How to Save for a Down Payment on a Home and fund a Roth IRA

How to Save for a Down Payment on a Home and fund a Roth IRA

Saving for the future is something that you probably know that you need to do, but may not be sure how to go about or where to find the funds to invest. The good news is that I am going to show you exactly how you can save for a downpayment on a home and fully fund a Roth IRA! It is as simple as finding and saving $29 a day!

 

How to save for a down payment and a roth IRA

 

One key thing to keep in mind is that every dollar has an opportunity cost.

An opportunity cost is the benefit that you miss out on when choosing one option over another.

 

 

Saving is the Core of Investing:

 

The government gives you incentives for reinvesting your money… because you have to sacrifice some of the things that you like today, in order to save so that you can have funds to invest with.

Saving money can be hard, but it can also be easy…

My personal goal is to achieve financial freedom. I’m not interested in a huge house with a lavish car.

That’s how you get stuck in the rat race.

If you are renting a large home, just remember that your rent payment is someone else’s investment cash flow and mortgage payment.

Remember, the more house you have, the more cleaning you have to do.

The larger the house, the more stuff can fit in it (and the more stuff you need to buy to furnish it).

The bigger the house, the bigger the mortgage. Which equates to fewer savings you can devote towards investing into an asset that actually provides you additional income.

My biggest recommendation for you is to live below your means.

If you earn $1 million and you spend $1 million, you’re still living month-to-month!

Interested in tax-advantaged wealth creation? Pre-enroll for the FREE Increase Your Financial IQ Mini-Course for more information on financial planning.

 

 

The Math: Why $29 Per Day?

 

In order to max out your Roth IRA, you need $5,500 to invest each year. If you break that down by 365 days a year, it comes out to $15 a day.

If you save $5,000 a year, over four years, you will have $20,000 for a down payment on a home.

$5,000 a day divided by 365 days is $13.50.

The average price of a home in the United States, as of this writing, is approximately $220,000 (photo provided by zillow.com).

zillow median home price You can get an FHA loan with 3.5% down.

$220,000 x 3.5%= $7,700

You will need closing costs, plus a cushion so that you aren’t sleeping on the floor of your new home. Thus, $20,000 is a safe number to have if you want to purchase a home.

You could get by with less, but I am a huge advocate of having a rainy day savings fund. We can’t predict the future and it is always good to have a cushion to fall back on.

So the moral of the story is, “if you can save $29 a day, every day, you can purchase a home and fund your retirement account.”

 

 

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Starting as Soon as Possible and Consistently Saving:

 

The sooner you start the more time your account will have to grow. This is because you have compounded interest working on your side!

Compounded interest is the interest calculated on the initial principal and includes all of the accumulated interest of the previous periods.

The maximum amount that you can contribute to a Roth IRA account per year is $5,500, which is $458 per month.

Experts say that over any 40 year period, the stock market has an average return of 7%. This includes down years. 

If you start with $5,500 and contribute $5,500 each year for 40 years (with a 7% average market increase), your total contribution will be $220,000.

That $220,000 over 40 years will grow to 1,257,212!!!

And Bang! You have over $1,000,000 for retirement!

 

bank rate Roth IRA

You can play with the numbers on any retirement account calculator (I used Bankrate.com, which is where I sourced the image above).

 

 

The 10,000 Foot Over View:

 

There are many ways to go about finding $29 a day to accomplish this goal.

You can download a FREE Checklist (which will be sent to your email) on How to Fund Your Retirement Account by Going Green (below this article).

Just remember, every dollar has an opportunity cost.

Curious, throughout high school did you learn about how to navigate your personal finances? Or about the importance of living a sustainable lifestyle?

Did they teach you about FICO scores and how much to have in revolving debt? Or what goes into calculating your credit score?

 

Increase your Financial IQ

 

Pre-enroll for the FREE Increase Your Financial IQ Mini-Course for more information on financial planning and wealth creation.

 

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Gardening Tips and Tricks to Prevent Global Warming

Gardening Tips and Tricks to Prevent Global Warming

Growing your own garden has many health benefits, not to mention it reduces your carbon footprint.  I have created this handy Gardening Tips and Tricks to Prevent Global Warming Starter Guide to encourage you to consider the benefits of growing your own organic fruits and vegetables. The goal of this article is to point out the main benefits of starting an organic garden, and how to plant a diverse vegetable mixture to give you a healthy and well-balanced diet.

 

Gardening Tips and Tricks to prevent global warming

 

Benefits of Planting Your Own Organic Garden:

 

Here is a list of benefits that gardening can bring to your life:

  1. Reduces the amount that you spend at the grocery store each week. Consequently, the money you save can be used to fund your Roth IRA (Roth IRA: How to Become a Millionaire by the Time You Retire!)
  2. Reduces the transportation fuel (carbon output) used to ship vegetables across oceans and highways to get to your local store.
  3. UN scientists have released a warning stating that the world has less than 15 years to reduce the carbon output to nearly 0 or else face serious climate change consequences. Planting a garden is a way you can make a difference by helping sequester carbon from the atmosphere! 
  4. Organic food tastes better because it is fresher and is able to ripen on the vine (instead of a gas chamber).
  5. It is an outdoor activity. Certainly, you can replace one of your indoor electricity using (TV, video games, social media time) hobbies with gardening. Keep in mind, Fossil fuels and coal make up nearly 62% of how we generate electricity in the U.S
  6. Many people live in cities, which are cement jungles surrounded by black asphalt (roads and parking lots). That being said, dark materials absorb heat which is why cities tend to be hotter than their surrounding areas. Adding vegetation provides shade and breaks up all off of that dark material.
  7. Grow fresh vegetables forever! Fruits and vegetables have seeds that you can harvest at the end of the year. Meaning that you can use the seeds to start your garden next year!!!
  8. A fun and family-friendly activity that can inspire you to take an interest in the origins of your food and make better choices about what you put on your plate.

 

 

Health Benefits of Gardening:

 

  1. Eliminates the addition of chemical pesticides that you are currently putting into your body.
  2. No chemical fertilizers. In short, worm casting is nature’s Miracle Grow and is an all natural organic fertilizer! Read on to learn about worm casting.
  3. It helps you eat more fresh fruits and vegetables.
  4. Adds a bit of exercise to your life.
  5. Breath fresher air by being outside. People are often stuck inside an office all day. Taking the time to tend to your garden will give you an opportunity to enjoy the outdoors.
  6. Plants increase oxygen production. The air around your home will be fresher (less carbon dioxide).

 

 

Help Prevent Global Warming by Starting an Organic Garden:

 

 

Now that I have your attention with this serious list of benefits. Let’s get you started on your money saving, healthy, better for the environment path to an organic garden!

I have put together a gardening kit that will get you started on your journey. For additional resources, visit the Sustainability Shop 🙂

 

 

 

The Survival Garden Seed Kit by Open Seed Vault:

 

 

Inside the Survival Garden Seed Pack are carefully selected vegetables to provide a well balanced and healthy diet.

This seed pack comes with 32 varieties of all-natural vegetable seeds that are non-hybrid, non-GMO, 100% naturally grown, and open pollinated. Plus, a 14-page growing and seed saving guide.

 

Each pack contains the following 32 seed packets:  Seeds

  1. Kale Vates Blue Scotch
  2. Eggplant Black Beauty
  3. Green Bean Tendergreen Improved
  4. Zucchini Dark Green
  5.  Lettuce Buttercrunch Butterhead
  6. Brussels Sprouts Long Island
  7. Lettuce Ruby Leaf
  8. Lettuce Black Seeded Simpson
  9. Bell Pepper California Wonder
  10.  Radish Cherry Belle
  11. Okra Clemson Spineless
  12. Beet Detroit Dark Red
  13. Onion Evergreen Bunching
  14. Cabbage Golden Acre
  15. Corn Golden Bantam
  16. Cantaloupe Hales Best Jumbo
  17. Winter Squash Jumbo Pink Banana
  18. Tomato Beef Steak
  19. Lima Henderson
  20. Swiss Chard Giant Fordhook
  21. Cucumber Marketmore
  22. Spinach Bloomsdale
  23. Carrot Scarlet Nantes
  24. Turnip Purple Top
  25. Pumpkin Sugar Pie
  26. Cauliflower Snowball
  27. Pea Sugar Daddy
  28. Broccoli Waltham
  29. Winter Squash Waltham Butternut
  30. Sunflower Mammoth
  31. Parsnips Harris Model
  32. Celery Tall Utah Improved

 

The packets are USA Seed Stored in an airtight and moisture proof resealable bag for safer, long-term storage. Plus, the seeds have been tested for maximum germination and vegetable yield.

The Survival Garden Seed Pack is the perfect seed starter kit to bringing fresh vegetables to your kitchen table!

 

 

 

Epica’s Stainless Steel Compost Bin:

 

You can reduce the amount of waste that is headed to a landfill by composting your food scraps.

Another benefit is that composting recycles nutrients, which can be used to start your own organic vegetable garden.

Nutrients from a compost pile is better for your health and cheaper than purchasing chemical fertilizers.

This stainless steel bin controls odors naturally with an airtight lid and a replaceable activated-charcoal filter.

It holds 1.3-gallons of compost. It is big enough to hold several days’ worth of kitchen waste like vegetable peels, fruits, and coffee grounds, yet still small enough to fit on your countertop. 

Dimensions: 7.16” in diameter x 11” high.

The compost bin is molded from one piece of metal, so it resists rust and leaks. Moreover, it does not leak toxic chemicals into your compost pile.

 

 

 

Benefits of Worm Casting:

 

 

I am sure you are aware of how healthy bacteria (probiotics) help us digest food. Well, worm poop (worm casting) combines enzymes and positive bacteria to provide plants with optimal nutrition content.

Many of the nutrients that plants need to thrive can be found in large quantities within earthworm castings. Nutrients include magnesium, calcium, potassium, phosphorus, copper, zinc, iron, cobalt, borax, manganese, nitrogen, and carbon.

High levels of microbial activity have the following benefits:

  1. Helps plants grow faster.
  2. Increases soil aeration, which helps plants absorb nutrients and allows their roots to breath properly.
  3. Increases water retention, which makes it possible to use 50-75% less water in some situations. Money Saved! 
  4. Is all-natural! The consumption of fewer chemicals is vital to a healthier lifestyle. Worm casting allows you to grow “organic” vegetables!
  5. No heavy metals. Worms actually have the ability to absorb heavy metals like copper, lead, and cadmium from the soil. This means that the castings are heavy metal-free. This reduces the likelihood that those metals will end up in your vegetables and on your plate! 
  6. Burn-proof. Often times fertilizers are too high in nitrogen, which burns your plants. Casting will never burn the roots of your plants 🙂
  7. It is a natural pesticide! Save money on pesticides while avoiding the need to spray chemicals.
  8. Increases your crop yield :). In 2014, Nature Research published a study that showed that crops grown in worm castings produce 25% more yield.

 

 

Worm Casting Kit:

 

 

The nice thing about producing your own casting is that you will continuously produce natural fertilizer for your garden every month.

Producing your own casting will save you money over time, as opposed to purchasing casting from the store (which is typically packaged in a plastic bag).  

I have included a video to shows how the worm factory produces approximately 6 quarts of worm casting per month.

What’s more, the cost of worm casting bought from a store can be as much as $25 for 8 quarts.

In sum, if you are serious about wanting to grow organic vegetables, making the investment in a worm casting kit is totally worth it!

Moreover, you get to collect worm casting tea (to be clear, this is not the kind of tea you drink) that your plants love!! You should mix the tea with water and water your plants for an extra boost. worm casting

The Worm Factory comes with a bonus “What Can Red Wigglers Eat?” infographic refrigerator magnet.

This allows you to quickly determine which foods are perfect for your worms, and which you should avoid. 

Plus, the Worm Factory is odor free and included a 38-page instruction manual that is a step-by-step guide to managing your Worm Factory.

This worm casting kit has a built-in “worm tea” collector tray and spigot for easy draining.

I have included this instructional video to help you set up your worm casting kit by Growyourgreens.com.

 

 

 

Red Worms:

 

To get your organic garden rocking-and-rolling with the worm casting kit, grab 300 hundred live Red Worms and you will be all set!Red worms

These red worms turn organic waste into nutrient-rich soil!

The manufacturer even guarantees live delivery!

 

 

 

The 10,000 Foot Overview:

 

Often times we feel helpless because global warming can feel like such a big problem to tackle.

But, know that you can make a difference by making small changes to your daily actions. We all got ourselves into this climate change dilemma, and we all have to pitch in together to get ourselves out.

Let’s look to ourselves before we look to judge how others act. We can make a paradigm shift towards a sustainable planet if we make it the new “cool thing to do”.

Followers will always follow the trend, so be a leader and make sustainability the “new trend”.

Planting a garden is a way you can make a difference and help sequester carbon from the atmosphere!

I have listed a few of the benefits of planting your own organic garden. With some creativity, you can think of many other reasons how gardening can benefit your health and the planet.

Of course, I encourage you to add additional gardening benefits or tips to growing a successful garden by commenting at the bottom of this article.

If global warming, climate change, and resource depletion are important to you, then pre-enroll for a free mini-course to learn about other money-saving sustainability swaps and actions that you can take to save the world!

Moreover, becoming a Sustainability Hero has health, environment, and budget benefits.

Click here to visit the Sustainability Shop to start using zero-waste, plastic alternative, and biodegradable products today.

The shop includes energy efficiency and water conservation conversion kits, solar products, zero-waste, and minimally packaged home goods.

 

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I encourage interaction, so please feel free to comment below!