We explored why buying a home may make sense for you, but now its time to put pencil to paper. And its really important to have the right set of expectations when you buy a home. Let’s set aside all the emotional reasons for a moment — we need a place to live and grow or want a place to call our own and to not be beholden to a landlord. They are powerful and important in the home buying decision.

But along with those “fuzzy” feelings often creeps a feeling of wanting to make money off your home. And here is where I want to insert a little piece of advice — let go of the sometimes perpetuated myth that your home will be a “great investment.”

The reality is: it probably won’t be a great investment. But it will be an outstanding savings vehicle. I believe these two things are often mixed up. Yes, there are always the stories about the people who bought homes that “doubled” in value in a few years (ignore them!). The reality is that probably won’t happen to you. So please don’t buy a home and stretch yourself thin thinking that you will win the proverbial lottery.

A $300,000 home that you purchased for all cash that appreciates 4% a year for 10 years is worth $444,000. On average (meaning over a long period of time), homes will appreciate around the rate of inflation. Play with the data if you’d like to see. The housing crisis of the last decade also taught us how wrong these assumptions can be.

That is an okay investment just outpacing inflation. A $300,000 investment in stocks that grows 7-8% is worth $600,000 in ten years. The difference is huge. Don’t get me wrong, a home is by no means bad, it’s just not the best investment you can make — despite what some may tell you.

Don’t be deflated, though! That same $300,000 home, if you purchased with a mortgage and a $30,000 down payment would build up equity worth $187,000 in ten years.  Equity means the piece of the value of the home that is yours to keep.

You put in $30,000 and got out $232,000 ($444k home value minus $212k remaining mortgage). Your money is compounding at 23% rate over 10 years. Remember how important having a high rate of compounding is? The reason for this is that you are using borrowed money to boost your purchasing power. You then you paid down some debt and got some price appreciation out of the home.  That is the magic of saving and using debt wisely.

So herein lies the secret — the home should be viewed as a vehicle for saving not as an outstanding investment. Don’t forget, a little piece of that pesky mortgage payment you make each month goes toward paying down the debt you owe and increasing a piece of the home that you own. A mortgage forces you to be disciplined and save. And it also gives you a write off on your taxes too, which creates some additional savings each year.

It may not seem so obvious why this distinction even matters.  But it is because you need to have the right expectations about what your home is worth heading into the purchase. Not because you’re speculating about how much money you can make. You’re expectations will be fair and then when its time to sell, you can hang on to the memories you created in that special place!