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    Millionaire to Millennials: The Costly Mistake of Not Buying Now

     

    On his personal website, self-made millionaire David Bach makes a striking statement:

     “Not prioritizing homeownership is the single biggest mistake millennials are making.”

    He further stated, “Buying a home is an escalator to wealth.”

    Bach explains:

    “Young adults in particular aren’t hopping on this escalator, and it’s a costly mistake…If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.”

    He then elaborates on the game of homeownership:

    “Start by crunching the numbers…actually do the math…This way, you’re really clear on your goals and you won’t just say to yourself, ‘I’ll never afford this!’

    A good rule of thumb is to make sure your total monthly housing payment doesn’t consume more than 30 percent of your take-home pay.”

    Bach concludes by saying,

    “Oftentimes, buying your first home means you’re not buying your dream home…You’re just getting into the market.”

    Bottom Line

    Whenever a well-respected millionaire gives investment advice, listeners usually clamor to hear it. This millionaire shares some simple and straightforward insights: “The fact is, you aren’t really in the game of building wealth until you own some real estate.”

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