A 20% down payment is a great savings goal, but it's also a lot of cash. Let's say you want to buy a home that costs $250,000. You'll need $50,000 in cash to put down. That's no small number. But you can make it happen in the near future. Here's how you can work to build a down payment in one year.

Raise a down payment in one year

To build a savings fund of $50,000 in 12 months will require you to set aside $4,167 per month and take some extreme measures to make it happen. First, look at every single dollar you can cut from your current spending. Here are a few ways to aggressively trim your expenses.

Move in with a friend or family member to slash your rent.

Sell useful but not strictly necessary assets.

Get rid of every nonessential expense, no matter how inexpensive it may feel.

Downgrade essential services for cheaper options.

Perhaps you can reduce your insurance coverage and drop the cost of your monthly premiums. Other places to consider: your cellphone plan and your groceries. Your new rule should be "If I don't need to buy it, I won't." Remember, you need to bank $4,167 every month. Many people's total monthly budgets don't add up to the amount you're trying to save!

In addition to saving, you'll probably need to consider earning more to meet your goal. Take on additional work or get a second job to generate more income. While this might not be sustainable for years, doing so for 12 months could give you the boost you need to save that $50,000.

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Information obtained from Trulia