,000 and aim to set aside about $193 each week. It’s an easy plan that you can adapt to your situation.

After completing one of these challenges, you’ll find you have stronger budgeting skills, including saving money and prioritizing debt payoffs. These skills could help you make more fiscally responsible decisions. That way, when life happens, you’ll be better prepared.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Why do people complete money-saving challenges?

Money-saving challenges help people build toward a financial target, save for a special occasion, or pay off outstanding debts. They can also be a fun way to organize your monthly budget.

What is the 100-envelope challenge?

In this popular challenge, you number 100 envelopes from one to 100. Each day, choose an envelope and put in the amount of cash written on it. For example, you add $1 to the envelope labeled one and $100 to the envelope labeled 100. By the end of the challenge, you’ll have $5,050 in the envelopes.

What is the most popular money-saving challenge in 2026?

There is no top biller in terms of money-saving challenges. However, the 52-week savings challenge often comes up in Google search results.

How much money do you save with the 52-week challenge?

If you follow the original plan of starting with $1 in week one, then $2 in week two, $3 in week three, and so on, you’ll end up with $1,378. Other variations involve changing the starting amount. For instance, you can start with $5 in week one, adding $5 more to the amount each week until you save $6,890.

Can I complete a money-saving challenge on a tight budget?

Yes. Anyone can take on a money-saving challenge, even if their monthly budget is limited. Challenges can be adapted to your own means and needs, and you can start saving with as little as a nickel. You can also extend the length of a challenge so your goals are more manageable.

Photo credit: iStock/Rawpixel

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It’s an honor to be asked to be a member of a friend’s or family member’s wedding, but it also comes with a cost. Between buying/renting attire, attending prewedding events, and purchasing gifts, it can run around $1,900 to be a bridesmaid and $1,800 to be a groomsman.

Just one wedding can take a bite out of your budget, not to mention the familiar scenario of attending several weddings in one year. We’ll help you understand the expenses that go into being a part of the big day so you can prepare and budget well in advance.

How Much Does It Cost to Be a Bridesmaid?

While the average bridesmaid may spend $1,900 to be part of the bridal party, wedding costs vary significantly depending on the location of the wedding, the number of events, and the dress code. Before you agree to participate as a bridesmaid (or maid of honor), it’s important to consider what costs you may be responsible for.

Recommended: Average Cost of a Wedding in 2025

The Dress

A bridesmaid’s wedding budget includes the cost of their dress, shoes, and any accessories the bride has selected for them to wear. According to The Knot’s 2025 Real Weddings Study (which surveyed nearly 17,000 couples who wed in 2024), the average bridesmaid dress costs $128 per person.

You’ll likely also be responsible for any alterations, which can run from $75 to $150, depending on what adjustments are needed. While there are ways to minimize these expenses — such as by renting a dress — that decision is often not up to the bridesmaid and depends on how the couple is saving for their big day.

Hair and Makeup

Traditionally, if the bride requests that everyone in the party have their hair and makeup done in a certain style, she will pay for the expense. If, on the other hand, bridesmaids are given the option to opt in or do their own thing, the bridesmaids generally cover the cost of getting glammed up for the big day. The average cost of wedding hair for bridesmaids is $100, and you can tack on another $100 for makeup.

Bachelorette Party

Bachelorette parties have become more elaborate in recent years. Typically, every attendant pays for their own expenses while splitting the cost to cover most, or all, of the bride’s expenses.

According to The Knot, the average cost of a bachelorette party in 2023 was $1,300 per person. Of course, the cost of attending a bachelorette party varies significantly depending on the type, location, and length of the event. Celebrations that last one to two days cost, on average, $1,135 per attendee, while those that go on for three to four days can total $1,630 each. Also, the farther you need to travel to the event, the more you’ll need to spend. Guests who travel to the bachelorette party locale by plane spend an average of $2,000, while those who travel by personal car spend an average of $900 to attend the event.

Wedding Travel and Accommodations

For the wedding itself, the bridal party is typically expected to cover the costs of travel and accommodations, which can vary depending on the location of the event and length of stay (with members of the bridal party possibly needing to arrive early or stay late).

On average, wedding guests who need to travel outside of their town or city to attend a wedding spend between $840 and $1680 on travel and $630 on accommodations. You could end up spending significantly more if you cover travel costs for yourself and other family members or if the wedding involves long-distance travel. When the wedding is local, travel costs are likely to be minimal.

Recommended: Personal Loan Calculator

Gifts

Bridesmaids traditionally give shower and wedding gifts, which add to the cost of being in someone’s wedding. According to The Knot, the average bridesmaid bridal shower gift costs between $50 and $75, while the average bridesmaid wedding gift costs around $160. A group gift may allow you to spend less while giving something nicer than you could afford on your own.

What Does the Maid of Honor Pay For?

Being the maid of honor generally doesn’t cost more than being a bridesmaid, but it does come with additional duties and a greater commitment of time. The maid of honor assists with any tasks she can take off the bride’s to-do list. They may also be involved in planning prewedding events and communicating with other members of the wedding party.

In some cases, the maid of honor might plan the shower and help cover the costs. However, these days, the cost of a wedding shower is more commonly covered by the bride’s family.

What Do Groomsmen Pay For?

Groomsmen typically pay for their wedding attire, the cost to attend a bachelor party (which may include sharing the cost for the groom’s attendance), the cost to attend the wedding (which might involve travel and accommodations), as well as a wedding gift. Here’s a look at what it all adds up to.

Formalwear or Tuxedo Rental

Just as bridesmaids generally pay for their dresses, groomsmen often pay for their wedding day clothing. This might be a suit, a tuxedo, a shirt and slacks, or another type of attire selected by the groom or couple. Typically, the groomsmen’s attire is purchased or rented, but in some cases, a groom may let their wedding party choose from their own wardrobe, which can be a more affordable option.

If you need to rent a tux for the event, costs will vary depending on what style, design, brand, and accessories you’ll need to wear. On average, you can expect to pay between $150 and $300 to rent a tux for the standard period.

Bachelor Party

Groomsmen normally take part in planning the bachelor party and may cover their own costs and the groom’s. According to a recent survey by The Knot (which included roughly 500 respondents who attended, or planned to attend, a bachelor party in 2023), the average cost of a bachelor party is $1,400 per person. The survey also found that the average bachelor celebration lasts for two days, and roughly one-fifth of attendees fly to the party destination. Indeed, 29% of those surveyed spent $2,000 or more to celebrate in a major metro city.

For guests who drove or were planning to drive to the event’s location, spending was less, averaging $1,000 per attendee.

Wedding Gift

Groomsmen are generally expected to give the couple a wedding gift, though they are not expected to spend more on a gift than other guests do. According to The Knot’s 2024 Real Wedding Guest Study, wedding party members spend an average of $160 on their gifts. If you want to save money, consider chipping in for a group gift with other wedding party members.

The Takeaway

It’s not unusual for a bridesmaid to spend $1,900, including their dress, the bachelorette party, and gifts. Groomsmen may spend just a little bit less ($1,800) for a rental tux, the bachelor party, and a wedding gift. Keep in mind, however, that the cost to be in someone’s wedding can run much higher or lower depending on the location and style of the event.

If you haven’t saved up enough money to be in a friend’s or family member’s wedding in advance, there are better options than throwing it all on a credit card. Personal loans are designed to help cover life’s big events. SoFi Personal Loans offer low fixed rates, no-fees-required options, and a quick and easy online application process. Checking your rate takes just minutes.

FAQ

What do bridesmaids and groomsmen usually pay for?

Bridesmaids and groomsmen are typically expected to pay for their wedding-day attire and accessories, travel and accommodations, and a wedding gift. They might also cover the costs of bachelorette or bachelor parties, which often make up a large portion of the expenses.

How can I participate in a wedding while staying on budget?

You can keep costs down by splitting the cost of a group gift, limiting optional expenses such as professional hair and makeup, and choosing more affordable travel and accommodation options if needed. Planning ahead and discussing your expectations can help you manage your budget.

Does being the maid of honor cost more than being a bridesmaid?

Not necessarily. The maid of honor usually has more responsibilities and dedicates more time to helping with the wedding, but the role doesn’t generally cost more than being a bridesmaid, since most of the major expenses are the same, and wedding shower costs are commonly covered by family.

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