I have no credit, no loans, and am a contractor for $40/hr at a company and I expect to work here for quite a while (job security should be above average).
Every week, I allocate $300 to my Mortgage Preparation Fund. I keep it in a high-interest savings account (3.73% p.a., but goes down to 2.73% if I withdraw anything from that account in that month, but I do not have plans to withdraw any time soon).
I was wondering if there are better places to put my money in. Also consider that I put in $300 every week, so it keeps growing weekly, so investments that allow partial additions every interval or so would be good.
Additional details :
- Concurrently, I'm also setting aside some of my salary to my Emergency fund, luxuries, and some other small things that I plan to spend on soon (car, wedding in the next 5-10 years maybe, etc).
- I don't have a target house yet, or a target price range. All I am focusing on now is to grow my mortgage preparation fund as much as I can, so that when the time comes, I'm ready.
- I live in Australia, if that matters.
- I expect to use the funds for a downpayment 7-10 years from now. So, I have 7-10 years to try and save up as much as I can with the help of investments.