Now would be a great time to have some money in the bank wouldn’t it? Consumers are in an unprecedented time of re-balancing, realigning, and deleveraging. Are you among them? In February people were saving an average of 4.2% of their income. That’s great news! I can remember just a couple of years ago when people were “saving” a negative amount. This was facilitated primarily by people spending equity from their homes. Now, that’s mostly come to an end and people are trying to conserve. Let me give you 3 ideas on how to save. If you’re renting, you can likely purchase a home for less overall cost per month than what you’re currently paying in rent. It’s true! When you consider the tax benefit of owning a home the numbers almost always work in favor of owning. In addition, if you haven’t owned a home in the last 3 years you’ll get an $8,000 check from the Federal Government simply for purchasing a home; that certainly helps you save money!! If you’d like a personalized rent vs. own for you or someone you know, please call or email me and I’ll prepare it for you. As I mentioned in last weeks newsletter, today’s interest rates mean that a person can borrow (roughly) $30,000 more for the same payment they would have made a year ago! Of course you can also get the same loan size but pocket the savings of $155 a month! I talked to an individual this week that refinanced his home about a year and a half ago. He’s a little hesitant to refinance again because he just “spent” all that money a year and a half ago and his current house payment isn’t an undue burden on him. However, his interest rate is currently 6.625%. He can refinance to an interest rate near or below 5% and continue to make the same payment each month. If he does this every month, he’ll reduce his loan term to just over 20 years. That means he’ll cut 8.5 years from his mortgage (eliminating roughly $86,000 in payments), that’s saving money! Obviously, there are ways to save money whether you’re renting or you already own your home! If you’re thinking of buying a home, please reference my blog by clicking the link in the upper left corner of this email. There you’ll find all of my previous newsletters, including last week’s which indicates that homes are more affordable now than they have been at least since 1970. No longer just a cliché, “Now is a great time to buy a home!” really is true!