3. Coming Up…Two Big Purchases! Having a place to live, and a way to get from home to work are both necessary. In the near future you will be facing two major purchases: a house and a car. You must weigh the impact of these “big ticket” items on your overall financial strategy!

4. The Scoop about Cars CAR A car is a depreciating asset! It declines in value as it ages. Most of the money you put into a car you will never get back! Put off buying a car until you absolutely need one, and don’t spend more than it takes to get a good safe vehicle! From the minute you buy a car to the minute you sell the car, it is a drain on you income. No other major purchase depreciates as quickly as an automobile. No matter how beautiful or expensive the brand new car was, it’s a used car the minute you sign the papers and drive it off the dealer’s lot. The value of a car depreciates 50% every four years!

5. The Scoop about Houses HOUSE A house usually appreciates in value through the years. Unlike a car, you can typically sell a house for what you paid for it (or more) at any point in time. The money you put into buying a house you will likely get back when you sell it – you will probably even get more! Homeownership can make an important positive contribution to your long-term investment strategy. The house where you and your family are living is an investment that is increasing your parent’s wealth. All the money they put into it they will likely get back (plus more) when they decide to sell it.

6. What Does This All Mean? Don’t spend a lot on a car – it’s a waste! Don’t rent a house or apartment – it’s a waste! Make a homeownership part of your long-term financial plan. – The investment skills you have learned in this course can help you acquire the money for a down payment. – Pass on the new car…buy a used car…invest the difference so you can afford the down payment on a house when the time comes.

7. It Is This Easy… $10 each week invested at an annual rate of return of 12% yields $21,648.00 in just 15 years. (And you only invested a total of $10 x 780 weeks  $7,800) $15 each week under the same conditions will grow to $32,473.00 (That’s a 10% down payment on a $300,000 home!) Yes, it is that easy!

8. And It Gets Even Better… You work hard for your money! Why not reduce the amount the government can take! Protect it! Tax Advantages of Homeownership – The interest you pay on your mortgage can be deducted from your gross income in determining your federal income tax. – The property taxes on your home can also be deducted from gross income in determining federal income tax.