How to save up for a home even during inflation
It is possible to still save money during tough economic times. It may not be the easiest feat to accomplish but it is possible. I acknowledge that saving for your first home or a new home is a substantial investment for many. Once closing costs, inspections, earnest money, and all the things are factored in, the amount can a pretty penny. Having an idea of what you desire and an understanding of your personal financial situation will enable you to make smart savings decisions for homeownership.
I recently co-hosted a workshop called Savings Strategies for Homeownership with two other faithpreneurs. These ladies and I decided to collaborate so that we could let others know that saving for homeownership is possible even during economic uncertainty. We also discussed wealth-building through homeownership. My portion of the presentation provided attendees with information about financial stewardship and how to build the foundation for generational wealth for their families.
Why Real Estate is Still a Viable Path to Wealth
Most millionaires become wealthy through real estate. From what I have observed, no matter how the market ebbs and flows, real estate always rebounds as a viable way to build generational wealth. In the most practical sense, people will always need a place to live and a place to conduct business.
I came across this article, Real estate is still the best investment today, millionaires say (cnbc.com) published on October 1, 2019. This article highlights various millionaires who share their wealth-building journey.
“Real estate is a bankable asset, so you can always leverage it.”—Dottie Herman, CEO of Douglas Elliman, a real estate brokerage empire with more than $27 billion in annual sales.
Saving for homeownership
Saving for homeownership is highly recommended to anyone buying their first, or even second home. The number of fees needed to complete the transaction can easily catch unsuspecting families off guard. It is important to educate oneself and work with trustworthy professionals during the home buying and real estate investment process.
Practical first steps
Some practical first steps include knowing your numbers and understanding your family’s needs. Having a deep understanding of your family’s financial landscape and ecosystems enables informed decisions. Start by creating a budget. It can always start out as a basic budget and evolve over time.
Next is understanding your family’s needs. What type of home or investment best fits your needs. Start going to open house sessions or even engage with real estate professionals to better understand costs within a specific market.
Budget Plan with Me Coaching Session
Did you know I offer “Plan with Me” Coaching sessions which also include budget planning?
During these sessions, I help clients to plan for their financial future by establishing attainable goals and creating a roadmap for financial freedom and success.
“Budget Planning is the foundation of generational wealth” – Debraenetta Howard
Savings strategies during economic uncertainty
Once you know what you are saving for, it’s time to start saving. Here are some simple ways to save money during inflation and times of economic uncertainty.
- Cut Cost
- Shift savings to higher yield accounts
- Invest in low-risk investments (if you are knowledgeable and risk-averse)
- Increase income
- Practice minimalism
There are other ways to save as well. However, getting more granular will depend on each individual family. After all, personal finances are personal!
To Wrap it UP
Homeownership or investing in real estate is still a very viable path to financial success. Many millionaires become wealthy through real estate and it still holds true today. By being strategic and practicing financial stewardship, families can have the home, or homes, of their dreams.