Two renters pose in front of their new home that they’re renting from Roots, a program that helps renters invest in real estate.
Courtesy: Katie Curran
When Will Hunnicutt was searching for an apartment in Atlanta earlier this year, pricey leases and application rejections left him feeling defeated.
“The three-and-a-half times income-to-rent ratio is kind of hard to fulfill when they’re wanting $3,000 in a lot of places,” the 30-year-old social worker said.
Then Hunnicutt found a $1,050-per-month two-bedroom apartment tied to Roots, a real estate investment trust based in the Atlanta area that works to help rentersof the properties in its portfolio build wealth toward homeownership.His $1,000 security deposit is invested in the REIT, and he has earned another $200 in quarterly rebates so far for taking care of his unit and paying rent on time.
“The end goal is to buy a house, so having investment funds, that passive income, would be very helpful,” Hunnicutt said.
Will Hunnicutt with his dog Bailey in his Atlanta home that he rented through Roots, a company that helps renters build wealth by investing in real estate.
Courtesy: Will Hunnicut
Roots is currently only available in Atlanta, but has plans to expand this fall. It’s just one approach to a broader aim: helping consumers get financially ready to buy a home.
As buyers continue to struggle with home affordability, experts say programs that help with down payments may be worth another look.
The dream of owning a home is moving further out of reach for many as homes get more expensive. Aspiring homebuyers need to make $113,520 a year to buy a typical U.S. home, according to national brokerage site Redfin — 35% more than what a typical household earns annually.
One barrier toward homeownership is having enough savings for a down payment. Nearly 40% of Americans who don’t own a home point to a lack of savings for a down payment, according to a 2023 CNBC Your Money Survey conducted by SurveyMonkey. More than 4,300 adults in the U.S. were surveyed in late August for the report.
‘Thousands of down payment-assistance programs’
Down payment-assistance programs come in different forms, and from different sources — including state agencies, cities, nonprofits, financial institutions and mortgage lenders. So you’ll have to hunt around to see what’s available in your area.
Usually, assistance programs focus on first-time homebuyers and buyers who meet certain income qualifications. There are also programs focused on “first-generation homebuyers.”
In many down payment-assistance programs, participants have to take a homebuyer education course. Depending on the program, they may also have to meet other conditions, like getting their mortgage through a specific lender or saving a set amount to contribute toward their home purchase.
The aid can be significant. For example, Alternatives Federal Credit Union in Ithaca, New York, has programs offering $9,000 up to $20,000. The Chicago Housing Authority can assist with up to $20,000.
These kinds of programs are one way to work toward equality in homebuying, as systemic barriers still block the path to homeownership for many Americans, housing experts say.
This is especially true for Black Americans, who have largely made up the receiving end of decades of redlining, exclusionary zoning and predatory lending, according to Nikitra Bailey, executive vice president of the National Fair Housing Alliance.
Programs targeted toward first-generation homebuyers are crucial, she said. While it’s common for family to help with a down payment, would-be buyers whose parents rent are less likely to be able to offer that help.
“We know there are thousands of down payment-assistance programs that cities have adopted,” but their reach in “underserved consumers of color” is limited, Bailey said. “And that’s why ‘first generation’ is very important, because it’s a race-neutral way to target resources to the consumers that the future health of the housing system depends on.”
How much you need for a down payment
Part of the reason coming up with a down payment is so daunting is that buyers often think they have to put down 20% of the home purchase price. They’re mistaken, experts say.
Keep in mind, putting less than 20% down typically means you would have to pay private mortgage insurance, or PMI. PMI can cost anywhere from 0.5% to 1.5% of the loan amount per year, depending on different factors, according to The Mortgage Reports. Typically, you can request for mortgage insurance to be removed after you reach 20% equity.
‘Those dollars should not be invested in the market’
First-time homebuyers may qualify to make penalty-free withdrawals up to $10,000 from a 401(k) plan or traditional or Roth individual retirement accounts. But financial advisors recommend preserving those funds for retirement when possible.
While Roots may help its renters invest to build wealth, experts typically emphasize saving rather than investing for short-term goals.
Low-risk options including high-yield savings accounts, certificate of deposits or Treasury bills may be ideal for people whose timeline to buy is up to five years.
“Anything that you need dollars for in the next three to five years, those dollars should not be invested in the market,” said Janet Stanzak, a certified financial planner and founder of Minnesota-based Financial Empowerment. “Markets typically cycle in three to five year cycles, and the worst case would be, you find a home you want to move on and your money’s in the market and the market takes a downturn.”
In the macroeconomic environment of late July 2026, personal cash management requires an active, structured approach to wealth preservation. With central bank benchmark rates remaining elevated to ensure long-term disinflation, conservative yield-bearing vehicles—such as short-term U.S. Treasury bills, money market funds, and high-yield savings accounts (HYSAs)—continue to offer reliable nominal returns between 4% and 5%. For individual investors, maximizing net returns requires moving beyond passive checking accounts and executing a disciplined cash laddering strategy.
Leaving substantial liquid capital in traditional bank deposits creates an invisible drag on personal net worth due to ongoing inflation. By implementing a tiered liquidity framework, individuals can split emergency cash reserves and short-term capital allocations across rolling maturities. Allocating cash into 4-week, 8-week, and 13-week Treasury bills creates a continuous cycle of maturing liquidity, allowing investors to continuously reinvest capital at prevailing market yields while maintaining immediate access to emergency funds.
Tax efficiency represents a critical dimension of high-yield cash optimization. For high-earning individuals residing in states with substantial local income taxes, direct holdings in short-term U.S. Treasury instruments often deliver superior net post-tax yields compared to standard commercial bank HYSAs. Because interest earned on federal Treasury bills is strictly exempt from state and local taxation, investors can retain a larger portion of their compounding interest gains without taking on additional credit or market risk.
Ultimately, personal wealth accumulation in mid-2026 relies on intentional capital deployment. Cash should be managed as a productive asset class that generates consistent, risk-free returns. Regularly auditing account yield terms, automating recurring transfers, and leveraging tax-advantaged fixed-income instruments ensures that personal liquidity remains fully optimized against macroeconomic fluctuations.
The personal finance industry in July 2026 is experiencing a technological evolution, driven by the wide deployment of next-generation algorithmic wealth management tools. Modern digital financial platforms have expanded far beyond basic automated index investing; today’s robo-advisors utilize real-time tax-loss harvesting, dynamic portfolio rebalancing, and hyper-personalized spending analysis to optimize retail investor outcomes. However, as these digital solutions become ubiquitous, investors face the crucial challenge of balancing automated execution with human strategic judgment.
The core advantage of automated financial planning platforms lies in their ability to remove emotional bias from investment execution. During periods of market volatility or localized sector realignments, automated algorithms systematically rebalance portfolios back to target asset allocations without falling victim to panic selling or speculative enthusiasm. Furthermore, integrated cash-flow monitoring algorithms analyze individual spending patterns in real time, automatically sweeping surplus income into designated retirement or debt-liquidation accounts to accelerate net worth accumulation.
Despite these operational advantages, algorithmic tools have inherent structural limitations when addressing complex, highly personalized financial life events. Decisions involving multi-generational estate planning, highly complex tax strategies, small business exits, or nuanced real estate transactions require contextual human judgment that software models cannot replicate. Relying solely on automated models without periodic human professional review can result in misaligned risk profiles or overlooked tax liabilities during major life transitions.
The optimal approach for personal financial planning in late 2026 is a hybrid advisory model. Individuals should utilize automated platforms for routine asset allocation, continuous tax optimization, and low-cost passive index tracking, while engaging qualified human financial advisors for periodic strategic planning, estate structuring, and qualitative risk evaluations. This dual approach ensures maximum cost efficiency and disciplined execution while retaining essential strategic guidance.
In the financial environment of mid-2026, personal cash management has re-emerged as a vital component of holistic wealth building. With central bank policy rates holding firm to maintain long-term price stability, yield-bearing instruments such as money market funds, high-yield savings accounts (HYSAs), and short-term Treasury bills continue to offer compounding returns around 4% to 5%. For individual investors, effectively structuring cash reserves requires shifting away from passive bank deposits toward active yield optimization.
A frequent pitfall in personal asset management is leaving substantial liquid capital in traditional checking or low-yield savings accounts, where real returns are continuously eroded by baseline inflation. By implementing a disciplined ‘cash ladder’ strategy—allocating liquid funds across tiered maturities using ultra-short Treasury instruments and FDIC-insured high-yield accounts—individuals can secure maximal yields while retaining immediate liquidity for emergency expenses or tactical investment opportunities.
Simultaneously, investors must evaluate the tax efficiency of their cash holdings based on their tax bracket and geographic location. For high earners situated in states with high local income taxes, direct holdings in short-term U.S. Treasury bills often yield a higher net post-tax return than standard high-yield savings accounts, as Treasury interest is strictly exempt from state and local taxation. Understanding these nuanced tax distinctions allows individuals to capture significant incremental gains without taking on additional market risk.
Ultimately, personal financial health in late 2026 hinges on intentional liquidity management. Cash reserves should not be viewed merely as static emergency funds, but as a dynamic asset class that contributes positively to net worth growth. Regularly auditing yield terms, automating cash transfers, and optimizing for post-tax efficiency ensures that personal capital remains fully productive across all economic conditions.
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