<prompt> Human: Good morning rpersonalfinance!Im looking for advice on how to best accomplish my goal of purchasing a home within the next 2-5 years while continuing to be financially responsible and saving for retirement, etc. I am 24 years and just began my career full-time about one year ago, meaning that I can hopefully expect an income increase in 2-3 years due to experience maybe this is wishful thinking. I consider myself to be pretty financially conscious and thus I want to accomplish this in the most efficient least wasted manner possible. I would prefer to purchase sooner rather than later, but only if it will be financially advantageous to do so. I consider my personal finances less variable and risky than most: I have reasonable job security, no dependents, rent, and do not maintain a vehicle. In theory this means that my unexpected expenses are lower than average. In any case, on to the specifics:---Goal:The properties I am interested in are in the 200k-250k range, specifically newer 15 years old housescondos in midtown Atlanta.Income:Gross Income: 60,000Net Income: 41,000Deductions include maximum matched 401k contribution, mass transit my only transportation expenses, and finally taxes. I have relatively high job security with relatively low income growth potential in my current position.Debt:0Zero. Zilch. None. I made it a point to tighten my belt and pay off my student loans during my first year employed.Expenses:Monthly Average: 1,250 including 750 rentutilitiesYearly Average: 15,000These figures have outlying expenses like loan repayments, furniture, and move-in costs removed.Savings:10k cash in the bank.I consider 5k of this to be my emergency fund 4 months - reasonable given my job security and knowledge that cutting back could make it last 6. The other 5k is my current savings toward this goal.Im looking for a better way to invest this. I am considering I-bonds, but would like to discuss this further below.Retirement:10k in my 401k. No IRA yet.This includes 6 contribution and 9 employer match. I believe I could contribute more to this, but I would prefer to put the extra money toward my housing goal. Willing to take advice onamend that decision.---So my overall questions are as follows:From what I have read, I-bonds seem to be the preferred medium for emergency funds. I know that CDs are another option, but I havent been able to find CDs with better rates. I do have access to CDs via a credit union. Am I missing something, or should I just grab a 5k I-bond and be done with it?For the actual savings toward the house purchase itself, what would be the best way to invest this until it is time to buy? Should I just get more of the above since it is relatively short-term?Once I have the down-payment saved up estimating 40k to 50k, should I aim for a more aggressive mortgage 15-20 yr or should I just get a 30 yr and hope to pay extra as I go?Finally, on a related side note, are my retirement investments currently totaling 9kyear sufficient for this stage of my life? I intend to divert all extra funds into them after making the home purchase, but would there be a significant benefit from investing some extra in them now and pushing my home purchase back to the far end of my window 5 years? I would think that having a higher down-payment and smaller mortgage would be better, but thats just a guess.Bonus: Does anyone have any additional advice for someone in my current situation, even if it is not directly related to my goal?Assistant: I am interested in are in the 200k-250k rangeandGross Income: 60,000 Net Income:This doesnt work out. You should ideally target a home that is 2.5-3X your annual income, with a 20 down payment. In your case that would be no more than 180k on a home. 200 would be the absolute maximum I would go, since you have no debt.Am I missing something, or should I just grab a 5k I-bond and be done with it?The only thing you are missing with an I-bond is that you cant touch the money for the first year. If a good property came along and you needed the cash, youd be stuck. You do pay a 3 month interest penalty after that first year if you cash out. I-bonds are also subject to market changes, so the rate of return goes updown.For the actual savings toward the house purchase itself, what would be the best way to invest this until it is time to buy?You dont. Put it in an online high interest savings account paying out .75-1. You dont want to gamble with this money.Once I have the down-payment saved up estimating 40k to 50k, should I aim for a more aggressive mortgage 15-20 yr or should I just get a 30 yr and hope to pay extra as I go?In your situation, I would put 20 down on a house that is no more than 3X your annual salary, with a 15 year mortgage. You have no other debt, so the payment shouldnt be much of an issue.are my retirement investments currently totaling 9kyear sufficient for this stage of my life? Youre saving 15 of your gross into retirement. Thats better than most people. Its a hard question to answer without knowing your age though. If youre in your early 20s, your fine. If youre 50, we have a problem. I intend to divert all extra funds into them after making the home purchaseYou need to divert some funds into a house emergency fund after the purchase. This sits along side your regular emergency fund. Repairs will come up and you need to prepare for that.but would there be a significant benefit from investing some extra in them now and pushing my home purchase back to the far end of my windowNo one can answer this. You have no idea what investments will do in the future, nor what home prices and interest rates will be 5 years from now.I would think that having a higher down-payment and smaller mortgage would be better, but thats just a guess.Thats generally the case.Does anyone have any additional advice for someone in my current situation, even if it is not directly related to my goal?Continue to do what youre doing, maxing out your Roth IRA and saving what you can to target a 20 down payment. Do not rush into buying a home. In fact, you want to think long and hard about exactly why you want to purchase a home. Are you sure its right for you?Human: This doesnt work out. You should ideally target a home that is 2.5-3X your annual income, with a 20 down payment. In your case that would be no more than 180k on a home. 200 would be the absolute maximum I would go, since you have no debt.In theory Im hoping that the purchase would come alongside an income increase, since I started my career full-time only a year ago. That sounds like a very good rule of thumb that I will keep in mind, though.The only thing you are missing with an I-bond is that you cant touch the money for the first year. If a good property came along and you needed the cash, youd be stuck. You do pay a 3 month interest penalty after that first year if you cash out. I-bonds are also subject to market changes, so the rate of return goes updown.There is a 0 chance that I would be looking to purchase within the next year. Im aware that the I-bond rate changes in OctoberNovember - not sure whether I want to invest before or after this years rate re-calculation. Any input there, or is it anyones guess? Youre saving 15 of your gross into retirement. Thats better than most people. Its a hard question to answer without knowing your age though. If youre in your early 20s, your fine. If youre 50, we have a problem.Im 24 and everything you see above is after one year of work and paying off student loans. Ill edit the OP to clarify this - thanks for pointing it out! You need to divert some funds into a house emergency fund after the purchase. This sits along side your regular emergency fund. Repairs will come up and you need to prepare for that.Thats the first I have heard of this, but it makes sense. How much would the target amount be? Continue to do what youre doing, maxing out your Roth IRA and saving what you can to target a 20 down payment. Do not rush into buying a home. In fact, you want to think long and hard about exactly why you want to purchase a home. Are you sure its right for you?Thank you for your advice. I will of course still be considering this question over the next few years, but I would rather have money saved up and decide not to buy and then invest it elsewhere than not save and later regret it.  <response>: In theory Im hoping that the purchase would come alongside an income increase, since I started my career full-time only a year ago. That sounds like a very good rule of thumb that I will keep in mind, though.Most lenders these days are going to want to see 2 years of stable income as is, so its good that you are waiting. The 2.5-3X rule is just a guideline, but its one that I suggest to nearly everyone looking to purchase, and its one that I adamantly follow myself. You dont want to be house poor.There is a 0 chance that I would be looking to purchase within the next year. Im aware that the I-bond rate changes in OctoberNovember - not sure whether I want to invest before or after this years rate re-calculation. Any input there, or is it anyones guess?Id go ahead and do it now. The rate will adjust either way.Im 24 and everything you see above is after one year of work and paying off student loans. Ill edit the OP to clarify this - thanks for pointing it out!Keep it up then. 15 of your income at your age is good.How much would the target amount be?Enough to cover your homeowners insurance deductible, along with a few thousand bucks IMO. If your AC goes out, that could easily be a 5000 repair. 