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What is something I should not do with
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my money if I want to be wealthy?
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>> If your goal is to become financially
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independent at a young age, you probably
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don't want to go buy a house. The reason
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you want to buy a house is because
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houses dramatically inflate by and large
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your cost of living. If you stay in a
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apartment that is just enough to meet
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your needs, your costs will be lower.
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>> Explain why my cost of living goes up if
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I buy a house. It doesn't have to, but
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people people typically buy the most
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house they can possibly afford. The
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industry drives them that way. If you go
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to a real estate agent and you say, "I
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think I'm I want to buy a house." Right?
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First question they're going to ask you
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is, "How much did you make?" And then
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you go to the bank and you say, "Okay, I
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want to buy a house. How much will you
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lend me?" And they'll say, "How much did
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you make?" And then they'll come back
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with the large number of how much
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they're willing to lend you. If you
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follow those guidelines, you're going to
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wind up with a house that's going to be
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a burden. You are not buying it from a
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position of strength. You are stretching
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to buy it. You are borrowing the most
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money a bank's willing to give you. You
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probably don't want to do that. When you
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buy that house, I don't know that I've
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ever known anybody, including me, by the
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way, who's owned a house without doing
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renovations on it. So, you've got those
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costs. You're going to furnish that
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house cuz you're probably buying more
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square footage than you were renting
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before. You're going to need new
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furniture. Or maybe you just want better
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furniture for your new house. Maybe new
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appliances, landscaping, taxes,
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maintenance. I mean, the the list is
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endless. And people say, "Well, you
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know, I can buy this house, and my
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mortgage is the same as my rent."
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Well, yeah, but your mortgage is just
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the starting point. You've got all these
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other expenses with the house, and the
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other thing is they are variable
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expenses. On a previous conversation
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where we talked about whether you should
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buy a house, someone said, "I bought a
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house and it's the best thing I ever
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did." Right? It's launched my mindset in
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new directions. Remember that having
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your own space has profound
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psychological impacts and can be
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life-changing for some of that don't
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live in a healthy environment. The
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psychological impact of buying a house
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>> for him. Obviously, it's absolutely
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true.
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I am not anti- house. As I mentioned a
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moment ago, I've owned houses most of my
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adult life, but I've never bought them
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because I thought they were an
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investment. I bought them because I
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thought they would enhance my life in a
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way I wanted it enhanced. They would
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make my life better. They are, in my
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view, an expensive indulgence. And if
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you can easily afford it, then by all
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means buy the