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 Wh...