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Question for the Money Doctors

Question submitted on Nov 6, 2012.

Question

I have saved up 5486.00 and want to get in to either Tax Liens or buying properties how much should i invest or should just keep on saving.

Answer

Congratulations for saving up $5,486. Before buying any property, you need to review your financial plan. First of all, do you have your debts under control? Do you have high interest debt that should be paid down? Do you have at least 3-6 months of living expenses saved up? You may consider increasing that to 6-12 months of living expenses in light of how difficult it may be to find another job. Buying real estate is complicated and can be risky. There are a lot of costs to consider.

My short answer - pay down debt and keep on saving!


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