Many people dream of owning a home, but far fewer are willing to take the steps needed to get there. According to Harvard University’s State of the Nation’s Housing report, more Americans than ever want to be homeowners, yet many don’t feel financially prepared — especially millennials.

This generation has delayed marriage, starting families, and buying homes, largely due to student loan debt and rising rents. But interestingly, they may also be one of the best examples of how to save toward major life goals — because that’s exactly what many of them are doing.

One growing trend since around 2006 has been multigenerational living. I’ve written about this before, and it plays directly into saving for a home. Quite simply, there’s no better way to save money than reducing or eliminating rent altogether. Beyond moving back in with parents, many buyers are downsizing, choosing smaller apartments, cutting cable, eating at home instead of ordering out, and — most importantly — actually saving the money they’re no longer spending.

That last part is key. Cutting expenses doesn’t help if the extra money just disappears elsewhere. One of the easiest ways to make saving painless is automation. If you have direct deposit, setting up automatic transfers into a dedicated “home savings” account can make a huge difference. When money moves automatically, you’re far less likely to miss it — and far less tempted to spend it.

Saving money is only half the equation. Preparing to buy your first home also means paying down debt and cleaning up your credit — or establishing it in the first place. Making consistent, on-time payments on student loans or car loans is one of the strongest ways to build credit. Paying off credit cards while keeping the accounts open can also help, as revolving credit (even unused) plays a role in your score.

It’s also important to follow up. Don’t assume negative items will be removed automatically once paid. I’ve seen many buyers surprised by lower scores simply because they never confirmed old issues were actually cleared from their report. Credit card companies aren’t there to protect you — you have to be proactive.

If you have little or no credit, or need to rebuild after a major life event like medical expenses or divorce, there are still good options. Secured credit cards and small loans through local credit unions can be excellent tools. Even a small $500 loan, paid back consistently, can establish quality credit. Store cards can also help — I’ve seen buyers rebuild credit this way when traditional lenders wouldn’t approve them.

Sometimes creativity is required. I once worked with a family where a parent took out a car loan in their name, with the child making all payments on time. The result was excellent credit history for the buyer — without unmanageable payments or high interest rates.

With smart saving habits and a thoughtful approach to credit, buying your first home becomes far more achievable than it may initially seem. And when you’re ready to take that step, I’d love to help. First-time buyers are some of my favorite clients — there’s nothing better than watching someone turn a long-term goal into a reality.