personal finance

How to Start a House Buying Fund

I have looked all over the internet for information on buying a house.  It has become a dream of mine to own a house.  I don’t know when I began to think it was something I wanted to accomplish in my twenties, but it was probably during high school. Of course, life got in the way.  I have moved all over the country since college and haven’t found a place to “grow my roots”.  I hadn’t even started saving for a house until recently.

Luckily, between Pinterest and blogs there is a ton of information.  I have found so many tips on saving for a down payment and buying when the time is right.  What I haven’t been able to find is where exactly I should put the money for a down payment.  Without being able to figure that out, I didn’t start saving for a house. I could have started almost 3 years ago and I haven’t begun.  That could have been a couple thousand dollars if I had been diligent.  

I looked into putting it into a Betterment or Wealthfront account with safe balance of stocks and bonds, but decided against it.  I want to use that money for a deposit within the next 3 years, and it’s risky to invest. I decided on using Ally savings account.  There are no fees for what I use the account for and I earn 1% interest.  

What I learned was the best way to start a house fund, was to JUST START. I opened my fifth Ally savings account and titled it house fund.  I cancelled some subscription services (see my last article) and put my first $35.  Right now I’m only contributing $35 a month, but as I cut back on my budget it’s going to grow exponentially.