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Old 02-06-2020, 01:08 PM
 
17 posts, read 6,110 times
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I am sure this topic would have been discussed in the past, but if I may again ask: What is the best way of making money grow? Is it by buying house or saving in bank and get interests (not much :-(? I don't know about stocks and therefore stay away from it. Is there any other way people have the money grow?
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Old 02-06-2020, 01:25 PM
 
Location: Florida -
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While home equity is definitely a way to increase one's assets and indirectly, their net worth (far beyond a bank savings account), many seem to believe the home should NOT be considered an "investment." In fact, many even argue against putting a large amount of cash into a home (versus investing those funds elsewhere).

I suspect the rationale has a lot to do with the fact one's home is certainly not a highly liquid or flexible asset. However, IMO, equity appreciation is one of the best ways for young homeowners to 'grow' their financial ability to grow one's 'housing footprint.'

Except for security, bank savings account rates today are barely a step-up from trying to 'grow' one's money under a mattress.
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Old 02-06-2020, 01:35 PM
 
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Thank you. I am in early 40's (so I don't fall under young homeowner). Besides home buying, what are the other ways of growing money?
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Old 02-06-2020, 02:02 PM
 
Location: Chicago
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I laughed when I read your thread title because you do not save money through buying a home. However, after reading your post I realized that English may not be your primary language.

To GROW your net worth, housing is definitely one way of doing so. When you rent a home you are essentially paying someone else's equity. If you own that home you are paying yourself. With that said, owning a home is no longer a safe investment like they once were. Houses can depreciate and many people find themselves buying more home than they would typically rent. These things can put you behind the curve versus renting.

If you are keeping money in a bank and relying on the standard savings interest rate then you are literally losing money to inflation. You should definitely invest in safe mutual funds or index funds. You can easily invest your money into the S&P 500 or something and likely end up better off than just keeping it in savings.

If you don't know enough then educate yourself on the subject. It's not hard to learn the basics to investing. If you do want to own your home just keep in mind that they can be expensive and homes require maintenance and fixes. It's not a get rich quick scheme and as the other poster mentioned, it's certainly not liquid if you ever fall on hard times.
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Old 02-06-2020, 02:20 PM
 
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Yes, English is not my first language and I apologize for the grammatical errors :-( how do you invest in S&P 500? Do we need to go thru Fidelity or something like that?
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Old 02-06-2020, 03:08 PM
 
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Go to your library or local bookstore look online (Google) for beginner books on investing, like "investing for dummies", or "how to invest in the stock market", or "stock market investing for beginners", etc.
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Old 02-06-2020, 03:29 PM
 
Location: Omaha, Nebraska
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Quote:
Originally Posted by Basic2020 View Post
Thank you. I am in early 40's (so I don't fall under young homeowner). Besides home buying, what are the other ways of growing money?
Purchasing stocks (in the form of broadly-diversified mutual funds or ETFs), bonds, and rental properties are the easiest.
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Old 02-06-2020, 03:35 PM
 
Location: East Coast of the United States
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Originally Posted by Basic2020 View Post
I don't know about stocks and therefore stay away from it. Is there any other way people have the money grow?
There is not much to know about stocks that would be of any benefit for most people. The less you know probably the better.

Invest your money in an S&P 500 ETF and don't look back. That's it.
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Old 02-06-2020, 04:05 PM
 
681 posts, read 442,919 times
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Quote:
Originally Posted by Basic2020 View Post
I am sure this topic would have been discussed in the past, but if I may again ask: What is the best way of making money grow? Is it by buying house or saving in bank and get interests (not much :-(? I don't know about stocks and therefore stay away from it. Is there any other way people have the money grow?
Are you talking about buying a house for you to live in as opposed to renting a place for yourself?
Or are you considering buying a house solely as an investment while you live in some other place?
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Old 02-06-2020, 04:19 PM
 
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Investing in real estate depends on timing, areal market fluctuations and whether it's a "depressed market", "stable market" or "hot market".

In a hot market, you can pick up a "fixer upper", put $50k or so in it and then sell at a much much higher price. If the market is going to be hot, you can buy low and sell high when the value goes up.

That's one way another way to invest in real estate is to pick up a dilapidated fixer rental, invest some money and rent it out depending on the rental market. Then you would evaluate not only the property value, but it's rental value as well.

I own a duplex in another state, built for cash in 1985 brand new. Its return s are about every other year as profit, the opposite year expending the income. New roof, new ac system, new appliances etc can eat up profits easily.

We will pick up some rentals for extra retirement income. We'll pick up a fixer, invest to what we here call builder grade level and rent to stable tenants.

Good luck in your endeavors.

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