Best way to save for a house?

[Mariana2012 89]

Hey guys.. How did you save your money for a down payment of a home?

Is there any better way than simply putting it in your savings account? CD's don't seem to give much return these days...

Also, have any of you use a loan from a personal IRA to pay the deposit?

We are planning on buying in about 5 years. I want to make the money we save until then grow if possible.

Edited October 7, 2013 by Mariana2012

[ricnally 259]

Get a financial advisor, like Edward Jones, or one at your bank.

[Dbkrantz 16]

If you are interested in saving, I would suggest you have a look at a budgeting software called YNAB. I have just started using it and I love it.

Basically, it's a budgeting software and you can decide to allocate a couple dollars every month that you will transfer into a savings account. Although they don't necessarily allow much reward, you will have time to build up savings over the 5 years if you put a little away each month.

One tip I read somewhere: if you want to know if you will be able to afford the mortgage of your house, plan how much the mortgage payments will be and take out what you pay for rent and set the rest aside in savings. Example: if mortgage is 1,000 dollars a month and rent is 500 dollars a month, put the 500 dollars a month aside. Do this for 6 months and if your quality of life has not changed, you will be good!

[Mariana2012 89]

If you are interested in saving, I would suggest you have a look at a budgeting software called YNAB. I have just started using it and I love it.

Basically, it's a budgeting software and you can decide to allocate a couple dollars every month that you will transfer into a savings account. Although they don't necessarily allow much reward, you will have time to build up savings over the 5 years if you put a little away each month.

One tip I read somewhere: if you want to know if you will be able to afford the mortgage of your house, plan how much the mortgage payments will be and take out what you pay for rent and set the rest aside in savings. Example: if mortgage is 1,000 dollars a month and rent is 500 dollars a month, put the 500 dollars a month aside. Do this for 6 months and if your quality of life has not changed, you will be good!

Thank you for your answer but it is not quite the answer I was looking for. My question is how do I make the money I save GROW?

You save 4-5 years quite a bit and that money ideally should make some babies but how?

[agnesb 47]

Maybe this thread will help a little bit http://www.visajourney.com/forums/topic/444763-advice-on-investing-money/?hl=%2Binvesting+%2Bmoney#entry6411094