In aÂ CNBCÂ article, self-made millionaire David Bach explained thatÂ â€œthe single biggest mistake millennials are makingâ€?Â is not purchasing a home because buying real estate isÂ â€œan escalator to wealth.â€?
Bach went on to explain:
â€œIf millennials donâ€™t buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 times wealthier than a renter.â€?
In his bestselling book,Â â€œThe Automatic Millionaire,â€?Â Bach does the math:
â€œAs a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started â€” owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!â€?
Who is David Bach?
Bach is a self-made millionaire who has written nine consecutiveÂ New York TimesÂ bestsellers. His book,Â â€œThe Automatic Millionaire,â€?Â spent 31 weeks on theÂ New York TimesÂ bestseller list. He is one of the only business authors in history to have four books simultaneously on theÂ New York Times, Wall Street Journal, BusinessWeekÂ andÂ USA TodayÂ bestseller lists.
He has been a contributor toÂ NBCâ€™s Today Show,Â appearing more than 100 times, as well as a regular onÂ ABC, CBS, Fox, CNBC, CNN, Yahoo, The View,Â andÂ PBS. He has also been profiled in many major publications, includingÂ the New York Times, BusinessWeek, USA Today, People, Readerâ€™s Digest, Time, Financial Times, Washington Post, the Wall Street Journal, Working Woman, Glamour, Family Circle, Redbook, Huffington Post, Business Insider, Investorsâ€™ Business Daily,Â andÂ Forbes.
Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice â€“ if you donâ€™t yet live in your own home, go buy one.
Source: Keeping Current Matters