<prompt> Human: Im looking to over the course of 2-3 years save up for a down-payment on a home. What is the best way to save this money up? IRA to the limit and the rest in an index fund? Something else?  <response>: Start making a mortgage payment to yourself. Put it wherever the PF gurus suggest. Its good practice to see if you can handle the big nut every month, and it encourages you to save more if the payment is difficult. To determine how much your mortgage payment should be take the houses youve been eyeing or the type of house in the area you like and crunch the numbers so you know what a realistic payment would be. Principal interest taxes insurance association fees PMI. Now if your shopping for the right house for your income level, you should still have extra money to throw into savings on top of your predicted payment. If youre getting beat up by this savings plan then you need to consider increasing your income or decreasing your house expectations.20 is a great savings goal, but it may not be realistic for your area situation so shoot for 5-10 down in your initial calculation. Itll make your payment higher and encourage you to save even more.Game your brain and prepare for the new responsibility in a way that provides you a bigger wad when its time to throw down. 