Ever wonder how the top percent became a one percenter? Let me show you, being in the top one percent means you have 10.8 million. Now the top two percent is 2.5 million. Top five percent is one million. That's pretty good.
If you're in the top five percent, you have over a million dollars in net worth. That's really good, but the top 10 is 800 000. And if all else fails, the top 50 percent of America is 500k. And you know if you want to make it on the board in your lifetime.
Two-thirds of this net worth comes from Real Estate Equity These people aren't renting houses, so get out of the renting game and get into purchasing real estate. It all starts with that first property purchase, so there's really no better day to get started than yesterday.
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Oh man do I love guys like this.
A 250k home at the current 6% interest rate comes out to 700k after a standard 30 year mortgage. Accounting for inflation, you're looking at a net loss, of close to 300,000 dollars paid in interest. And that's the absolute best case scenario. Even at the 2% interest we enjoyed under Trump. You're out 50 grand that you will never see again. The housing market is a total scam, but it's one people fall for because it's such a long con, and people aren't great at math.
Here's actual good advice, work your ass off to save up 10 grand, put that 10k into a 10 year IRA. You should be able to accomplish this in maybe 2 years. Save up another 10k, and split it into 2 CD accounts. Then, rinse and repeat until that first IRA pays off. Now, if you want to, go take out a mortgage. But rather than using the house as collateral, use your IRA and CD accounts. Each one will pay off through out your 30's, and you'll have a house, bought and paid for when you turn 40. As well as enough money to retire comfortably. Interest on said mortgage will mean that you can't profit from the sale of your home, but you won't lose either.