Here’s a great Common Craft Video on saving money…
According to the video, it might take 20 years to earn enough for a down payment on a home. And in 20 years, the price of a how could go up so much that you still have not earned enough for that down payment.
The trick is finding a balance. Saving as much as you can, with a good interest rate, and then knowing when to pull it out to make that down payment!
When it’s time, pick a place that you can call “home” for a long time to come. Once you have bought that home – preferably with a 30 year fixed mortgage rate, don’t refinance! Let the price of your home rise. Remember, it’s a home – not just a house or investment.
Other ideas on adding to that saving account:
· When you go out to eat, subtract the same amount and put it in your savings account.
· Put your tax return back in the bank. OR occasionally double that amount by deciding to stay home and entering all that $$ in the savings acct.
· Don’t buy a new car once the old car is paid for. Remember, if it costs less to repair the car it’s cheaper to keep the one you have. You can take that same money you would use for a car payment and save it for a new car or for that now home.
· Consider cutting back some of the services you currently use. Do you need your current cable package or can you down-grade? How many minutes are you really using on your cell phone? Or can you cut the house phone and just keep the cell phone?
· When you get a raise, send the new money straight to savings.
Each family is different. Some can do a lot. Some can only save a little. Whatever you do, make saving a priority – even if it’s just for emergencies.
And have your kids watch this so they’re prepared when it’s their turn!
