Housing Counselor Certification (HUD) Practice Exam

A client would like to purchase a home within one year and wants to increase household income. What is the best solution for the client to reach this goal?

1. Invest in the stock market

2. Find a second job

3. Cut down on expenses

4. Consult a financial advisor

The correct answer is: Find a second job

Finding a second job is an effective strategy for a client aiming to increase household income within a specific timeframe, such as buying a home in one year. Taking on additional work can directly boost earnings, providing immediate financial resources that can be allocated towards a down payment or closing costs. This approach offers the potential for consistent income and the opportunity to save more aggressively for homeownership. While other options might contribute to the client's overall financial strategy, they lack the same direct and immediate impact on income. For instance, investing in the stock market can potentially yield returns, but it involves risk and may not guarantee the quick financial boost needed for a home purchase within a year. Cutting down on expenses can help save money, yet it doesn't increase income, which is the client's primary goal. Consulting a financial advisor can provide useful strategies and guidance, but it would not generate more income itself. Each of these alternatives has merit, but obtaining a second job clearly aligns with the urgent need to enhance earnings in the short term.