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How to afford an investment property on $5 a day

investment property

Most people believe that it takes a ton of money to buy a quality piece of real estate. They feel that it will cost a whole lot more money than they will ever be able to accumulate from their paychecks alone. While saving for a mortgage is tough if you are trying to accumulate a lump sum of money, it is a whole lot easier if you start by saving small amounts of money. Use these methods to make your dream of owning an investment property affordable.

Save small amounts of money every day

You may not think that saving a couple of dollars a day can help you to buy a property investment but it really can. You could cut out a cup of coffee a day or start eating lunch at home to save yourself five bucks or more a day. You might be surprised to know that an amount as small as $5 a day comes out to $1,825 a year. If you do this for three years then you will have saved almost $5,500 in cash. That is just in principal alone! That is a nice down payment to put down on your investment property.

Invest a small amount of today

The same $5 that you are socking away and saving can grow even higher than that $1,825 a day. If you took that five dollars a day in savings and invested $150 each month then your money would grow at an even faster rate. You could get guaranteed interest with a certificate of deposit or a savings account. You could also take the money and buy some short term government bonds. The amount of money that you have to put down on an investment property will continue to grow. Your mortgage broker will be shocked at the large amount of money that you saved just from some small cutbacks in your budget.

Earn an extra five bucks a day

If you do not want to cut out five dollars a day from your budget then another method you can use is to earn an additional five bucks a day. You can perform a simple task that nets you an extra $35 a week. It is incredibly easy to do this. You could do an extra hour or two of overtime on the job or you could start a little business that just makes $150 a month. It will take you under 10 hours a month to do this and you will have the satisfaction of knowing that all of the money you earned is going to an investment property.