Buying your own home has always been one of the best ways to build wealth and achieve financial security and, even in these uncertain times, that fact has not changed. I recently spoke to bestselling author and financial expert David Bach about his new first-time homebuyer challenge, a free online course that offers a roadmap to help people go from renting to owning a home. Here are some of the top takeaways from that interview:
The Fundamentals of Financial Success Never Change
People who can afford to retire early almost always do two things right: They buy their own home and pay it off; and they pay themselves automatically using a 401k plan. Regardless of market or societal conditions, the fundamentals of financial success remain the same. When it comes to your money, boring is beautiful!
Real Estate Is the Easiest Way To Build Wealth Over Your Lifetime
There are two primary ways to build wealth in America: homeownership and the stock market. While investing in stocks can be very lucrative, you can’t live inside a portfolio! You’ll always have to live somewhere, so you must decide who will profit from this – you or your landlord. Homeowners are worth approximately 44 times more than renters and the great news is that, because of historically low interest rates, there’s never been a cheaper time to buy. If you already own a home, meanwhile, you now have the opportunity to refinance and potentially save yourself a fortune. Because equity builds in a home year on year, real estate is the ultimate escalator to financial freedom. It creates wealth not just for you, but for the next generation of your family too.
In Difficult Times, You Can Still Find Opportunities To Grow and Succeed
Due to Covid-19, we are currently experiencing a global recession. There’s no doubt this will cause hardship, but it will also result in financial security and wealth for those who are prepared to take action quickly. More millionaires were created on the back of the last recession than during any previous period in history. This time, the opportunities to build financial freedom might be even greater. Remember, when everybody’s telling you that the world is coming to an end, you can still look for ways to grow and succeed. Begin by getting in front of the clients you already have. Check in and connect with all your existing customers to see how you can serve them. In uncertain times, you’ve got to work, not worry.
If you want to learn more about the five critical steps of the homebuying process, potentially save thousands over the life of your loan and avoid the common mistakes that most homebuyers make, listen to the latest episode of “The Brian Buffini Show.”