In order to create a budget, you must take into account all of your monthly income. Look at your basic needs such as food, bills, rent, childcare, utilities, etc and deduct those expenses from your total monthly income. How much do you have left? Do you know where your money is really going every month, Are there other expenses? You should keep a record of everything you spend for a full month. (carry a small notebook with you) This will give you a great idea of where you can cut back to begin saving for a down payment. After you figure out how much your spending, you must ask yourself, what are you really willing to sacrifice to get this home. Are you really using your gym membership, are you utilizing coupons to save money, can you get your books from the library instead of buying them, etc. Set a budget that you can realistically follow. You cant possibly deprive yourself of everything you love and not expect to fall off. Leave yourself some wiggle room otherwise you will give in to temptation. Talk with your family and friends about what your doing so that they can help you stay on track. As you see your savings grow monthly it will motivate you to stick with it. Your that much closer to your dream home.