Fruiting Finances: How Investing Can Help You Save for a Home
Thursday, April 26, 2018, 6:00 PM | Leave Comment
A home is one of the largest purchases a person will make in their lifetime.
A home is no easy purchase and it comes with a lot of maintenance. However, it is an excellent investment to make.
Most financial advisors and experts encourage people to save 10 to 20% of the home’s cost and use it as a down payment.
Additionally, you’ll need money for closing costs, repairs, moving and decorating. Overall, a home purchase is no inexpensive experience. It can seem insurmountable, but with some diligence and strategy, you can save for a home.
Consider these ways you can utilize the power of investing to save for a home.
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Relatively Passive
If you choose specific investment strategies like swing trading, you can do your research, create your strategy and let the market do its thing. You don’t have to sit in front of a computer for hours on end.
In fact, there are many people who only spend a few hours every week on major investments.
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Quicker Process
While there’s no get-rich-quick strategy to save up for anything, the right investment has a lot of potential to turn into large profits in a short amount of time. It all depends on how much you invest and where you invest it.
When you’re applying for a mortgage loan, mortgage lenders like to see that you have a certain amount of money in the bank already. They also want to see that you have consistent income streams. Investing can provide this for you.
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Convenient
There’s a convenience involved with investing. When many people are working to save for a home, they tend to lean toward the option of picking up multiple jobs. While it’s a noble effort, it’s not the only way.
You don’t have to pick up a delivery route, extra patients or more freelance work if you don’t want to. Instead, you can stay home and invest in the comfort of your pajamas.
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Measurable
When success coaches talk about making smart goals, many of them are referring to a specific acronym. The term “SMART” stands for specific, measurable, achievable, realistic and timely.
Investing is a great option to help you save for a home because it is something that’s measurable. You know that if you put a specific amount of money into the market or another investment, you’ll get a certain amount back. You can measure the costs, potential consequences and more.
Once you have all of your research and are ready to make an investment decision, you can measure it to predict how much you’ll earn in profits to put towards saving.
These tips will take you far and if you decide to choose the option to invest, understand that it’s a skill that you’ll be able to use for the rest of your life. If you make good decisions with your money, you’ll be able to experience the benefits of investing for the rest of your life.
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Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.
