Lessons
Introduction To Workshop
10:05 2Meet The Automatic Millionaire
11:47 3Find Your Latte Factor
10:27 4Couples & Money
03:48 5The Best Financial Apps & Tools
06:54 6Pay Yourself First!
12:50 7The 5 Biggest Retirement Account Mistakes
07:23 8Retirement Accounts & Investments
06:08Organize Your Money
05:50 10Crush Your Debt
08:31 11Learn Your Credit Score
04:47 12Be A Homeowner Not A Renter
08:01 13Create A Financial Protection Plan
05:52 14Build A Dream Account
02:12 15Grow Your Income
14:51 16The 6 Biggest Mistakes Investors Make
07:44 17Smart Women Finish Rich
04:26 18Your Purpose-focused Financial Plan
07:59Lesson Info
Be A Homeowner Not A Renter
probably one of my favorite topics other than pay yourself first is be a home run or not a runner. So I am an unabashed crusader campaigner, believer in real estate from home ownership period, and then it never changes. So, like one of the great recession, it and home prices were going down. And people are like, Oh, what do you mean? Homeowners have now, like I think it's on sale. Like I think I could go to Miami and Las Vegas in San Francisco, in New York and all these places in Arizona and now owns Air off 50%. I think the smart investment that you'll probably ever make in your lifetime is the homes that you buy and living. So I've made a whole lot of money from investing and the most money that made buying a house and living in it the best investment you're gonna make a home to live in. This is like the return of real estate guys. Real estate always returns. Here's what you should know. Here's the truth. This is really important for millennials. Okay, so this is an old slide. I'm go...
nna show you the new slab 1963. Real estate was $18,000 for a house. Remember I told you that my parents bought their first home. It was $27,000. Oakland, California Nice house to, uh, average price of a home. We're looking at $204,000 in 2011. By the way, you can see here. Market went up. Market came down. I do interviews. People like markets. Real estate is never coming back again. Really? Here we are. Here is the real estate market. It hasn't come back again. We're now at 2 90 in for an average price. How many of you dry? Always. Just. Most people today are driving cars that caused more than a home cost in 1963. So here's the benefits of real estate, you guys. It's pretty darn simple. Number one. It's forced savings. So 64% of Americans on a home all kinds attention to the fact that's less than it's ever been. It's only 3% less than it used to be. Um, it's leverage the house that I bought with my buddy. We didn't put down $225,000. We put down 12,500 each. And we borrowed 2000 from the bank and we got leverage, which is called other people's money, otherwise known as the bank's money. Um, we got tax breaks. You get tax breaks. One of the best tax breaks left in America is a mortgage deduction. Probably don't think it's going away. Um, actually, I don't think going away. I don't think more deductions are ever going away. I think they think that this is too big of a deal in America. You also can by a home, sell it and get told tax free games. So when you're single, you can sell home, make $250,000. If you're single and not pay taxes, there's nothing else you could do that with. You can be married and you can sell it. Can you get 1/2 a $1,000, in gains? And you could do that every two years. I talked about that start late, finish rich. You get the pride of ownership just tends to feel better owning something than renting. Um, it can be more work. Not gonna you know, there's no doubt like the beauty of renting when things go wrong is it's not your problem. Real estate proves to be a great investment. Just does. I just showed it to you. You also can't get rich. Renting the average renter in America is worth less than $5000 in the average homeowner today is worth over $172,000. Uh, these numbers vary from year to year, but on average, homeowners are worth 31 to 46 times more, then ruptures. So millennials talking to you right now, the single biggest mistake that millennials are making financially is putting off buying a home, and part of it's because it's expensive by home. But it was expensive by home when I bought a house. You gotta scrape and scrap, borrow and figure it out, and sometimes you do it with friends. You're not buying a dream home, but you have to get in the game of real estate because real estate is the escalator to wealth. And if you're in a good location in CS clear, that goes a lot faster now. Not all markets do what, a San Francisco or New York or Chicago or San Diego? Our Air monologues markets Dio so depends on your market also. So, a mortgage payment Here you take a $300,000 mortgage and you have a $1500 a month mortgage payment. If you pay 7 50 every two weeks, what happens is you make one extra payment a year. And so, in this example, that mortgage at 4.5% this is a recent calculation. Where to run it Bankrate, A $3000 mortgage of 4.5%. You're going to save $40, pay the mortgage off in 25 years. All you did was take your mortgage payments split in half, pay off every two weeks. This is where you should all go now. I've talked about this for over a decade. When the automatic Miller came out, I talked about this so you would think everybody does this. It's still a really small percentage. It's a great technique. Most banks now offer it. So call your bank and see, Do they offer a bi weekly payment plan? Uh, in most cases, they're not charging for it now, and I think it will help you pay your home off earlier. Let me tell you something, guys. A lot of people are retiring off their homes. They're selling their homes and expensive cities and their relocated people relocating from California. Where they going? Tell me where they going. Sounds Kota, Denver, Oregon, Arizona, you say, boss Pfosten, Las Vegas, Reno. They're going to all these places They're selling their home that they paid 1/4 $1,000,000 for It's worth a 1,000, today. It's the primary savings vehicle. They're selling it tax free. They're moving over in Arizona, they're bonded $200 nor home, and they're taking $70,000 they're putting in investment down there. Living off the interest happens every single day. If your home and your renting 30 years from now and you keep renting, it's not happening to you. So you have to be in the game of home ownership. Um, which takes me to these are all the benefits of the biweekly mortgage plan. It's faster. It's easier. It's automatic. I want to go into how to go from homeowner to automatic milliner homeowner going to do what you were just sex. So how do you how do the McIntyre's do it? They bought a home. They paid the mortgage down that home. Now. Cash flowed so they could rent it. They took a little bit of home equity out of that property, and they used it to buy another home on the same street. And that's how they bought the next house. He only had two homes and interesting. They bought it on the same street. They didn't do what most people do. So most people America, they buy a starter house. So they buy a three bedroom, two bath house. Over time, they build a family. Then they buy a bigger house, so they sell their home and then they go and get a bigger more is in a bigger home, which can work, but it doesn't lead to owning rental properties. So if you're going to ever pull equity out of your house, the only thing I want you to pluck would you have your house for Is it up asset? Not a liability. I want you to pull equity out to buy an investment, not to pay off a credit card
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