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Originally Posted by Bamrak
-Don't invest in single stocks. ( enron or mci anyone?) Invest in growth stock mutual funds.
Dont buy a home on a ARM... the only way the rates are going now is up. On the same note, if you cannot put 20% down, keep renting as you really aren't ready to buy a house.
Never borrow against your home. Why would you risk your HOME against some credit card debt that you bought pizza with?
If you decide to invest, find someone locally, yes- not on the internet, that will sit down with you and teach you. Make them show you why it is good to invest in that genre of investing.
If you really wanna be wealthy, why not act like it? Check out this book:
The Millionaire Next Door
You'll find neat things like:
Most millionaires don't have, and have not had in many years, car payments.
Most millionaires do not spend more than the average person for things like clothing or shoes.
Most millionaires do not invest in single stocks, they diversify in mutual funds. |
One thing about that 20% down. If you want to buy a $150,000 house you need $30,000. Who has 30 grand sitting around? I didn't. You have to take into account that homes are apreciating every day. Even when the bubble bursts, homes will still appreciate. The major markets like Seattle, LA, New York are going to be hit the hardest when the bubble bursts. Small towns aren't going to be hit as hard. But, if you save and save and save that 30K and it takes you 5 years to do it, in that 5 years that same house has appreciated to say, $170,000. You have 30K in had but you now need $34,000. In other words, if you don't outsave the average rate of appreciation, you've never save that 20 percent. There are 80/20 loans that you can do to get into a home and avoid the PMI payments. You'll still get to deduct interest and property tax. If you already have 20% great. Use it. But if you don't there are ways to get into a home versus throwing money away on rent while youre trying to save 20% over a number of years.