Everyone has different things they want to do in their life, whether it is to start a family or get an education. There are all type of loans to get a house or fund your college, but sometimes saving money is the best way to make sure the money will be there when you need it. With so many federal programs being cut and lender restrictions strangling all forms of credit, it’s a good idea to start funding those dreams today with your own money. If you do end up qualifying for a loan later, those savings can go towards some other dream you haven’t achieved yet, either.
House Fund
This type of savings fund is important even if you qualify on your income for a mortgage. The issues is not whether you can pay the monthly payment, but whether you have 20 percent to put down as a down payment when you go to ask for a loan. If your family is growing and you foresee the need for a home to get your kid into a decent school district, it’s a good idea to set up a house fund now.
College Funds
This is another life goal that needs careful savings planning. There are a number of ways to save for your children’s education, but by using a 529 plan you can get some special tax incentives for saving, also. The plans are generally administered by a state or educational institution and can vary widely in their terms. So, check carefully before you save money in a plan that might not meet your life goals.
Retirement
At some point you will either want to or have to stop working. By carefully putting money aside from automatic withdrawals into a 401K or IRA program, you can have additional monies to retire on that will make your life much more pleasant later on. These programs are often tax-deferred, providing an easier way to take money out of your paycheck without missing it so much
