If YOU Give Me 20 Minutes, You'll Become Financially Free — Transcript

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1. 0:00A lot of people listen to this, and if I
2. 0:01go back, if I go back just over 10 years
3. 0:03in my life, I would have been sat
4. 0:05listening to this conversation in £7,000
5. 0:08of debt.
6. 0:09And I would have thought, God, like
7. 0:10becoming a millionaire, that's a that's
8. 0:12a million miles away.
9. 0:13No pun intended. I I To become a
10. 0:15millionaire, I'm going to have to earn
11. 0:17so much more money. And at the time, I
12. 0:19was working in call centers.
13. 0:21It would it would have just felt so far
14. 0:22away. And I say, you know, people are
15. 0:25struggling to feed their children, let
16. 0:26alone become a millionaire.
17. 0:29Is it far away for the average person?
18. 0:32>> It's far away if you don't know the
19. 0:33strategy. There's a strategy to getting
20. 0:35out of debt. There's a strategy building
21. 0:37wealth. There's a system.
22. 0:39>> How much of it is just earning more
23. 0:41money? Because when I have these
24. 0:42conversations on my show, I think the
25. 0:44surprisingly untouched territory is we
26. 0:48don't teach people how to become more
27. 0:50valuable so that they can earn more
28. 0:52money. A lot of it's about like index
29. 0:54funds or savings, whatever. But how much
30. 0:56of it is just like
31. 0:58I need to get
32. 1:00higher valued skills in the market.
33. 1:03>> We know for a fact that making more
34. 1:04money doesn't make you rich. So so
35. 1:06people can go, as I told you earlier,
36. 1:08like from $100,000, they can go from
37. 1:1050,000 to 100,000 and still be broke.
38. 1:13They can go from 100,000 to 200,000 a
39. 1:15year and still be broke. They can go
40. 1:16from 200,000 to 300,000 and still be
41. 1:18broke.
42. 1:19In the US, when you take households that
43. 1:21make $150,000
44. 1:23a year, one out of three of them are
45. 1:25still broke.
46. 1:26When you peel back the curtain and you
47. 1:28ask, why is that? Well, we know things
48. 1:30cost more, but we also know there's
49. 1:32massive lifestyle creep, right? You get
50. 1:35you get around other people who are
51. 1:36making more money, and then you spend
52. 1:38more money.
53. 1:39And the reality is these phones are
54. 1:42designed to get you to spend everything,
55. 1:44right? Today, with the algorithms,
56. 1:46there's better technology today than
57. 1:47there's ever been to get you to spend
58. 1:49more money.
59. 1:50And nobody wants you to spend money
60. 1:51once, they want you to spend money for a
61. 1:53lifetime, right? It's a lifetime value
62. 1:54of a a
63. 1:56So there's a battle for our income.
64. 2:00And everyone wants a piece of it. It
65. 2:02starts with the government. Like, you go
66. 2:04to work and you go to work at 9:00 and
67. 2:06you actually work from 9:00 to 12:00 for
68. 2:09taxes.
69. 2:10Now, this is an important lesson,
70. 2:11actually. The government doesn't ask you
71. 2:14to budget to pay taxes.
72. 2:17They take your taxes from you
73. 2:19automatically. They take social security
74. 2:22from you automatically. They They take
75. 2:24the money from you automatically because
76. 2:25they know you won't have anything to
77. 2:27give if they don't take it from you.
78. 2:30Then people work from 12:00 to about
79. 2:313:00 for housing and food. And then from
80. 2:353:00 to 5:00 for all the rest of all the
81. 2:37rest of things.
82. 2:40The people who build wealth in America,
83. 2:42and really all over the world, they do
84. 2:44something different. They keep the first
85. 2:46hour a day of their income.
86. 2:48>> What do you mean by that?
87. 2:49>> So, what that means is whatever you
88. 2:50earn,
89. 2:52you could be making minimum wage. You
90. 2:54could be making $20 an hour, $30 an
91. 2:56hour, $40 an hour. Whatever you earn,
92. 2:59the first hour a day of your income has
93. 3:01to go to you.
94. 3:02You're the first person who gets paid.
95. 3:04>> And you mean you have to save it, invest
96. 3:06it?
97. 3:06>> You have to invest it. So, how do you
98. 3:09invest the first hour of your day
99. 3:12without paying taxes?
100. 3:14The answer is you pay yourself first
101. 3:16using a 401k plan. So, if you have a job
102. 3:19with a retirement account, 401k plan,
103. 3:22you sign up and you use that plan. Now,
104. 3:25I can't just stop right there, right?
105. 3:26Because Because it sounds so simple,
106. 3:28like, okay, I'll use my plan. No, you
107. 3:31have to know the formula to using your
108. 3:33plan to be rich. We know, after 40 years
109. 3:36now, exactly what you need to do if you
110. 3:38want to be a millionaire. I can tell you
111. 3:40how to become a millionaire starting
112. 3:42your 20s so that you're done by the time
113. 3:44you're in your mid-50s.
114. 3:45You save a little 1 hour a day of your
115. 3:47income is 12 and 1/2% of your gross
116. 3:49revenue.
117. 3:51I went on online today to look at what's
118. 3:53the latest statistics with 401k
119. 3:55millionaires.
120. 3:56The new stats that just came out from
121. 3:58Fidelity. There are 654,000
122. 4:02people in Fidelity 401k plans that are
123. 4:04now millionaires.
124. 4:05>> What is a 401k?
125. 4:07>> Okay.
126. 4:07>> Because you know, we've got a lot of
127. 4:08global listeners.
128. 4:09>> Yeah, yeah.
129. 4:09>> There's different types of 401k in every
130. 4:12country.
131. 4:12>> So in the US, a 401k plan is a
132. 4:15retirement account. It is a retirement
133. 4:17account that the company has set up.
134. 4:19Right? And it allows you to put money
135. 4:21away tax deductible. They call it
136. 4:24pre-tax.
137. 4:25In [snorts] most countries, you have a
138. 4:27deductible retirement account. But it
139. 4:29depends on the country, too, right? Like
140. 4:31in Canada, it's a different type of plan
141. 4:33than it is in Australia, than it is in
142. 4:35Italy, than it is here in the UK.
143. 4:37Almost every country though has some
144. 4:40form of retirement account and has the
145. 4:42ability to put money away automatically.
146. 4:46Here's the problem.
147. 4:47And I'll use the US specifically because
148. 4:49it's where I do most of my work. In the
149. 4:52US, those who have a 401k plan,
150. 4:57the ones that are millionaires, what
151. 4:58they did, here's the formula, the exact
152. 5:00formula, they saved 14% of their gross
153. 5:03income.
154. 5:04And their employer had a small match on
155. 5:06top of that.
156. 5:08And then how they invested the money is
157. 5:10key because it's not enough to just put
158. 5:12money in these 401k plans, you have to
159. 5:14be invested for growth. And growth means
160. 5:17stocks. Right? So you have to have and
161. 5:20and the actual specific allocation in
162. 5:23these 401k millionaires I just talked
163. 5:25about was about 70% stock and 30% bonds.
164. 5:30Okay, now what are people doing that
165. 5:33aren't achieving this? Well, the average
166. 5:34American is saving maybe 3 or 4% maybe
167. 5:375%
168. 5:39if they have a 401k plan. People who
169. 5:41don't have 401k plans in many cases
170. 5:43aren't even doing this. They can, they
171. 5:45can open up an IRA account, but in most
172. 5:47cases they're not doing that.
173. 5:49So the whole secret is
174. 5:51not budgeting,
175. 5:53not using discipline, having the money
176. 5:55move right from your paycheck.
177. 5:58Paycheck gets deposited automatically.
178. 6:01And then it moves the day it hits your
179. 6:02bank account automatically first for
180. 6:05retirement. Then later we'll talk about
181. 6:08building a security account, building a
182. 6:09dream account.
183. 6:11The key is that the money moves
184. 6:14automatically.
185. 6:16So in the United States now there's by
186. 6:17the way 24 million millionaires now. So
187. 6:20we've seen an increase of 8 million
188. 6:22millionaires to 24 million millionaires
189. 6:25in the US in just 20 years.
190. 6:27How did they do that?
191. 6:29There's two primary escalators to
192. 6:31wealth.
193. 6:32That is stocks
194. 6:34and real estate. And if you're not in
195. 6:36stocks and you're not in real estate,
196. 6:38you are being left behind.
197. 6:41>> When you say real estate, does that mean
198. 6:43having a mortgage and have owning a
199. 6:44house home?
200. 6:45>> It's owning a home or owning REITs.
201. 6:49>> REITs?
202. 6:49>> REITs. Real estate equity investment
203. 6:51trust. So that's another way to buy real
204. 6:53estate without actually having to own
205. 6:55the home, but you don't get the same
206. 6:56level of returns.
207. 6:58>> I mean this is this is one of the hot
208. 7:00topics of conversation we've had on this
209. 7:01show several times is many of my guests
210. 7:03that are
211. 7:04sort of financial advisers say that
212. 7:06owning a home is a bad investment.
213. 7:09I think from what I understood from the
214. 7:10research and from reading your books
215. 7:11that you feel differently
216. 7:14about that.
217. 7:14>> Yeah, I mean I I couldn't feel more
218. 7:16differently. When we look at where is
219. 7:19wealth created in the United States and
220. 7:21also abroad, it's in two places. It's in
221. 7:25home equity
222. 7:26and it's in the stock market. So when
223. 7:28you look at housing
224. 7:30and you take someone who owns a a home
225. 7:32and we'll talk about it. I know it's
226. 7:33hard to buy homes right now.
227. 7:35Uh but when you look at people who own a
228. 7:36home versus people who rent,
229. 7:39homeowners in America follow this for
230. 7:41one second. Homeowners in America are
231. 7:43worth 40 times more than renters. So,
232. 7:48the average homeowner in America today
233. 7:51is worth over $400,000.
234. 7:54>> But, this doesn't establish causation. I
235. 7:56That doesn't mean that buying a home
236. 7:58made them rich, right?
237. 7:59>> It actually does, and I'm going to go
238. 8:01through that here. So, the average
239. 8:02renter is worth $10,000.
240. 8:05Right? So, why why does buying a home
241. 8:08build wealth? And how much wealth in the
242. 8:10United States is now in home equity?
243. 8:12Wall Street Journal just ran an article
244. 8:14on this, came out 2 days ago. There's
245. 8:16$34 trillion now in home equity in
246. 8:20America.
247. 8:21This number has gone up 90% since before
248. 8:25COVID.
249. 8:27The other money
250. 8:29is in retirement accounts, which is
251. 8:3160-70% in stocks.
252. 8:33There's $45 trillion now
253. 8:36in retirement accounts. So, those two
254. 8:38things alone equal $80 trillion.
255. 8:42Right? Like, when you want to go like,
256. 8:44"Where are the breadcrumbs? Where is
257. 8:46wealth being created?"
258. 8:48It's right in front of us. Now, the
259. 8:49problem that we have in the United
260. 8:52States, but also look, we're here in
261. 8:53London right now. The problem we have in
262. 8:55so many cities is that real estate keeps
263. 8:57going higher and higher and higher.
264. 9:00And people's incomes are not keeping
265. 9:02pace with the cost of buying a home.
266. 9:06So, when someone comes on a show like
267. 9:07this and says, "Look, you don't have to
268. 9:09buy a home.
269. 9:10It's cost more to have a house than
270. 9:12rent. You You know, I I watched one of
271. 9:14the shows. I won't say who it was. It
272. 9:15doesn't matter. They all said the same
273. 9:17thing. Don't buy a house. You'll be
274. 9:19trapped. You'll have to pay You'll have
275. 9:22to pay real estate taxes, and you'll
276. 9:24have to pay insurance, and things
277. 9:26break." They go through all these
278. 9:28expenses.
279. 9:30And it makes it sound like, "Oh, yeah,
280. 9:32if I rent, it'll be cheaper."
281. 9:34No, who who do you think pays these
282. 9:36expenses when you rent?
283. 9:39You do. The landlord passes the cost of
284. 9:43these expenses on to the renter
285. 9:46ultimately. Why do they do this? Because
286. 9:49people who buy real estate buy it for an
287. 9:52investment. They buy it for an
288. 9:54investment. They're not They're not
289. 9:55subsidizing these costs.
290. 9:58So, it's a hard thing to hear and
291. 10:00especially when you're young. Like I
292. 10:02have a a son who's 22. He's in Chicago.
293. 10:05He's going to move to New York City.
294. 10:07It'll be extremely hard for him to buy a
295. 10:09place in New York when he starts working
296. 10:11right away. Just will be. He probably
297. 10:13won't for two or three years. A lot of
298. 10:15young people when they move to major
299. 10:17city, they can't afford to buy right
300. 10:18away. When I came out of college, like
301. 10:21you, I was in credit card debt.
302. 10:23I had $12,000 in credit card debt. I
303. 10:25remember opening up my bills and having
304. 10:27the room spin
305. 10:29and thinking, "I'm never getting out of
306. 10:30credit card debt. How am I going to buy
307. 10:32a house?"
308. 10:33But I did. And in fact, I didn't buy a
309. 10:36home when I was young by myself.
310. 10:39I bought a home with a best friend. So,
311. 10:41how did I get my first house? First
312. 10:42house we bought was a quarter of a
313. 10:43million dollars. We put 10% down.
314. 10:47And my best friend and I, Andrew, we
315. 10:49split that down payment. So, we each put
316. 10:51$12,500 down. This is how we scraped it
317. 10:53together. The house was complete
318. 10:55fixer-upper.
319. 10:57And we didn't have enough money to make
320. 10:58the mortgage payments, so we rented out
321. 11:00bedrooms. And we had friends rent
322. 11:02bedrooms and that helped us cover our
323. 11:04mortgage. We scraped it together and
324. 11:06that's what a lot of people do when
325. 11:09you're young.
326. 11:10But if you don't get in the game of
327. 11:12homeownership and you rent in your 20s
328. 11:15and you rent in your 30s, you're going
329. 11:17to turn around in your 40s and having
330. 11:19not been built any net worth.
331. 11:21When I wrote The Automatic Millionaire
332. 11:2320 years ago,
333. 11:25two things have happened since then.
334. 11:28The stock market has gone up in 20 years
335. 11:32600%
336. 11:34>> Mhm. Okay, so if you had a
337. 11:36$100,000, just that is gone to $600,000.
338. 11:41If you bought a house, the house has
339. 11:43gone up 400%.
340. 11:46So when you read this book with all
341. 11:47these there's a whole chapter of updated
342. 11:49success stories.
343. 11:51There are a lot of ordinary people that
344. 11:53started saving 5, 10, 15, $20 a day,
345. 11:57bought a starter house, and today
346. 11:58they're millionaires.
347. 11:59>> So
348. 12:01am I not better off renting
349. 12:03and
350. 12:04investing in the stock market
351. 12:07versus buying a house?
352. 12:10Because obviously when I when I when I
353. 12:11buy a house, I'm paying a premium on the
354. 12:13house so that I can get a mortgage.
355. 12:16>> I want to bust this myth because what
356. 12:17happens is people come out and they go
357. 12:19the stock market I can tell you right
358. 12:20now the stock market over the last 20
359. 12:22years has averaged over 10% annually.
360. 12:24People go the returns are better in the
361. 12:26stock market than in real estate.
362. 12:28Yeah, but that's not apples to apple
363. 12:30comparison. Why?
364. 12:32When you buy a piece of real estate,
365. 12:35when you buy a home
366. 12:36people don't typically pay cash for
367. 12:38their first house.
368. 12:40They put down 20% and they borrow the
369. 12:42other 80%. So you take like an example
370. 12:46of a take a $200,000 home.
371. 12:48$200,000 home you put 40 grand in.
372. 12:51Home goes from 200,000 to 400,000
373. 12:54in 10 years. This has happened to so
374. 12:56many people in the last 5 years. Since
375. 12:59COVID there are markets all over the US
376. 13:01where housing prices have gone up 100 to
377. 13:03200%. So a person buys a $200,000 home,
378. 13:07they borrowed 80%, it's doubled, so
379. 13:10they've made 200,000 in profit.
380. 13:13They didn't put in 200,000, they put in
381. 13:1540.
382. 13:16So they got a five times return on their
383. 13:18down payment. They go to sell their
384. 13:21house
385. 13:22they don't pay taxes on the gain.
386. 13:25Because when you own a home, at least in
387. 13:26the United States, you own a home for
388. 13:27over two years if you're single, you get
389. 13:30$250,000 in tax-free gains. If you're
390. 13:33married, you get over half a million
391. 13:34dollars in tax-free gains. You get tax
392. 13:36deductions on the mortgages. So,
393. 13:39what happens is people come here and
394. 13:41they go, "You know what? You shouldn't
395. 13:42be You shouldn't be tied down. You need
396. 13:45to be flexible when you're young. You
397. 13:47don't want to have the responsibility."
398. 13:50And you should take the extra money and
399. 13:52you should put it in a mutual fund. And
400. 13:54you know what happens in the real world,
401. 13:55Stephen? People don't do that.
402. 13:57They rent an apartment that's nicer than
403. 13:59what they can afford, and they spend all
404. 14:01their money. And then they turn around
405. 14:03in their mid-30s, and they have no
406. 14:06equity cuz they haven't bought anything,
407. 14:08and they also haven't saved money.
408. 14:11It is an absolute freaking myth
409. 14:15that people take this extra money that
410. 14:17they could have used to buy a house, and
411. 14:19they're going to put it in the stock
412. 14:20market. They don't do that. And that's
413. 14:23why, also by the way,
414. 14:26corporate America got into the game of
415. 14:28buying up real estate all over America,
416. 14:32houses, and building apartments to rent
417. 14:35to an entire generation, hoping [snorts]
418. 14:39these people never buy.
419. 14:43This like 10 days ago, Trump came out
420. 14:45and basically said he wants the
421. 14:47institutions out of buying up all the
422. 14:49homes in America.
423. 14:50Why does he want to do that? Because he
424. 14:52cuz he recognizes
425. 14:55how serious of a problem it is to have a
426. 14:57generation of Americans who are renters.
427. 15:01I'm telling you, when you look at
428. 15:03average Americans aver- I'm talking
429. 15:05about ordinary Americans, when you look
430. 15:06at where their wealth is, it's in home
431. 15:08equity, and it's in the stock market.
432. 15:10And this is the last thing I'll say.
433. 15:13Generational wealth is created,
434. 15:17for better or worse, through home
435. 15:18equity.
436. 15:20So, when you look at what you you asked
437. 15:22the question about causation.
438. 15:25If a family doesn't buy a home,
439. 15:28the likelihood the next generation can
440. 15:30buy a home is very low.
441. 15:33Because it's the when the someone dies,
442. 15:36the money that is in the house, that
443. 15:39home equity,
444. 15:40is often what transfer transfers to the
445. 15:43next generation, helps the next
446. 15:44generation buy a house.
447. 15:46>> I was looking at some stats here cuz I
448. 15:47want to what I want I I wish I could say
449. 15:50sit down all of the guests that have
450. 15:51been on my show that have had a
451. 15:52difference of opinion and if said that
452. 15:54buying a house is a bad investment.
453. 15:55>> be a really interesting conversation,
454. 15:56right?
455. 15:57>> be a really interesting conversation.
456. 15:58What I've done as an alternative to that
457. 16:00approach is I've pulled up what they've
458. 16:02said. And I'm going to give you some of
459. 16:03the things they've said just so so you
460. 16:05can rebuttal them um and have your say
461. 16:07on them. One of the things that they
462. 16:09often say is that long-term real
463. 16:11inflation-adjusted home price
464. 16:13appreciation in the US is about 1%
465. 16:15annually. And one of my guests cited
466. 16:18Robert Shiller as the evidence of that.
467. 16:20After maintenance,
468. 16:22and which usually equals 1 to 2%, and
469. 16:24property taxes, which equals about 1%,
470. 16:25insurance and transaction costs, the net
471. 16:28real returns approach roughly zero on
472. 16:30average.
473. 16:31So, when you say housing is a great
474. 16:33investment, are you referencing the
475. 16:34gross appreciation, which is the
476. 16:36the total appreciation, or the net
477. 16:38returns after taxes, maintenance,
478. 16:39insurance, and selling costs?
479. 16:41>> So, when you dig into these kind of
480. 16:43numbers like this,
481. 16:45what they are is they're numbers, but
482. 16:47they're not real world. Right? So, like
483. 16:49when you when you talk to someone who
484. 16:50owns a home today and they've owned it
485. 16:52for 20 years,
486. 16:53and you ask them,
487. 16:55"How much of your net worth is now in
488. 16:57the equity in your house?"
489. 17:00Over 50% of their net worth is in their
490. 17:02house.
491. 17:03You will see people on your YouTube
492. 17:05channel that literally, if you read the
493. 17:07comments, and I'm sure you do,
494. 17:08>> I do, yeah.
495. 17:09>> where people say, "It's not true. There
496. 17:11was I read a comment yesterday on your
497. 17:13YouTube page. All I know is
498. 17:16I bought a house and it's gone up in
499. 17:18value three and a half times and the
500. 17:21rent when I bought the house was $1,200
501. 17:23and the rent today to buy that if I had
502. 17:25that house
503. 17:26if I was renting it would be $4,000.
504. 17:29So, the thing is you have to understand
505. 17:32is that rents always go up, Stephen.
506. 17:35Like I live in New York City for 18
507. 17:38years.
508. 17:40When I moved in New York City in 2001
509. 17:44a really nice apartment
510. 17:47a nice apartment was like $6,000 a
511. 17:49month.
512. 17:50When I left New York, that same
513. 17:52apartment was $25,000 a month.
514. 17:56Follow the Follow the insanity of that
515. 17:58math. Now, that apartment went from
516. 18:00being
517. 18:02a $2 million apartment to a $5 million
518. 18:04apartment. So, I could have been
519. 18:06[clears throat] renting it, but in my
520. 18:08case I owned it
521. 18:09and it went up in value $3 million.
522. 18:12So, I have friends who have been renting
523. 18:14in New York for 20 years. They have
524. 18:16built no net worth. I have no vested
525. 18:18interest in this conversation, meaning I
526. 18:20don't sell real estate. I'm not a real
527. 18:22estate agent. I'm not selling real
528. 18:25estate.
529. 18:26I've just seen in the real world how
530. 18:28people have built wealth. The The The
531. 18:30The McIntyres in this book, The
532. 18:32Automatic Millionaire, when they came
533. 18:34into my office and they were worth $1.8
534. 18:36million
535. 18:37and he was 52 and able to retire having
536. 18:41earned an average of $40,000 a year
537. 18:44all their money wasn't in the stock
538. 18:46market. They had bought a home in San
539. 18:48Leandro, California. What he What they
540. 18:50called a middle-class neighborhood.
541. 18:53Their home at the time was worth about
542. 18:54$300,000.
543. 18:56They had paid their mortgage off and
544. 18:58they had bought one more house on their
545. 19:00street. They rented the first house.
546. 19:03They bought a second house on their
547. 19:04street. They paid that mortgage off.
548. 19:07And so, they owned two homes free and
549. 19:08clear.
550. 19:09One house they got income from. One
551. 19:11house they lived in with no debt, and
552. 19:13then they had saved money in their 401k
553. 19:15plan.
554. 19:16>> So, if I was uh a young person or might
555. 19:19be a young person, a middle-aged and
556. 19:20older person
557. 19:21who took my down payment that I was
558. 19:23going to pay into the house, if let's
559. 19:24say it was say my down payment was
560. 19:26$20,000, and I put that into the S&P 500
561. 19:29instead,
562. 19:30over the long run, won't that grow
563. 19:32larger than the total home equity
564. 19:35potentially?
565. 19:36>> Here's why the index fund theory doesn't
566. 19:39work.
567. 19:41You can't live inside an index fund.
568. 19:45You [snorts] can't live inside a mutual
569. 19:46fund. You have to live somewhere as long
570. 19:48as you're alive. Here's what people
571. 19:50should do.
572. 19:52Take a look at what you're paying in
573. 19:54rent.
574. 19:56Now, ask yourself a question.
575. 19:59If I'm paying 5,000 a month in rent,
576. 20:02which lots of people are, right? Do you
577. 20:04know people paying 5,000 a month in
578. 20:05rent?
579. 20:06>> Yes.
580. 20:06>> Okay. So, they're paying 60,000 a year.
581. 20:08Let's take that number.
582. 20:09>> Yeah.
583. 20:10>> So, over 10 years it has been $600,000
584. 20:13in rent.
585. 20:14>> Yeah.
586. 20:15>> If the rent doesn't go up.
587. 20:16>> Yeah.
588. 20:17>> In 20 years they're going to spend 1.2
589. 20:19million in rent
590. 20:21if the rent doesn't go up.
591. 20:23In 30 years they will have spent
592. 20:25$2 million in rent if the rent doesn't
593. 20:28go up. But, the rent does go up.
594. 20:30So, the question you just have to ask
595. 20:32yourself is am I going to take all this
596. 20:33money that I'm spending on rent and
597. 20:35never build anything?
598. 20:38And if you really believe that renting
599. 20:41is better than owning,
600. 20:42then you should still consider the idea
601. 20:44of buying something then that somebody
602. 20:46else rents.
603. 20:47Cuz I promise you somebody's getting
604. 20:49rich in the transaction.
605. 20:51If you're the renter, you're not the one
606. 20:53who's getting rich in the transaction of
607. 20:55renting.
608. 20:56It is a great short-term solution
609. 20:58renting.
610. 20:59>> [snorts]
611. 20:59>> It is not a great term long-term wealth
612. 21:01building solution.
613. 21:03>> If you love the Dave Ramsey brand and
614. 21:04you watch this channel, please do me a
615. 21:06huge favor, become part of the 15% of
616. 21:09the viewers on this channel that have
617. 21:11hit the subscribe button. It helps us
618. 21:12tremendously, and the bigger the channel
619. 21:14gets, the bigger the guests.