Everything Down, Nothing A Month
JP has heard about Dave's 100% down plan to buy a house, but where should he put the money if he decides to do that?
QUESTION: JP is 21 and makes $45,000 a year. He wants to know more about Dave’s 100% down plan to buy a house. Where should he put the money if he wants to do that? It depends on how long you want to save, according to Dave.
ANSWER: If you’re going to do it in less than 5 years, put it in a money market account. Live on beans and rice and pile money in there. You’re not going to be saving it long enough for the interest to be your good friend here. Your good friend is your low-key lifestyle. If you save over 10 or 15 years, use a mutual fund. But most people don’t do that plan for that long.