In aCNBCarticle, self-made millionaire David Bach explained thatthe single biggest mistake millennials are makingis not purchasing a home because buying real estate isan escalator to wealth.
Bach went on to explain:
If millennials don’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.
In his bestselling book,The Automatic Millionaire,Bach does the math:
As 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 – 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!
Who is David Bach?
Bach is a self-made millionaire who has written nine consecutiveNew York Timesbestsellers. His book,The Automatic Millionaire,spent 31 weeks on theNew York Timesbestseller list. He is one of the only business authors in history to have four books simultaneously on theNew York Times, Wall Street Journal, BusinessWeekandUSA Todaybestseller lists.
He has been a contributor toNBC’s Today Show,appearing more than 100 times, as well as a regular onABC, CBS, Fox, CNBC, CNN, Yahoo, The View,andPBS. He has also been profiled in many major publications, includingthe New York Times, BusinessWeek, USA Today, People, Reader’s Digest, Time, Financial Times, Washington Post, the Wall Street Journal, Working Woman, Glamour, Family Circle, Redbook, Huffington Post, Business Insider, Investors’ Business Daily,andForbes.
Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice if you don’t yet live in your own home, go buy one.