Welcome back. It's Finance Friday, another special edition of Money Girl, where I answer your burning money questions. Today's topic is a good one. It comes from Lisa, who says, I'm 29 years old and getting married this summer. My fiance and I have good jobs and contribute a little to our

401ks. We're renting a place, but would like to buy a home someday. Since we don't have much savings

for a down payment, should we stop putting money in our retirement plans and put it in savings instead?

Or is trying to buy a home that's affordable right now

just too difficult? Thanks for your question, Lisa. Buying a home is the largest purchase that many

people ever make. This podcast will review how buying a home might fit your overall financial goals

and tips for making it as affordable as

possible. Again, I appreciate you downloading episode 921 of the Money Girl podcast. I'm Laura Adams,

an award-winning author, speaker, spokesperson, and founder of the Money Stack. That's my substack newsletter. You can subscribe to the

newsletter for free or support the show as a paid member and get access to live educational

events. You can learn more and connect with me at laura d adams.com. That's also where you can

email your money question. Learn more about my books and

courses and, of course, sign up for the money stack. You can also record a brief question or

comment on our voicemail at 302-364-0308. I hope to hear from you soon. If you're like Lisa, wondering if becoming a homeowner is still a

worthwhile goal as prices and mortgage interest rates rise, I'll review some of its primary

pros and cons to consider. Then we'll discuss how to buy an affordable home if and when it's

right for you. So let's go through five

reasons why buying a home can improve your life and finances. Number one, you build equity.

Home equity is the difference between a property's market value and what you owe on it. For instance,

if your home gets appraised for $400,000 and your mortgage balance is

$300,000, you have $100,000 in equity. You could sell the property, pay off the mortgage,

and walk away from the deal with about $100,000 in your bank account. When you have a fixed rate mortgage, each payment is made up of

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