In today's video,
we are going to talk about how
to build wealth without buying
a house.
I know a lot of people talk
about how important it is to
buy a house in order to grow
your net worth,
but that is not necessarily
the case.
There are other strategies we
can use to build our wealth,
All right?
Even though I do like
investing in real estate
properties,
let's talk about how to build
wealth without buying a house.
Another popular way to build
wealth besides investing in
real estate is by investing in
the stock market.
This is one of the most
popular ways because it is
pretty simple to do.
Once you understand the basics
of investing in the stock
market,
you can even automate your
investing and make it very,
very passive.
You can buy individual stocks
inside of the stock market.
You can also buy index funds,
which have a whole bunch of
stocks inside of just one
fund.
You can also buy ETFs exchange
traded funds,
which are similar to index
funds in the regard that they
are tracking something else
and have a whole bunch of
stocks inside of just one etf.
You can also buy REITs real
estate investment trusts.
There are a number of
different options you can
invest in inside of the stock
market.
This is a great way to build
your wealth over time.
I have used this way along
with real estate,
but it has worked very well
for me.
I've been very successful with
my stock market investing.
I do want you to remember that
investing in the stock market
does come with risk.
It is not risk free.
So we need to be careful on
what we are investing in and
what our investment strategy
is.
And if you want help getting
started investing in the stock
market and figuring out a good
investment strategy for you,
I have a free masterclass.
I will leave a link below in
the description and you can
check that out.
The second part of investing
in the stock market is
choosing your investment
accounts.
There are retirement accounts
that you can invest in,
such as a 401K or a Roth IRA
or a traditional ira,
or there are even accounts for
business owners like a SEP IRA
or a simple IRA or even a
brokerage account.
Depending on which type of
account you choose,
you can get a tax break right
now or you could pull your
money out tax free later on.
And if you want to know more
about some of these accounts,
I do have another video for
you.
I will leave a link above.
I personally have invested in
a 401k when I had my nine to
five job,
my employer offered that and
also offered a match,
which is essentially free
money.
So I definitely invested up to
the match in my 401k.
I also have set up a Roth IRA
and a traditional ira,
and then I have a brokerage
account as well.
And these accounts are all a
little bit different,
but they all allow you to
invest in the stock market to
build your wealth without
buying a house.
And then the third part of
building wealth without buying
a house is by investing in a
business,
you can set up your own
business and put money inside
of that business and grow it
and build your wealth that way
you could even invest in
someone else's business.
I was actually going to do
this a while ago.
My friend was starting a
business where she was going
to make modest dresses and
sell them.
And so I asked her to give me
more details about that,
and as she got further down
the line,
it turned out it wasn't going
to be a great business for
her.
So I did not end up investing
in that business.
But that can be an option.
There are different businesses
out there that are looking for
investors.
So if you are not the
entrepreneurial type and you
don't want to set up your own
business and invest that way,
you can definitely look for
other businesses to invest in.
And of course,
investing in a business may
not always turn out the best.
It is a risky,
but we can do our homework
beforehand and make sure that
we feel good about that
investment.
And just like when I started
my own business,
I was nervous to do that and I
wasn't sure how things would
go,
but I had things in place that
if it didn't work out,
I could fall back on that and
even get another nine to five
job.
And luckily,
I haven't done that and I
really enjoy my business.
And just to give you another
example,
I started following Brooke
Castillo.
She is a life coach and she
started her own business and
it has turned into a huge
business where she makes
millions of dollars every
single year.
You just never know what the
potential can be or what the
possibilities are until you
actually start.
Just be aware of the risk
associated with doing that.
And then the fourth part to
building wealth without buying
a house is to invest in real
estate.
That's right,
I said real estate,
but we're not actually going
to purchase a physical house.
You can invest in real estate
inside of the stock market.
You can invest in what are
called REITs,
real estate investment trusts.
And these REITs invest in real
estate,
but you are investing in this
type of real estate through
the stock market.
So you are just buying a share
or multiple shares of a REIT
and getting exposure to real
estate without having to
purchase the physical
properties and manage them
yourself.
And then part five to building
wealth without buying a house
is to take a look at our own
personal financial situation
and we can decrease our
expenses and increase our
income.
This is one of the simplest
ways to get started building
wealth,
taking a look at our own
financial picture and making
adjustments,
making improvements so that we
have more money to invest.
You wanna make sure that you
know what your financial
situation is,
whether you have a spending
plan or you are using a
budgeting app.
I personally like using
Empower.
It used to be called Personal
Capital,
but that way I can see my full
financial picture in just one
place very,
very quickly.
And I can open that app every
single morning and see exactly
what expenses have happened,
what income has come in,
and if there are any problems,
I can make adjustments very,
very quickly.
And I can also see where I'm
at with where I'm spending my
money and I can make
improvements.
And also I can see exactly how
much I'm spending on
everything.
So if there is something I
feel like is priced too high,
maybe my auto insurance is too
high,
or my home insurance,
which may be your renter's
insurance if you aren't buying
a house,
but you can take a look at all
of those expenses and then you
can call the provider and see
if they can offer you a
discounted rate if you pay
every year or every six
months,
something like that.
Or just call a different
provider and get another
quote.
And that could be lower,
you could switch over.
It's just nice when you can
see everything in one place.
If that's something you're
interested in,
I will leave a referral link
below.
You can click on that instead
of a free Empower account.
But if you don't like the
apps,
that's totally fine.
Just make sure you are
tracking your expenses and
then you can make adjustments
because what gets tracked gets
measured and gets improved.
If we don't have a clue about
where our money is going,
we can't really improve it.
And just as a side note,
I know a lot of people say,
you need to buy a home,
it's an investment,
but if it is not making your
money work for you,
it's not really an investment.
When I purchased my very first
property,
I was excited to do that,
but I also had roommates.
So I was getting cash flow
every single month from my
roommates because I bought
that property,
I was able to make my money
work for me.
If I just own a house and I'm
not monetizing it in any way,
then it's not actually making
my money work for me.
Yes,
it will appreciate in value
over time,
but in order to capitalize on
that appreciation,
I would have to sell my
property and either buy
another place or rent another
place.
And a lot of times people
don't really think about that.
They just think,
oh,
look at my net worth.
I have a really high net worth
because my house value is so
high,
but it's not really doing
anything for you.
There's also a lot of expenses
that go along with owning a
home.
For example,
when I bought one of my
properties,
it has a really large yard,
so I have to maintain that
yard.
And someone that had owned it
before planted huge cottonwood
trees in the backyard,
and three of them were half
dead.
One was completely dead,
so I had to pay to get those
removed,
which is pretty expensive.
There are just a lot of costs
that go along with home
ownership and not only the
yard area,
but replacing appliances and
replacing a roof,
or if the driveway is cracked,
getting that fixed.
There's all different expenses
you have to pay for.
So it's not just about buying
a home and immediately
creating more money for
yourself.
There are expenses that you
have to pay,
and depending on your
situation,
it could definitely be better
to rent,
especially if you like to move
around a lot.
For me,
it's worked great to invest in
real estate because I make
those assets work for me.
I rent them out,
and I have roommates that help
pay my mortgage payment.
Comment below and tell me one
way you are going to build
wealth without buying a house.
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Thanks so much for watching.
I'll see you in the next
video.