April 2, 2019.
David Bach, a self-made millionaire, said in a CNBC article that “the biggest mistake millennials are making is not buying their first home.” He went on to explain, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.”
“Homeowners are worth 40 times more than renters. Now, that first home doesn’t need to be a dream home, it can be a very small home. You might literally have to buy a small studio apartment, but that’s how you get started.”
How to pay off your mortgage and retire 10 years early
Bach also tells millennial renters his secret to buying that first house successfully:
“Don’t do a 30-year mortgage. You want to take that 30-year mortgage and instead pay it off early, do a 15-year mortgage. What happens if you do a 15-year mortgage? Well, one, you pay the mortgage off 15-years sooner, that means you’ll be able to retire in your fifties. Number two, you’ll save a fortune (on potentially hundreds of thousands of dollars in interest payments).”
Let’s do this: In the time it takes to order your coffee, you can get prequalified online.
Then he explains what it takes to pay off your mortgage in half the time that’s expected:
“For fifteen years, you got to brownbag your lunch. Think about that! Brownbag your lunch literally for fifteen years. You can retire ten years sooner than your friends. You’ll have real wealth, because you bought a home – you’re not a renter. And you’ll be financially secure for life.”
Most people are eager to hear the investment advice of a respected millionaire, especially one who’s self-made. In this case, the advice is simple: If you don’t own your own home yet, it’s time to buy one.
Think you can’t afford it? Think again
Today’s rates are looking great, and with the potential to build 40-times more worth, there’s no reason to wait. Locking in a low rate today could skip you ahead to a higher price range. You may be able to afford even more than you thought without changing any of your financial qualifications. That’s the beauty of buying now versus later: You could get more than you bargained for. Find out how much when you Prequalify Now.
More about David Bach:
A self-made millionaire, Bach has written nine consecutive New York Times bestsellers. Bach is one of the only business authors to ever have four books on the New York Times, USA Today, Wall Street Journal, and BusinessWeek bestseller lists at the same time. He’s been seen as an NBC Today Show contributor, with more than 100 appearances, as well as an ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS regular. Bach’s profiles in major publications include the New York Times, BusinessWeek, Time, Financial Times, People, USA Today, Reader’s Digest, Washington Post, the Wall Street Journal, and more.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources are deemed reliable but not guaranteed.