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Focus on Savings
Major Purchases

The most common major purchases are homes and vehicles. If you're buying a home, you'll probably be expected to make a down payment of 20 percent, or to take a second mortgage to cover the down payment. If you can make the down payment without a loan, you'll have a significantly lower payment each month. The same goes for vehicles. Creative and managed budgeting can help you make a larger down payment and have a much lower monthly payment for years to come.

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­By now, you've set up your budget. You know how much money­ you have. But you­ could still use some help staying on budget. Here are some tips that can help you stick to your budget and get ahead on that major purchase:

Determine the amount of your budget that you can afford to save each month. Have it direct-deposited to your savings account, or to your mutual fund. Wherever you decide to keep your savings, make sure you put money into it every month. That savings will make a big difference for you later.­

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