So you have a new baby. There are so many baby-issues to worry about. Are you using the right food, clothes, car seat..... Everyone thinks for the current moment and rarely thinks for the future. Oh sure, you think about having insurance or living in the right school district, but who thinks of things like how to pay for their college when they haven't even started pre-school!
I have a college-aged daughter. Do you realize that most notable colleges are over $30k!! per year!!! Do you also know that most college aged kids graduate with over $25k in debt? If you do not want that for your child, you need to look into how you can save the most amount for each child to attend college.
My daughter pays for most of her college and I help where she falls short. That is after she borrows the maximum amount every year. - - I remember when she was young and I thought "EDUCATION?! I'll start saving when she gets into school." And then throughout her growing up (and 2 more babies came) I kept thinking I should open one of those college accounts.....but I never did.
I did some math on Bankrate.com and I found if you want to save $100,000 in 17 years at 3.5% interest, you have to pay $375 per month. Now I don't know about most young families, but $375 is a car payment, and I for sure could not have paid $375 x 3 (kids) per month!
So how could you get someone else to give you the money? Buying real estate, of course!
A rental house could be purchased with little money down and could even become income generating. When your child goes to college, you can sell it, or refinance for some equity out, or if it's near campus the child could live in it to save money. Real Estate is really the only way I know to be able to build a nest egg for college. AND you can get a house for each child. Heck, why not get one for your retirement too?
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