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How Saving Now Can Help with Home Buying Later
Start saving now. These are three words that, for many, are easy to hear, but challenging to put into action. There’s a plethora of excuses. They range from, “I’ll start saving when I pay off my student loans” to “I’ll save once I have a higher income.” For those that have this mentality, those excuses never stop. The hard truth is that saving takes self-discipline and saving now is crucial in making large purchases later in life. For example, buying a house is one of the most financially life-altering decisions an individual may make, and if you are not prepared mentally and fiscally, the process may be difficult.
Save Now, Affordable Mortgage Later
Let’s start with the obvious. Putting money away for the future can be beneficial upfront. The sooner you start saving, the more money you will have to put into your initial down-payment. This will, in turn, make your monthly mortgage more affordable. This is one of the tangible rewards that comes with making that conscious effort to start saving well before the home-buying process.
Save Now, Long-Term Mindset Later
If you’ve ever heard the phrase, “it takes 21 days to form a habit”, then you know the importance of sticking with something until your mindset shifts, and it becomes a subconscious effort. Now, you might be wondering, “What does this have to do with finances?” Well, the same rule applies. It is all about having a long-term mindset. This mental shift will aid you in developing a savings strategy that can be extremely beneficial down the road. If you stick with saving without hesitation, not only will you have the money you need when it is time to make a big purchase, but this mindset will carry you through life in all avenues. This includes car purchases, big vacations, and so on. If you understand the importance of saving, you will save yourself a lot of financial turmoil down the road.
Save Now, Build a Better Budget Later
Along with a mindset shift, you will also most likely develop a shift in your budgeting tactics, as the two go hand in hand. Making regular deposits to your savings account will allow you to budget with what remains in your checking account. This typically aids in developing financial discipline. That being said, once you are paying a monthly mortgage, you will have a better financial grasp on saving vs. spending and will most likely have more control over those spending habits.
So, start saving now, to make your future home-buying process a breeze. Remember, when it is time to make that big purchase, Orlando Credit Union is here for you. We offer a variety of different mortgage options for all financial walks of life.