Make sure your money is available when you need it
isn't necessarily where it will grow the fastest — it's where the money will be available when you need it.who says establishing your time frame is the first, most important part of establishing a savings plan for a down payment.
She also says you don't need to be overly concerned with diversifying your savings in this case; it's easier to keep them in one place, and the returns on cash-like investments don't tend to be terribly different. When it comes to buying a house, the fun parts — like an opportunity to decorate a brand-new place — are often overshadowed by the not-so-fun-parts — like saving up for a down payment., says it's time to make a strategy for saving.
"Steer away from holding your money in something that would not be available when you may need it," she said."It's better to give up expected investment return to have the money available when you want to buy your house than to miss out because you invested too aggressively, or your money is not liquid.""Typically, if you've already decided you want to buy a house, you probably want to buy it within a few years," said Stanifer.
She also advises steering clear of diversifying the money that you're saving up for a down payment into too many different types of accounts."There likely isn't too much of a difference in expected investment return from one cash-like investment, like money markets or CDs, to another, so I recommend not over-complicating it," she said."Also, when you're ready to make a down payment, it will be easiest to do from one account.
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