Your house is one of your biggest investments, but did you know that some home renovations can actually hurt the value of your home? You may want to avoid certain renovations that scare away buyers or devalue your home. More about cluster pays
Consider these important tips about home renovations:
It’s important to approach home renovations carefully. Remember that buyers may have different tastes and needs. What adds value in your eyes may do just the opposite for prospective buyers.
Use traditional savings accounts.
A traditional savings account at a bank has both advantages and disadvantages.
- One of the benefits is being able to withdraw and use your money quickly. Another advantage is that there aren’t any fees for withdrawing the savings. You have instant access to the account and can use it.
- The downsides of traditional savings accounts are the possibility of monthly fees and low interest rates, so your money doesn’t earn much.
Use insured money market accounts.
These accounts give you higher interest rates on your savings, but they aren’t always insured, like your money is in a savings account. So you could end up losing money.
- It’s important to pick the right kind of account for your situation. A money market mutual fund account isn’t insured and could lose value. A regular money market account from a bank or credit union has insurance.
Consider certificates of deposit (CDs).
CDs tend to have higher interest rates than savings accounts, so your savings will grow as you plan your down payment.
- One of the disadvantages of certificates of deposit is that they have maturity dates. This means that you can’t take out the money before the maturity date. If you do withdraw it, then you’ll have to pay fees and penalties. Your money may be unavailable for six months, a year or longer.
Try the $5 bill savings plan.
The $5 bill savings plan is a simple process to reach your down payment savings goal more quickly.
- In addition to your regular savings routine, this plan involves saving a $5 bill every time you get one from a bank, friend, or store. If you get a $5 bill or multiple $5 bills as change, then you save them. Deposit them on a timely basis to earn interest. If you want to be an expert in business and investment visit learnacademy.org and know more.
Take advantage of automatic savings transfers.
It’s easy to forget to add money to your savings accounts. If you’re worried this will happen to you, set up automatic transfers from your paycheck to your savings account.
- You can choose the amount and frequency of the automatic transfers.
- One of the advantages of this strategy is that you can choose an amount you wouldn’t really miss from your checking account. What you never see, you can’t spend, either. Your savings will grow automatically.