In your 20s and 30s, you have a lot to juggle – especially financially. There are the fun expenses, like your next vacation and a fancy new handbag. And then there are the not so fun expenses like student loan payments and credit card bills.
With all that is going on, planning five years out is difficult enough. So chances are great that planning for your retirement isn’t anywhere near the forefront of your mind. But is should be! Because it is so much easier if you start now. If you wait until your 40s or 50s to begin planning for your retirement, the lifestyle changes you’ll need to make will likely be substantial.
Buying a Home Helps You Build Equity
One of the things you can do in your 20s or 30s to prepare for retirement is buy a home. Why? Because consider your monthly rent check. You pay it and it’s gone. With a mortgage, each payment helps you build equity – essentially allowing you to keep a few of those hard earned dollars in your pocket.
Buying a Home Keeps Your Living Expenses Consistent
Rent, especially here in the Seattle area, will do nothing but continue to rise. And, it often rises faster than your paycheck. With a fixed-rate mortgage, your monthly payment stays the same throughout the lifespan of your loan. So when your paycheck increases, those extra funds can be used as you see fit.
Buying a Home Can Help Increase Your Net Worth
In most instances, the value of your home will increase over time. This means, if and/or when you’re ready to sell, you could sell your home for more than you paid – and make a profit.
Are you ready to explore your home buying options? The first step is to get pre-approved. Give me a call today to get started!
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