Are you saving for your future? Real estate can be a very good way to secure your financial future… if done right !
When most people think about that question, they usually think about how much money they have in their savings or retirement account. I think it is really hard for people to put money in the bank and leave it alone. It is very hard to “save” for the future that way.
There is a better way to save, which still requires some restraint. Buying a home… and NOT REFINANCING. Once you buy your home, leave it alone… let the equity build. You are going to need it one day, when you are older. Is social security going to be there for you? If so, is it enough? Probably not.
My way is a simple and easy way to save – if you keep your hands out of the pot! Another thing people don’t think about doing is paying an additional $100 per month towards the principle on their mortgage.
Instead of putting $200 in your savings account each month – take $100 of it and include it with your mortgage payment as principle only and at the end of 10 years you will have brought your loan balance down by $12,000. Wow, that is money in the bank – that you can’t touch until you REALLY need it.
How many of you can have $12,000 in the bank and not touch it?
Be honest… not that many. Don’t let your money get away from you !