How to save for down payments? : Part – Three
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How to save for down payments? : Part – Three
By
January 20,2017

All the things which make us successful, we don’t hesitate asking for financial help from external sources. These things, these possessions come in the form of homes and vehicles. These external sources come in the form of home and car loans. Although, these loans cover a huge amount of the actual cost (80% -90%), we still need to pay a part of it through our own pocket, and for some people even that can be a substantial amount. So in order to make it more convenient for us, we pay majority the sum as down payment.

Make use of your talent – Everyone has a hobby and is good at it. If you want that extra fund make sure that you are able to make money out of that hobby. As the famous Joker said in Batman, “If you are good at something, don’t do it for free”. If you are good at something then there is no harm in getting the extra cash from it. From music to teaching photography, there are endless opportunities to earn from your hobby and create funds for your down payment.

Don’t spend too much on your rented home – A rented home is your temporary dwelling place where you won’t live forever. Hence, it is important that you don’t go overboard while making expenses on your rented home. Curb those luxury expenses and use that money for your down payment. Also, if you feel that the rent of the place where you are living currently is high, you can always move in to a smaller and more affordable place. Saving that money on rent at the end of month, it can go a long way in saving for your down payment fund.

Invest your money! – One of the worst things which you can do to your money is to stop it from growing. That saving account in your bank will definitely keep your money safe, but it will not let it grow. Always invest your money so that you can use it in times of emergencies. From investing in mutual funds to making a fixed deposit, you can make profits and use them later for down payments.

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