00:00

Alright, everyone. This episode is gonna make a bunch of people angry. I think it's gonna make a bunch of people angry. And here's why. So we're gonna discuss renting versus buying. I saw recently on TikTok or something like that. There were so many people complaining that it's too expensive to buy a house and they're complaining about renting.

Alright, everyone. This episode is gonna make a bunch of people angry. I think it's gonna make a bunch of people angry. And here's why. So we're gonna discuss renting versus buying. I saw recently on TikTok or something like that. There were so many people complaining that it's too expensive to buy a house and they're complaining about renting.

00:16

And I've got a surprise. I think it's way better to And I'm gonna explain my reasoning.

And I've got a surprise. I think it's way better to And I'm gonna explain my reasoning.

00:22

And I know that on the surface, that's gonna make a lot of people angry, but hear me out. And we have my friend, Ramit Safety. Ramit famous for writing a book called I will teach you to be rich. He also has a famous Netflix show called I will teach you to be rich. And he gives his explanation as well. I think this might anger a bunch of people. Listen to the entire thing before you judge and then comment on YouTube. So go to YouTube and comment and let me know what you think. And by the way, I just looked at YouTube right now.

And I know that on the surface, that's gonna make a lot of people angry, but hear me out. And we have my friend, Ramit Safety. Ramit famous for writing a book called I will teach you to be rich. He also has a famous Netflix show called I will teach you to be rich. And he gives his explanation as well. I think this might anger a bunch of people. Listen to the entire thing before you judge and then comment on YouTube. So go to YouTube and comment and let me know what you think. And by the way, I just looked at YouTube right now.

00:51

Seventy percent of people who watch our videos are not subscribed to our channel. That is ridiculous to me because we have a gentleman's agreement with this podcast. And what that what does that mean? That means if you've ever listened to more than one video or listened to more than one podcasts.

Seventy percent of people who watch our videos are not subscribed to our channel. That is ridiculous to me because we have a gentleman's agreement with this podcast. And what that what does that mean? That means if you've ever listened to more than one video or listened to more than one podcasts.

01:06

You need to go to YouTube, go to my first million, and click subscribe. We call it the gentleman's agreement because we can't track that you're actually doing it. But Sean and I, when people like Ramit, we make content for you all the time. And all we ask in exchange is just click and subscribe. It means very little to you. It costs you very close to nothing, and it means a lot to us. So please do that. And I hope you enjoy today's episode. And let me, let me know what you think at the comments of YouTube if you agree or disagree. Renting versus buying. Alright. Let's get to it.

You need to go to YouTube, go to my first million, and click subscribe. We call it the gentleman's agreement because we can't track that you're actually doing it. But Sean and I, when people like Ramit, we make content for you all the time. And all we ask in exchange is just click and subscribe. It means very little to you. It costs you very close to nothing, and it means a lot to us. So please do that. And I hope you enjoy today's episode. And let me, let me know what you think at the comments of YouTube if you agree or disagree. Renting versus buying. Alright. Let's get to it.

01:40

Alright. We're live. Ramit. So today,

Alright. We're live. Ramit. So today,

01:43

I had you on. Because you and I are a little bit of an agree an agreement on a few topics. One of them being

I had you on. Because you and I are a little bit of an agree an agreement on a few topics. One of them being

01:49

that even if we think that you can afford it, which I'm sure

that even if we think that you can afford it, which I'm sure

01:53

we could. We could afford it by a home. We actually prefer to rent. And most people, at least online, and amongst even our friend group, think that that's insane.

we could. We could afford it by a home. We actually prefer to rent. And most people, at least online, and amongst even our friend group, think that that's insane.

02:03

And I wanted to have you on to discuss

And I wanted to have you on to discuss

02:06

kind of your opinion on buying versus renting to discuss some of the numbers behind it. And we're gonna get tons of comments. We're gonna try and defend our argument against all of them before they actually come. I don't use it. I'm I already know the answer.

kind of your opinion on buying versus renting to discuss some of the numbers behind it. And we're gonna get tons of comments. We're gonna try and defend our argument against all of them before they actually come. I don't use it. I'm I already know the answer.

02:19

Like, there's no defending. It's math. It's basic math. Here's my position. Let me state it very clearly because for the last thirteen years, I've gotten about a hundred and fifty comments a day telling me that I'm stupid.

Like, there's no defending. It's math. It's basic math. Here's my position. Let me state it very clearly because for the last thirteen years, I've gotten about a hundred and fifty comments a day telling me that I'm stupid.

02:33

But I think I turned into the Joker around two thousand twelve.

But I think I turned into the Joker around two thousand twelve.

02:37

When,

When,

02:37

you know, random people were telling me it never makes

you know, random people were telling me it never makes

02:41

sense to

sense to

02:43

rent. You're always throwing money away on rent You're not building any equity.

rent. You're always throwing money away on rent You're not building any equity.

02:49

Equity is really important. And what are you gonna leave to your kids? And on and on, I don't wanna pay my landlords rent, etcetera. And you actually do a funny job, by the way, of sharing the comments that you get on all your YouTube videos. Typically, the comments are something like land is always a good investment.

Equity is really important. And what are you gonna leave to your kids? And on and on, I don't wanna pay my landlords rent, etcetera. And you actually do a funny job, by the way, of sharing the comments that you get on all your YouTube videos. Typically, the comments are something like land is always a good investment.

03:03

Or Yeah. You're not really wealthy if you don't actually own land.

Or Yeah. You're not really wealthy if you don't actually own land.

03:08

Or, like, they People tell me that I'm poor because I don't own a house. Of all, that's actually quite insulting because not everyone can afford to buy a house

Or, like, they People tell me that I'm poor because I don't own a house. Of all, that's actually quite insulting because not everyone can afford to buy a house

03:18

doesn't mean you're poor just because you're renting. There are actually a lot of people who read by choice including

doesn't mean you're poor just because you're renting. There are actually a lot of people who read by choice including

03:24

me

me

03:24

and potentially you.

and potentially you.

03:27

But anyway, let's okay. Here's my position.

But anyway, let's okay. Here's my position.

03:30

For the biggest purchase of your life, which for almost everybody is a house, you have to run the numbers because sometimes

For the biggest purchase of your life, which for almost everybody is a house, you have to run the numbers because sometimes

03:34

it's

it's

03:39

financially

financially

03:40

beneficial to buy, and other times it's financially beneficial to rent. And this this should not be controversial. It's

beneficial to buy, and other times it's financially beneficial to rent. And this this should not be controversial. It's

03:47

like very straightforward, simple, especially if you have lived in a high cost of living city, New York, San Francisco, LA. I've lived in all three cities.

like very straightforward, simple, especially if you have lived in a high cost of living city, New York, San Francisco, LA. I've lived in all three cities.

03:57

However, for some reason,

However, for some reason,

04:00

saying that basic

saying that basic

04:01

concept is like me telling everybody the sky is green. And by the way, you said sometimes it is profitable. Sometimes it isn't. There's a a third part of that sentence, which is also who cares

concept is like me telling everybody the sky is green. And by the way, you said sometimes it is profitable. Sometimes it isn't. There's a a third part of that sentence, which is also who cares

04:13

like, that that is an important thing. When people when so usually my take on this situation,

like, that that is an important thing. When people when so usually my take on this situation,

04:19

I try my hardest never to use,

I try my hardest never to use,

04:23

certainty, like, certain words. So I I I would never say always or never. That's nonsense. That's crazy to say that. But usually my take is or my take now is Historically,

certainty, like, certain words. So I I I would never say always or never. That's nonsense. That's crazy to say that. But usually my take is or my take now is Historically,

04:33

in many cases, in fact, maybe even most cases,

in many cases, in fact, maybe even most cases,

04:37

it is buying a home is not more profitable.

it is buying a home is not more profitable.

04:41

Than renting.

Than renting.

04:42

And what people say is, well, I shouldn't so why are you buying a home? They'll say. And they're like, well, because it makes me happy. Why did I buy a steak last You know, why did I do this other stuff? This, you know, it makes me happy. Yeah. My other point is,

And what people say is, well, I shouldn't so why are you buying a home? They'll say. And they're like, well, because it makes me happy. Why did I buy a steak last You know, why did I do this other stuff? This, you know, it makes me happy. Yeah. My other point is,

04:54

that doesn't mean it's a horrible investment. Just saying compared to the alternatives, I actually think it's not great. And then and people will say, well, but I made money on my house in this house. I've done it before. And I say, yeah. It can happen sometimes. Yes. It definitely happens sometimes. And particular and they'll also say, so should I never invest in real estate? It's like, no.

that doesn't mean it's a horrible investment. Just saying compared to the alternatives, I actually think it's not great. And then and people will say, well, but I made money on my house in this house. I've done it before. And I say, yeah. It can happen sometimes. Yes. It definitely happens sometimes. And particular and they'll also say, so should I never invest in real estate? It's like, no.

05:14

Because

Because

05:15

investing in a apartment building or some type of development where it's the intention is cash flowing and the intention is number one investment. Many times, be a great idea. But historically, if you look at the trailing fifty years of the S and P five hundred, of the average,

investing in a apartment building or some type of development where it's the intention is cash flowing and the intention is number one investment. Many times, be a great idea. But historically, if you look at the trailing fifty years of the S and P five hundred, of the average,

05:29

home

home

05:33

growth, annual growth rate,

growth, annual growth rate,

05:35

and and rent that is of equal,

and and rent that is of equal,

05:38

quality.

quality.

05:39

If you just run the numbers, I think more often than not, in fact, not sometimes yes, sometimes no, more often than not, it's actually not as profitable. Or it's less profitable to buy than this to rent. Have you ever done, like, the historical math? I've seen the historical math on,

If you just run the numbers, I think more often than not, in fact, not sometimes yes, sometimes no, more often than not, it's actually not as profitable. Or it's less profitable to buy than this to rent. Have you ever done, like, the historical math? I've seen the historical math on,

05:55

how

how

05:55

the appreciation

the appreciation

05:57

of homes purchased homes, which shockingly for over about a hundred years

of homes purchased homes, which shockingly for over about a hundred years

06:03

is right around inflation. People find that very hard to believe. It's like three and a half percent, I think. And and what they typically will say their first response is is quite funny. They go, My house went up twenty six percent in the last two years. And I go,

is right around inflation. People find that very hard to believe. It's like three and a half percent, I think. And and what they typically will say their first response is is quite funny. They go, My house went up twenty six percent in the last two years. And I go,

06:18

I wonder if anything historically

I wonder if anything historically

06:21

a historical aberration happened in the last four years such as a worldwide pandemic

a historical aberration happened in the last four years such as a worldwide pandemic

06:26

and generational shifts. I wonder

and generational shifts. I wonder

06:28

But that comment is actually quite revealing because it reveals recency bias. The fact that what happened to us in the last two or three years is something that we extrapolate will happen forever. You hear people saying this all the time. They're like, remember when we were younger, it's like,

But that comment is actually quite revealing because it reveals recency bias. The fact that what happened to us in the last two or three years is something that we extrapolate will happen forever. You hear people saying this all the time. They're like, remember when we were younger, it's like,

06:43

people would say stuff like MySpace is always gonna be on top. Like, it's dominant.

people would say stuff like MySpace is always gonna be on top. Like, it's dominant.

06:47

That changed.

That changed.

06:49

People believe that right now about Amazon, Facebook, Apple. That will change in our lifetime. When there's a major world war, people believe things will never recover. They do. So if you wanna be a great investor, you know, you gotta look at a big, big, big picture. And sure, things have appreciated. That's awesome for the people who own a house. And they can make their payments. I think that's awesome. I'm really happy for them. But I still made more money renting that I would have owning. And by the way, I'm in the category where I I currently own a home. I own my home now. I'm moving, and I'm renting a house I'm I'm I haven't decided if I'm gonna sell my house or rent it out. I'm making that decision in the next couple weeks. But if I decide to sell it, I'm actually gonna have made a profit. Because I got very I got very lucky. And,

People believe that right now about Amazon, Facebook, Apple. That will change in our lifetime. When there's a major world war, people believe things will never recover. They do. So if you wanna be a great investor, you know, you gotta look at a big, big, big picture. And sure, things have appreciated. That's awesome for the people who own a house. And they can make their payments. I think that's awesome. I'm really happy for them. But I still made more money renting that I would have owning. And by the way, I'm in the category where I I currently own a home. I own my home now. I'm moving, and I'm renting a house I'm I'm I haven't decided if I'm gonna sell my house or rent it out. I'm making that decision in the next couple weeks. But if I decide to sell it, I'm actually gonna have made a profit. Because I got very I got very lucky. And,

07:34

it it just it worked out. Now, like, but here's gotta tell you something. You said something the other day on Twitter that I really liked.

it it just it worked out. Now, like, but here's gotta tell you something. You said something the other day on Twitter that I really liked.

07:41

You said

You said

07:42

the the older I get the more I appreciate

the the older I get the more I appreciate

07:46

what role luck played in my success.

what role luck played in my success.

07:49

What I said was what I believe is, basically, when I started my career, it was, like, pull yourself up by your bootstrap, make it happen. Like, it's only, the only one responsible for my wins and losses. And I actually think that that's an alright attitude to have when you're, like, doing it because you think the internal locus of control. Like, it is up to me. I have to do something great. But then when things work out,

What I said was what I believe is, basically, when I started my career, it was, like, pull yourself up by your bootstrap, make it happen. Like, it's only, the only one responsible for my wins and losses. And I actually think that that's an alright attitude to have when you're, like, doing it because you think the internal locus of control. Like, it is up to me. I have to do something great. But then when things work out,

08:10

in my favor,

in my favor,

08:11

I reflect after a few years that I'm like, oh my gosh, like, that worked out, like, perfectly and it had nothing to do with me. It just, like, For example,

I reflect after a few years that I'm like, oh my gosh, like, that worked out, like, perfectly and it had nothing to do with me. It just, like, For example,

08:21

when I sold the company,

when I sold the company,

08:22

the CEO of HubSpot, a few days after the deal closed, he got into a life threatening accident.

the CEO of HubSpot, a few days after the deal closed, he got into a life threatening accident.

08:29

And

And

08:30

had that happened

had that happened

08:31

three days before or one or ten one week or two weeks before the deal closed, everything could have changed. And that had nothing to do with me. It just was luck. And so there are many examples where you're like, it just got lucky.

three days before or one or ten one week or two weeks before the deal closed, everything could have changed. And that had nothing to do with me. It just was luck. And so there are many examples where you're like, it just got lucky.

08:43

And in my case of selling my home and buying my home, everyone thought it was not gonna be a good investment, and I didn't think it would be either.

And in my case of selling my home and buying my home, everyone thought it was not gonna be a good investment, and I didn't think it would be either.

08:50

And it just totally got lucky. That that is luck. I think that it's okay to be lucky. It's actually great. Fantastic. Sometimes luck strikes. Let's take it. Fantastic. But I also think

And it just totally got lucky. That that is luck. I think that it's okay to be lucky. It's actually great. Fantastic. Sometimes luck strikes. Let's take it. Fantastic. But I also think

09:00

super important to be honest about when you are good or when you are lucky. So I have a question for you because

super important to be honest about when you are good or when you are lucky. So I have a question for you because

09:08

I've found that when people buy

I've found that when people buy

09:11

a house,

a house,

09:13

they rarely want to rent afterwards.

they rarely want to rent afterwards.

09:16

And so now you're going to rent. What does that feel like for you? Alright. Everyone, a quick break to tell you about HubSpot, and this one's easy because I'm gonna show example of how I'm doing this at my company. When I say, I, I mean, not my team. I mean, I'm the one who actually made it. So I've got this company called Hampton. You could check it out join Hampton dot com. It's a community for founders. And one of the ways that we've grown is we've created these surveys, but we'll ask our members certain questions that a lot of people a lot of times people are afraid to ask. So things like what their net worth is, how their assets are allocated, all these, like, interesting questions, and then we'll put it in survey, and I went and made a landing page. So you can check it out at join hampton dot com slash wealth. You can actually see the landing page that I made And the hard part with this is with Hampton, we are appealing to a sort of a a higher end customer, sort of like like a Louis Vuitton or Ferrari. So I needed the landing page to look a very particular way. HubSpot has templates. That's what we use. We just change the colors a little bit to match our brand. Very easy. They have this drag and drop version of their landing page builder, and it super simple. I'm not technical, and I'm the one who actually made it. And once it's made, I then shared it on social media, and we had thousands of people see it and thousands of people who gave us their information, And I can then see over the next handful of weeks, this is how much revenue came in from this wealth survey that I did. This is where the revenue came from. So it came from Twitter. It came from LinkedIn. Whatever it came from, I can actually go and look at it. And I could say, oh, well, that worked. That didn't work. Do more of that. Do less of that. And if you're interested in making landing pages like this, I highly suggest it. Look, I'm actually doing it, but you could check it out. Go to the link in the description of YouTube and get started. Alright. Now back to MFM.

And so now you're going to rent. What does that feel like for you? Alright. Everyone, a quick break to tell you about HubSpot, and this one's easy because I'm gonna show example of how I'm doing this at my company. When I say, I, I mean, not my team. I mean, I'm the one who actually made it. So I've got this company called Hampton. You could check it out join Hampton dot com. It's a community for founders. And one of the ways that we've grown is we've created these surveys, but we'll ask our members certain questions that a lot of people a lot of times people are afraid to ask. So things like what their net worth is, how their assets are allocated, all these, like, interesting questions, and then we'll put it in survey, and I went and made a landing page. So you can check it out at join hampton dot com slash wealth. You can actually see the landing page that I made And the hard part with this is with Hampton, we are appealing to a sort of a a higher end customer, sort of like like a Louis Vuitton or Ferrari. So I needed the landing page to look a very particular way. HubSpot has templates. That's what we use. We just change the colors a little bit to match our brand. Very easy. They have this drag and drop version of their landing page builder, and it super simple. I'm not technical, and I'm the one who actually made it. And once it's made, I then shared it on social media, and we had thousands of people see it and thousands of people who gave us their information, And I can then see over the next handful of weeks, this is how much revenue came in from this wealth survey that I did. This is where the revenue came from. So it came from Twitter. It came from LinkedIn. Whatever it came from, I can actually go and look at it. And I could say, oh, well, that worked. That didn't work. Do more of that. Do less of that. And if you're interested in making landing pages like this, I highly suggest it. Look, I'm actually doing it, but you could check it out. Go to the link in the description of YouTube and get started. Alright. Now back to MFM.

10:50

So I'm moving to a place where I intend to rent I don't know how long I'll rent it for.

So I'm moving to a place where I intend to rent I don't know how long I'll rent it for.

10:55

Two years, five years. Don't know.

Two years, five years. Don't know.

10:58

And I wanted to rent a completely furnished home.

And I wanted to rent a completely furnished home.

11:01

And the reason being is I don't want I didn't wanna own much of anything. I didn't wanna own a lot of stuff because

And the reason being is I don't want I didn't wanna own much of anything. I didn't wanna own a lot of stuff because

11:08

I have a small house in in Austin, and it's twenty two hundred square feet, I have to fix stuff all the time, and that's a small place. And I have historically rented for three months out of the year when I go to Envisit family in New York. And I love it. I love being able to call someone. I just say fix this, please.

I have a small house in in Austin, and it's twenty two hundred square feet, I have to fix stuff all the time, and that's a small place. And I have historically rented for three months out of the year when I go to Envisit family in New York. And I love it. I love being able to call someone. I just say fix this, please.

11:26

It it just it it brings so much joy that I don't have to, like, go and, like, find a vendor or, like, fix something myself. And so it feels like there's a burden lifted off, a little bit of my shoulders. That's what it feels like.

It it just it it brings so much joy that I don't have to, like, go and, like, find a vendor or, like, fix something myself. And so it feels like there's a burden lifted off, a little bit of my shoulders. That's what it feels like.

11:39

Just from looking at you, I would have assumed you like to fix stuff. I do like to fix stuff,

Just from looking at you, I would have assumed you like to fix stuff. I do like to fix stuff,

11:45

but only stuff that I like to fix. So, for example,

but only stuff that I like to fix. So, for example,

11:48

like, I like to do Legos. That's fun for me. I like to work on old motorcycles, but I don't wanna have to fix, like, a an electrical thing in my home that it's reliant on, like, I don't have light tonight if I don't fix this.

like, I like to do Legos. That's fun for me. I like to work on old motorcycles, but I don't wanna have to fix, like, a an electrical thing in my home that it's reliant on, like, I don't have light tonight if I don't fix this.

12:02

Okay. Now

Okay. Now

12:04

looking at me,

looking at me,

12:05

You also agree that I like to fix stuff too. Right? Lot of tools. I A lot of I grime under my fingernails. Right? If I had to guess, You have never stepped foot in a home depot. Only

You also agree that I like to fix stuff too. Right? Lot of tools. I A lot of I grime under my fingernails. Right? If I had to guess, You have never stepped foot in a home depot. Only

12:18

the last time I went was when my dad made me go, which I was probably, like, Eleven years old. Yeah. My goal, my rich life is to never set foot in a home depot ever again. Ever.

the last time I went was when my dad made me go, which I was probably, like, Eleven years old. Yeah. My goal, my rich life is to never set foot in a home depot ever again. Ever.

12:29

So far, I'm forty one years old. I've done it

So far, I'm forty one years old. I've done it

12:33

I think I can keep it going. Okay. And so that's great that you know what you want. So when you're thinking of the buying versus renting thing,

I think I can keep it going. Okay. And so that's great that you know what you want. So when you're thinking of the buying versus renting thing,

12:42

is what percentage

is what percentage

12:44

of your equation is on math and numbers and what percentage is on emotion and happiness?

of your equation is on math and numbers and what percentage is on emotion and happiness?

12:50

Great question.

Great question.

12:51

In the beginning,

In the beginning,

12:54

almost all on numbers. So when I was renting in San Francisco, it was a steal.

almost all on numbers. So when I was renting in San Francisco, it was a steal.

12:59

Basically, the amount that I would have paid to own it was close to two times more for an equivalent place,

Basically, the amount that I would have paid to own it was close to two times more for an equivalent place,

13:06

then I moved to New York. And

then I moved to New York. And

13:09

I had a place in New York, a a pretty nice place, and I would always keep my eye on the real estate market just for kicks. And I was tracking stuff. And, of course, every year, I would negotiate my rent.

I had a place in New York, a a pretty nice place, and I would always keep my eye on the real estate market just for kicks. And I was tracking stuff. And, of course, every year, I would negotiate my rent.

13:21

And in a eleven year period, my rent went down four times. This is in Manhattan.

And in a eleven year period, my rent went down four times. This is in Manhattan.

13:26

So a lot of people think, like, rent only goes up. No. It doesn't. Depending on where you live, even depending on the segment you're in, rent can go down.

So a lot of people think, like, rent only goes up. No. It doesn't. Depending on where you live, even depending on the segment you're in, rent can go down.

13:34

At that point in New York,

At that point in New York,

13:36

when I ran the numbers for an equivalent place that was just two buildings over, same view, same square footage, same everything. It would have cost two point two times more to own than to rent. So let me break down the math because this is I was

when I ran the numbers for an equivalent place that was just two buildings over, same view, same square footage, same everything. It would have cost two point two times more to own than to rent. So let me break down the math because this is I was

13:51

mathematically oriented.

mathematically oriented.

13:53

Let's pretend that I was paying five thousand a month. Okay? If I was paying five thousand a month to rent,

Let's pretend that I was paying five thousand a month. Okay? If I was paying five thousand a month to rent,

13:59

than to own that place when I factor in taxes, maintenance, opportunity cost of the down payment transaction

than to own that place when I factor in taxes, maintenance, opportunity cost of the down payment transaction

14:04

cost

cost

14:08

all of it. Can I wait? Let me ask you about those numbers. So for opportunity cost, do you assume seven and a half percent?

all of it. Can I wait? Let me ask you about those numbers. So for opportunity cost, do you assume seven and a half percent?

14:13

Seven percent. Okay. So you assume seven percent. And then for maintenance, what do you what do you assume? Two percent of the property value?

Seven percent. Okay. So you assume seven percent. And then for maintenance, what do you what do you assume? Two percent of the property value?

14:19

A year? I in New York, yes. In other places, I would go lower, but New York is just inherently more expensive. Okay. And then,

A year? I in New York, yes. In other places, I would go lower, but New York is just inherently more expensive. Okay. And then,

14:29

eight and then in some buildings or,

eight and then in some buildings or,

14:31

apartment versus, other stuff, you'd have HOA.

apartment versus, other stuff, you'd have HOA.

14:34

New York. Correct. Like thousands per month. Very exclusive. Yeah. I Very. I have friends who have an HOA that's five thousand a month.

New York. Correct. Like thousands per month. Very exclusive. Yeah. I Very. I have friends who have an HOA that's five thousand a month.

14:42

Very expensive. Yeah. That's totally normal in a high end building in New York. Yeah. Completely normal. Alright. So you have opportunity cost. You have Yep. Maintenance. You have HOA.

Very expensive. Yeah. That's totally normal in a high end building in New York. Yeah. Completely normal. Alright. So you have opportunity cost. You have Yep. Maintenance. You have HOA.

14:51

What else do you factor in that? Transaction costs. When you buy and sell, it's a massive, that's real piece. Four percent?

What else do you factor in that? Transaction costs. When you buy and sell, it's a massive, that's real piece. Four percent?

14:58

I forget the calculation I used back then, but it's like hundreds of thousands of dollars for a unit of that's when you count both ends. Okay? And then

I forget the calculation I used back then, but it's like hundreds of thousands of dollars for a unit of that's when you count both ends. Okay? And then

15:06

furniture. This is something not to be missed. You don't get the same furniture in a rental as you get in a place you bought for a lot of money. You get nicer furniture

furniture. This is something not to be missed. You don't get the same furniture in a rental as you get in a place you bought for a lot of money. You get nicer furniture

15:16

factor that in. Need to be honest. Also renovations,

factor that in. Need to be honest. Also renovations,

15:19

people are not really renovating their rentals,

people are not really renovating their rentals,

15:22

but they're renovating their other ones. So I factored it all in. Okay? And again, you can play with the assumptions in New York. I always prefer

but they're renovating their other ones. So I factored it all in. Okay? And again, you can play with the assumptions in New York. I always prefer

15:30

to estimate high. What do you use for the future growth? Do you use three and a half percent?

to estimate high. What do you use for the future growth? Do you use three and a half percent?

15:35

And the growth. I used three, I used three percent for rental growth,

And the growth. I used three, I used three percent for rental growth,

15:40

and I used

and I used

15:42

I think a three and a half or in the ballpark of that for owning. Again, we need to factor in appreciation because there are a lot of buildings in high cost of living cities. They lose money every year, but they make it on appreciation.

I think a three and a half or in the ballpark of that for owning. Again, we need to factor in appreciation because there are a lot of buildings in high cost of living cities. They lose money every year, but they make it on appreciation.

15:55

Okay? So I factored it all in. I was like, wait a second. If I'm paying five grand over here, sample number, It would cost me eleven grand

Okay? So I factored it all in. I was like, wait a second. If I'm paying five grand over here, sample number, It would cost me eleven grand

16:03

per month to own the same basic unit with the same view, etcetera.

per month to own the same basic unit with the same view, etcetera.

16:08

I go,

I go,

16:09

I'm good. I'll take the six k per month. I'll invest it, and that's exactly what I did. And I've been doing that for, like,

I'm good. I'll take the six k per month. I'll invest it, and that's exactly what I did. And I've been doing that for, like,

16:17

close to twenty years. So that turns into a lot of money over time and you get to live in amazing places.

close to twenty years. So that turns into a lot of money over time and you get to live in amazing places.

16:24

Now that's the math part.

Now that's the math part.

16:26

But at a certain point, when my wife and I decide to buy, which one day we probably will, Do you have a time frame or, like, not a time? Do do you think that maybe in the next five years you might, or is it just whenever you Probably probably not in the next five, but

But at a certain point, when my wife and I decide to buy, which one day we probably will, Do you have a time frame or, like, not a time? Do do you think that maybe in the next five years you might, or is it just whenever you Probably probably not in the next five, but

16:40

After yeah. Probably, like, after that. That's my guess. But when we go to make that decision, my goal with anything really important in my life is that I don't want cost

After yeah. Probably, like, after that. That's my guess. But when we go to make that decision, my goal with anything really important in my life is that I don't want cost

16:50

to be the number one consideration. I don't want it to be number two or even number three. I wanna have enough money that I can go and be like, that's what I want. It's totally irrational.

to be the number one consideration. I don't want it to be number two or even number three. I wanna have enough money that I can go and be like, that's what I want. It's totally irrational.

17:00

But it's exactly what I want, and I don't really care what it costs. Is your mentality?

But it's exactly what I want, and I don't really care what it costs. Is your mentality?

17:04

Okay. So money is number three or number four. I think you said four or five on that list. So in is your mentality going into buying a home? Do you think it's gonna be, like, I would like to not lose money on this or If possible, I want this to be a store of value or something like that? No. I will lose a huge amount of money. It will be the worst financial decision I ever make. It will cost me millions. It will cost us millions. I know that.

Okay. So money is number three or number four. I think you said four or five on that list. So in is your mentality going into buying a home? Do you think it's gonna be, like, I would like to not lose money on this or If possible, I want this to be a store of value or something like that? No. I will lose a huge amount of money. It will be the worst financial decision I ever make. It will cost me millions. It will cost us millions. I know that.

17:29

It's okay. Well, but you said that money you said money's number four. So if it's number four,

It's okay. Well, but you said that money you said money's number four. So if it's number four,

17:35

I don't want it to be number one, number two, number three. It's gonna be like a distant number. Like me an example, my wedding. When my wife and I got married, I'd been saving

I don't want it to be number one, number two, number three. It's gonna be like a distant number. Like me an example, my wedding. When my wife and I got married, I'd been saving

17:43

for, like, over a decade

for, like, over a decade

17:45

well before I knew her. Because I knew, you know, I'm Indian and I wanna have an amazing wedding, and I don't want cost to be relevant at all. You should've brought that up on your first date. Like, hey. I've I've been saving for our wedding by the way. That's not weird. That's not weird at all. That's what people, often in the personal finance community watch you do pull out your Roth IRA and show me your allocation. I'm like, can you guys go on a first date for once in your life, please? Like, during dessert, you're like, what's your credit score? And by the way, can we go over our budget for our wedding?

well before I knew her. Because I knew, you know, I'm Indian and I wanna have an amazing wedding, and I don't want cost to be relevant at all. You should've brought that up on your first date. Like, hey. I've I've been saving for our wedding by the way. That's not weird. That's not weird at all. That's what people, often in the personal finance community watch you do pull out your Roth IRA and show me your allocation. I'm like, can you guys go on a first date for once in your life, please? Like, during dessert, you're like, what's your credit score? And by the way, can we go over our budget for our wedding?

18:12

So

So

18:13

that

that

18:14

that

that

18:15

was

was

18:16

an

an

18:17

example

example

18:18

where

where

18:19

I

I

18:20

knew that something inevitable was gonna happen. One day, I was gonna get married. I wanted to be married one day. And I was like, this is gonna be awesome. And I don't want cost to be relevant at all. Okay, within reason, but, like, I was happy to pay a lot. Same for a house. It's a luxury purchase. It's not an investment. It's a horrible investment.

knew that something inevitable was gonna happen. One day, I was gonna get married. I wanted to be married one day. And I was like, this is gonna be awesome. And I don't want cost to be relevant at all. Okay, within reason, but, like, I was happy to pay a lot. Same for a house. It's a luxury purchase. It's not an investment. It's a horrible investment.

18:38

It a high cost of living area. So I'm just approaching it as a pure luxury as if I was going and buying a beautiful sweater,

It a high cost of living area. So I'm just approaching it as a pure luxury as if I was going and buying a beautiful sweater,

18:45

car, whatever. I don't care. I'm gonna lose money. It's pure desire.

car, whatever. I don't care. I'm gonna lose money. It's pure desire.

18:49

You said that you wanna be able to buy cash. Will you get a mortgage, or does that depend on the rates?

You said that you wanna be able to buy cash. Will you get a mortgage, or does that depend on the rates?

18:54

Maybe.

Maybe.

18:55

Maybe. So one I've ten money rules. They're online.

Maybe. So one I've ten money rules. They're online.

18:58

And,

And,

18:59

one of the rules is

one of the rules is

19:01

be able

be able

19:03

to

to

19:04

pay in cash for any large purchases such as wedding, honeymoon, car,

pay in cash for any large purchases such as wedding, honeymoon, car,

19:11

house, Now people are always like, what the hell are you talking about? Pay for a house in cash?

house, Now people are always like, what the hell are you talking about? Pay for a house in cash?

19:16

And the origin of this is I had a mentor when I was an intern, much younger. And he told me he said, Ramit, we have a no debt policy

And the origin of this is I had a mentor when I was an intern, much younger. And he told me he said, Ramit, we have a no debt policy

19:25

in our house.

in our house.

19:27

No debt. I said, wow, in my head, I'm thinking must be nice. The guy lived in a very elite Bay Area city.

No debt. I said, wow, in my head, I'm thinking must be nice. The guy lived in a very elite Bay Area city.

19:34

As I got older and my business grew, I started to realize

As I got older and my business grew, I started to realize

19:38

That actually takes discipline

That actually takes discipline

19:40

to have a no debt policy in your house. Now we can quibble about whether debt is good or bad and sometimes it's leveraged and whatever. But just the idea that he had a philosophy, a point of view on debt, I really love that. And so I, one day, when we buy a house,

to have a no debt policy in your house. Now we can quibble about whether debt is good or bad and sometimes it's leveraged and whatever. But just the idea that he had a philosophy, a point of view on debt, I really love that. And so I, one day, when we buy a house,

19:57

I wanna make sure we have enough

I wanna make sure we have enough

20:00

somewhere in our net worth that if we wanted to, we would pay with cash Will we do it if it's a one point five percent mortgage? No. We'll take that mortgage all day.

somewhere in our net worth that if we wanted to, we would pay with cash Will we do it if it's a one point five percent mortgage? No. We'll take that mortgage all day.

20:09

But I I'm not gonna buy a house that we don't already have

But I I'm not gonna buy a house that we don't already have

20:14

the available cash for purely as a matter of discipline. And, I wanna ask you about, like, your

the available cash for purely as a matter of discipline. And, I wanna ask you about, like, your

20:22

future home, like, what what you wanted to what, like, what the attributes will be. But

future home, like, what what you wanted to what, like, what the attributes will be. But

20:28

when you are,

when you are,

20:29

does does it factor in how often you're gonna move? So for for my rules for buying a home,

does does it factor in how often you're gonna move? So for for my rules for buying a home,

20:35

the one of the rules I have is I wanna live there for twenty five years. Dude, you and I agree on so much. Basically, all of our podcasts are two bros agreeing with each other. Like, that's it. It's I love it. Okay. I totally agree.

the one of the rules I have is I wanna live there for twenty five years. Dude, you and I agree on so much. Basically, all of our podcasts are two bros agreeing with each other. Like, that's it. It's I love it. Okay. I totally agree.

20:48

When we go to buy a house, the the general suggestion I give to people is you better plan to live there for at least ten years.

When we go to buy a house, the the general suggestion I give to people is you better plan to live there for at least ten years.

20:55

I I I think the same way long term. Let me explain the math behind it because this is quite counterintuitive as well. So you we've all heard the phrase, You're throwing money away on rent. I go, how come you don't say the same thing when you go eat a sushi on Saturdays? You're throwing money away on sushi. Or how come you don't say you're paying your sushi owner's mortgage?

I I I think the same way long term. Let me explain the math behind it because this is quite counterintuitive as well. So you we've all heard the phrase, You're throwing money away on rent. I go, how come you don't say the same thing when you go eat a sushi on Saturdays? You're throwing money away on sushi. Or how come you don't say you're paying your sushi owner's mortgage?

21:14

Can we only use that real ridiculous sneer for a landlord? I don't care if a landlord makes money. As long as I'm making money, everybody can make money. It's great.

Can we only use that real ridiculous sneer for a landlord? I don't care if a landlord makes money. As long as I'm making money, everybody can make money. It's great.

21:24

In the case of buying a house and staying there and then moving in a few years, it's usually a really big financial mistake. Let me tell you why.

In the case of buying a house and staying there and then moving in a few years, it's usually a really big financial mistake. Let me tell you why.

21:32

I, I ran a quick calculation before we talk. Let's take the median house. It's like four hundred and seventeen thousand dollars. Let's even be conservative. Let's say you twenty percent down, which is pretty hard to do, but let's just say you do Do most people do twenty percent or less?

I, I ran a quick calculation before we talk. Let's take the median house. It's like four hundred and seventeen thousand dollars. Let's even be conservative. Let's say you twenty percent down, which is pretty hard to do, but let's just say you do Do most people do twenty percent or less?

21:46

I think they do less, especially now because it's so unaffordable That's a median price house. That's really expensive.

I think they do less, especially now because it's so unaffordable That's a median price house. That's really expensive.

21:52

Let's say you have seven point one percent interest. I calculated with really good credit. But that's the interest rate right now. Seven point one percent. Okay. Listen to this. This is gonna blow your mind, everybody.

Let's say you have seven point one percent interest. I calculated with really good credit. But that's the interest rate right now. Seven point one percent. Okay. Listen to this. This is gonna blow your mind, everybody.

22:04

You are paying more in interest than in principle for the first twenty years.

You are paying more in interest than in principle for the first twenty years.

22:14

Not one year, not two years for twenty years. Only in year twenty one, are you paying more towards the principal

Not one year, not two years for twenty years. Only in year twenty one, are you paying more towards the principal

22:22

then you are an interest. So in other words, for all the people who leave me hundreds of comments every single day saying, why are you throwing money away to rent? So dumb. So just have one simple answer. I don't like to throw money away on interest.

then you are an interest. So in other words, for all the people who leave me hundreds of comments every single day saying, why are you throwing money away to rent? So dumb. So just have one simple answer. I don't like to throw money away on interest.

22:35

Do you think that your opinion

Do you think that your opinion

22:37

and this is more so because I know you get comments all the time, and I'm recently in this category, and I'm reflecting on how I feel. Do you think that your opinion would change if you had two or three kids? Family definitely factors in. For sure. That in fact, I was gonna ask you how how does family factor into your decision, but it's so interesting because you're choosing to rent right now. I love that. Well, it's gonna for me, it's it's gonna factor in when she's of school age.

and this is more so because I know you get comments all the time, and I'm recently in this category, and I'm reflecting on how I feel. Do you think that your opinion would change if you had two or three kids? Family definitely factors in. For sure. That in fact, I was gonna ask you how how does family factor into your decision, but it's so interesting because you're choosing to rent right now. I love that. Well, it's gonna for me, it's it's gonna factor in when she's of school age.

23:00

She's not. I have a four month old. And so that's why I said

She's not. I have a four month old. And so that's why I said

23:05

through the and so, by the way, the lease that I got, I negotiated down a significant amount, and I got them down by signing a two year lease and,

through the and so, by the way, the lease that I got, I negotiated down a significant amount, and I got them down by signing a two year lease and,

23:14

paying six months upfront or So good.

paying six months upfront or So good.

23:17

And so, like, I think we got a it's like a thirty percent discount. That's

And so, like, I think we got a it's like a thirty percent discount. That's

23:22

Amazing. Yeah. It was a significant discount, because we we did a two and then I call them and I go, look, like, I'm the we are the perfect tenants because we are We have stable jobs. We, like, we don't party. We I've got a newborn. Like, we are the I'm the best possible tenant you could ever want. But, like, at what point did you say, by the way, have you ever heard of my first mails?

Amazing. Yeah. It was a significant discount, because we we did a two and then I call them and I go, look, like, I'm the we are the perfect tenants because we are We have stable jobs. We, like, we don't party. We I've got a newborn. Like, we are the I'm the best possible tenant you could ever want. But, like, at what point did you say, by the way, have you ever heard of my first mails?

23:45

Never. I actually don't, like, bring him that up. Okay. Have to tell you something. So my friends are always, like, after my Netflix show came out, they're like, dude. So, like, what's it like being famous? Like, you get into any restaurant you want. I was like, What? Like, what are you talking about? They're like, don't you have, like, your agents called, like, get you into what and I'm like, is this what people do? Cause If so, I need to learn. I need to learn how to name drop my first million. And so, first of all, I never named that. And second of all, I'm not famous. I I when people make fun of me and I guess, my friends, and they'll say I'm famous. I'm like, no. I'm popular amongst a handful of nerds.

Never. I actually don't, like, bring him that up. Okay. Have to tell you something. So my friends are always, like, after my Netflix show came out, they're like, dude. So, like, what's it like being famous? Like, you get into any restaurant you want. I was like, What? Like, what are you talking about? They're like, don't you have, like, your agents called, like, get you into what and I'm like, is this what people do? Cause If so, I need to learn. I need to learn how to name drop my first million. And so, first of all, I never named that. And second of all, I'm not famous. I I when people make fun of me and I guess, my friends, and they'll say I'm famous. I'm like, no. I'm popular amongst a handful of nerds.

24:16

So anyway, for me, for factoring,

So anyway, for me, for factoring,

24:18

for with children.

for with children.

24:20

I think that, like, when they're of school age,

I think that, like, when they're of school age,

24:22

and, like, school, if we decide to go to public school, school district matters,

and, like, school, if we decide to go to public school, school district matters,

24:27

things like that. And in which case, buying will be a no brainer. But my and I'll talk about this in a second, but my whole thing with

things like that. And in which case, buying will be a no brainer. But my and I'll talk about this in a second, but my whole thing with

24:33

the hardest part about me deciding when to buy is is

the hardest part about me deciding when to buy is is

24:38

not the rules. It's deciding what I want. So, the hardest part is, like, seeing, like, what features of a house do I actually care about? And so what I love to do is when I, I go and visit my family, in different parts of the country all the time, I purposely actually rent a variety of Airbnbs. So, like, sometimes I'll splurge and I'll rent a ten thousand square foot place. Other times, I'll rent a really small apartment.

not the rules. It's deciding what I want. So, the hardest part is, like, seeing, like, what features of a house do I actually care about? And so what I love to do is when I, I go and visit my family, in different parts of the country all the time, I purposely actually rent a variety of Airbnbs. So, like, sometimes I'll splurge and I'll rent a ten thousand square foot place. Other times, I'll rent a really small apartment.

25:03

Other times, I'll rent a place in the city sometimes in the suburb. And so I get to live for two weeks or whatever just to see what is this lifestyle like and do I like it? I'll give you an example. I love it. I used to wanna buy a Brownstone in Brooklyn. I thought they looked so cool. I rented one for a month, and it was a lot of money and I splurged. And what I found is they stink. Like, the even the like, for what my preference is, an old or a a renovated Brown stone is still an old building. That things break all the time. And, like, you hear the and so, like, I got to I got to, like, test that out. You know what I'm saying? So I do that all the time.

Other times, I'll rent a place in the city sometimes in the suburb. And so I get to live for two weeks or whatever just to see what is this lifestyle like and do I like it? I'll give you an example. I love it. I used to wanna buy a Brownstone in Brooklyn. I thought they looked so cool. I rented one for a month, and it was a lot of money and I splurged. And what I found is they stink. Like, the even the like, for what my preference is, an old or a a renovated Brown stone is still an old building. That things break all the time. And, like, you hear the and so, like, I got to I got to, like, test that out. You know what I'm saying? So I do that all the time.

25:39

When you're when you're thinking about buying a place, what attributes do you want it to have?

When you're when you're thinking about buying a place, what attributes do you want it to have?

25:44

I have a very, very specific and growing list because, like I said, it's a luxury So a luxury means you get exactly what you want. It's not about price. It's about getting exactly what you want. How long's your list? That's pages as in page. I'll just bullet points.

I have a very, very specific and growing list because, like I said, it's a luxury So a luxury means you get exactly what you want. It's not about price. It's about getting exactly what you want. How long's your list? That's pages as in page. I'll just bullet points.

26:00

Yeah. Just bullet points. Like, for example. Yeah. So we rented an Airbnb. That's amazing, right, that we can test Amazing. Amazing. And honestly, like, a huge gift to be able to be, like, oh, I can live in a different house that I would never have access to. And living there, even for a week, you see things you didn't. So we rented an Airbnb one time,

Yeah. Just bullet points. Like, for example. Yeah. So we rented an Airbnb. That's amazing, right, that we can test Amazing. Amazing. And honestly, like, a huge gift to be able to be, like, oh, I can live in a different house that I would never have access to. And living there, even for a week, you see things you didn't. So we rented an Airbnb one time,

26:20

and the owner was a chef.

and the owner was a chef.

26:22

Oh, wow.

Oh, wow.

26:23

Well, it made a lot of sense because the kitchen

Well, it made a lot of sense because the kitchen

26:27

was, like, extremely efficient Like, I found I I'm not in the kitchen a lot, but I found myself just enjoying being there. And it's because,

was, like, extremely efficient Like, I found I I'm not in the kitchen a lot, but I found myself just enjoying being there. And it's because,

26:35

I later learned there's something called, like, the kitchen triangle or something. And it's like a highly efficient way of setting your kitchen up. And then I connected the dots. Oh, this is a chef so they knew what they were doing. Like, two dishwashers,

I later learned there's something called, like, the kitchen triangle or something. And it's like a highly efficient way of setting your kitchen up. And then I connected the dots. Oh, this is a chef so they knew what they were doing. Like, two dishwashers,

26:46

things like that.

things like that.

26:47

Exactly. Like, it's all within reach. Yeah. So you're not wandering around. So good.

Exactly. Like, it's all within reach. Yeah. So you're not wandering around. So good.

26:52

I also you know, I love hotels. Yeah. Right? So every time I go to hotels, which I consider

I also you know, I love hotels. Yeah. Right? So every time I go to hotels, which I consider

26:57

the best hotels have the absolute best designers, the best hospitality,

the best hotels have the absolute best designers, the best hospitality,

27:01

the best

the best

27:02

thinking

thinking

27:03

about what's gonna make an amazing experience. So I go, for example, the best,

about what's gonna make an amazing experience. So I go, for example, the best,

27:07

bathroom in the world that I've ever encountered is at Aman Kyoto.

bathroom in the world that I've ever encountered is at Aman Kyoto.

27:13

It's amazing. So what makes it amazing? Okay. First of all, so they have a beautiful mirror.

It's amazing. So what makes it amazing? Okay. First of all, so they have a beautiful mirror.

27:20

The the lighting looks incredible,

The the lighting looks incredible,

27:21

the set up huge counter space, beautiful Hinoki would right behind you, toilet in a separate room, the toto toilet alone, I think, is twenty thousand dollars. And it looks like a spaceship. It's incredible. Our friend Noah has one of those. Oh, really? That's cool. I think I think so. It's like a really expensive, like, smart toilet. Right?

the set up huge counter space, beautiful Hinoki would right behind you, toilet in a separate room, the toto toilet alone, I think, is twenty thousand dollars. And it looks like a spaceship. It's incredible. Our friend Noah has one of those. Oh, really? That's cool. I think I think so. It's like a really expensive, like, smart toilet. Right?

27:41

Wait. Yeah. Yeah. Yeah. Hold on. Are you sure toto has, like, twenty models. Well, I don't know which I I know that it was,

Wait. Yeah. Yeah. Yeah. Hold on. Are you sure toto has, like, twenty models. Well, I don't know which I I know that it was,

27:47

like, north of ten thousand dollars, and it has, like, a Whoa. And it has, like, a remote control.

like, north of ten thousand dollars, and it has, like, a Whoa. And it has, like, a remote control.

27:52

Noah. Okay. That that's amazing. I did not know that. Wouldn't it be funny if we got Noah on right now? We're like, no. Join this link right now. And then we're like, no. Show us your toilet. And he's like, show you. I'm sitting on it right now. No. It's a fancy and he

Noah. Okay. That that's amazing. I did not know that. Wouldn't it be funny if we got Noah on right now? We're like, no. Join this link right now. And then we're like, no. Show us your toilet. And he's like, show you. I'm sitting on it right now. No. It's a fancy and he

28:05

as a gift, he bought Neville one as well, a really fancy toilet. Wow. And so Neville had they have, like, remote controls, enough that, like, Neville's

as a gift, he bought Neville one as well, a really fancy toilet. Wow. And so Neville had they have, like, remote controls, enough that, like, Neville's

28:12

family member came and visited, and they were really intimidated because they were like, I don't know how to work this toilet.

family member came and visited, and they were really intimidated because they were like, I don't know how to work this toilet.

28:18

It is a little

It is a little

28:20

nerve wracking for sure. So you want a fancy bathroom. You want an efficient kitchen. A couple other things,

nerve wracking for sure. So you want a fancy bathroom. You want an efficient kitchen. A couple other things,

28:26

bedrooms, small. Not interested in a huge bedroom. I don't want a couch in the bedroom. It's so irrelevant. It's so dumb. Dom. Small.

bedrooms, small. Not interested in a huge bedroom. I don't want a couch in the bedroom. It's so irrelevant. It's so dumb. Dom. Small.

28:34

I want a place to put packages because we get a lot of packages, and I don't like seeing cardboard everywhere. In the south, they call that a mud room. You want a mud room? A mud.

I want a place to put packages because we get a lot of packages, and I don't like seeing cardboard everywhere. In the south, they call that a mud room. You want a mud room? A mud.

28:44

That's the con. Great.

That's the con. Great.

28:46

I like that. We want well, I I my vision is multiple pavilions.

I like that. We want well, I I my vision is multiple pavilions.

28:52

So three small houses, or structures,

So three small houses, or structures,

28:56

one would be an office physically separate. One would be a guest house, physically separate. And what is a house? I don't like a house that's huge. I don't like, anything I don't like anything above three thousand square feet. I find it quite cavernous.

one would be an office physically separate. One would be a guest house, physically separate. And what is a house? I don't like a house that's huge. I don't like, anything I don't like anything above three thousand square feet. I find it quite cavernous.

29:12

And so human sized,

And so human sized,

29:15

my parents taught me this really interesting thing. You know, we grew up. We didn't have a lot of money. We have a pretty big family. And I was asking my dad, you know, as I got older, like, how did you decide to buy a house? How'd you calculated all this stuff?

my parents taught me this really interesting thing. You know, we grew up. We didn't have a lot of money. We have a pretty big family. And I was asking my dad, you know, as I got older, like, how did you decide to buy a house? How'd you calculated all this stuff?

29:25

He's like, let me give you a piece of advice. He goes, don't get too big of a house. I was like, what how come you say that? He goes, if you have too big of a house, kids will go into different areas and they won't congregate. You want them to congregate, because that's how you build a family. I was like,

He's like, let me give you a piece of advice. He goes, don't get too big of a house. I was like, what how come you say that? He goes, if you have too big of a house, kids will go into different areas and they won't congregate. You want them to congregate, because that's how you build a family. I was like,

29:41

whoa. Dude, I, interviewed this guy, on Tuesday or Wednesday or yesterday or something like and he has a twenty five thousand square foot home. And he was telling me, like, I was like, what's the expenses for that? And he was telling me all the all the answers and was like, how much time do you spend a week, like, managing vendors? He goes, like, fifth he's, like, fifteen or twenty hours a week. I'm spending. He he's retired. He's like, I kinda like doing it because I don't have anything to do. Okay. Okay. And he's like, at the time, I was divorced and remarried a woman who had a bunch of kids and I had a bunch of kids And it was cool to have and then they grew up and they had kids. And so I was like, this is our compound that everyone hangs out. He goes, but now I'm trying to down side too much work. I can't handle it. Yeah. And he's like, I'm done. I'm just he's like, I can't change the light bulbs. Like, they're just, like, because they're too high. I'm not gonna get on a ladder. He's like, just way too much work. And so, because I was thinking about size. I'm trying to decide how big I want. I I think I actually want, like, fifty five hundred, square feet. Fifty five hundred square feet? Yeah.

whoa. Dude, I, interviewed this guy, on Tuesday or Wednesday or yesterday or something like and he has a twenty five thousand square foot home. And he was telling me, like, I was like, what's the expenses for that? And he was telling me all the all the answers and was like, how much time do you spend a week, like, managing vendors? He goes, like, fifth he's, like, fifteen or twenty hours a week. I'm spending. He he's retired. He's like, I kinda like doing it because I don't have anything to do. Okay. Okay. And he's like, at the time, I was divorced and remarried a woman who had a bunch of kids and I had a bunch of kids And it was cool to have and then they grew up and they had kids. And so I was like, this is our compound that everyone hangs out. He goes, but now I'm trying to down side too much work. I can't handle it. Yeah. And he's like, I'm done. I'm just he's like, I can't change the light bulbs. Like, they're just, like, because they're too high. I'm not gonna get on a ladder. He's like, just way too much work. And so, because I was thinking about size. I'm trying to decide how big I want. I I think I actually want, like, fifty five hundred, square feet. Fifty five hundred square feet? Yeah.

30:35

And the reason why I like that is because my in laws can come and stay there and basically live and have their own room And they could be with my family, and it could be and it's and it doesn't feel like it's a burden that they're just living with that, and and they could work from the house, and I and by the way, working from homes in ordeal now,

And the reason why I like that is because my in laws can come and stay there and basically live and have their own room And they could be with my family, and it could be and it's and it doesn't feel like it's a burden that they're just living with that, and and they could work from the house, and I and by the way, working from homes in ordeal now,

30:53

where, like, and plus I record for a living, so I would need a dedicated room for that. My wife needs, would like a dedicated room And I want space for in laws, and I have out of town family. I want them to be able to make themselves at home and not feel like they're a burden on me. And so that's kinda how I decided on my footage is about fifty five to six thousand. Okay. I I'll tell you what. I I like that. It all kinda makes sense, you know. I need this, I need that, and then expands.

where, like, and plus I record for a living, so I would need a dedicated room for that. My wife needs, would like a dedicated room And I want space for in laws, and I have out of town family. I want them to be able to make themselves at home and not feel like they're a burden on me. And so that's kinda how I decided on my footage is about fifty five to six thousand. Okay. I I'll tell you what. I I like that. It all kinda makes sense, you know. I need this, I need that, and then expands.

31:15

I think that also brings me to the list. The it's not just about the house. So I went one level up because when when

I think that also brings me to the list. The it's not just about the house. So I went one level up because when when

31:23

My wife and I moved to LA.

My wife and I moved to LA.

31:26

One day I was like, let's go let's go take a driving tour of the most expensive houses

One day I was like, let's go let's go take a driving tour of the most expensive houses

31:32

in the city. So I found, like, all the expensive neighborhoods, and then we just drove around Bell Air, all these places. Most of them have huge

in the city. So I found, like, all the expensive neighborhoods, and then we just drove around Bell Air, all these places. Most of them have huge

31:39

gates but you can kinda see through. And And you're talking, like, a hundred million dollar homes, fifty to a hundred million. Yeah. Yeah. Exactly. So I was like, write down that address and we would look it up later. And sometimes there's photos. It's pretty cool just to see. And,

gates but you can kinda see through. And And you're talking, like, a hundred million dollar homes, fifty to a hundred million. Yeah. Yeah. Exactly. So I was like, write down that address and we would look it up later. And sometimes there's photos. It's pretty cool just to see. And,

31:53

as I was going through this, I, you know, while you're driving there for a minute, especially as an entrepreneur, you're like, I could live here. Remit Safety, Bill Air. You know, like, you're, like, kind of falling into the vision. And then I got home, and I was, like, what the hell am I talking about? Like, I have a very small list of things that are absolutely important to me. And guess what's number one on that list? Walkability? Same.

as I was going through this, I, you know, while you're driving there for a minute, especially as an entrepreneur, you're like, I could live here. Remit Safety, Bill Air. You know, like, you're, like, kind of falling into the vision. And then I got home, and I was, like, what the hell am I talking about? Like, I have a very small list of things that are absolutely important to me. And guess what's number one on that list? Walkability? Same.

32:15

Walkability. So how am I gonna have a Bellaire house where there's literally no sidewalks

Walkability. So how am I gonna have a Bellaire house where there's literally no sidewalks

32:21

and then also reconcile that with walkability? And that's why I think it's so important for us as you as you get to know yourself to just create a simple list of values because otherwise, even I will get enchanted by some cool thing I see.

and then also reconcile that with walkability? And that's why I think it's so important for us as you as you get to know yourself to just create a simple list of values because otherwise, even I will get enchanted by some cool thing I see.

32:34

And then I buy this thing that I don't even want, or it could be a car, it could be a shirt, it could be whatever. So just having those values to remind you, what is actually

And then I buy this thing that I don't even want, or it could be a car, it could be a shirt, it could be whatever. So just having those values to remind you, what is actually

32:42

important place that I rented through the the second biggest reason why I did it was it's across the street from a weekly farmer's market. I love that. So simple. And I just, like, I just wanna eat, like, fresh vegetables and fresh meat, and that was, like, an ordeal was that it's just across the street from a a farmer's market. I love that. And does this when when you're this methodical

important place that I rented through the the second biggest reason why I did it was it's across the street from a weekly farmer's market. I love that. So simple. And I just, like, I just wanna eat, like, fresh vegetables and fresh meat, and that was, like, an ordeal was that it's just across the street from a a farmer's market. I love that. And does this when when you're this methodical

33:05

about buying a home, are you this methodical about all the other things you like to purchase on a or weekly basis?

about buying a home, are you this methodical about all the other things you like to purchase on a or weekly basis?

33:11

Well, I think you should be this methodical for the largest purchase of your life. That's what blows my mind. Is people just literally buy a house and they spent more time researching

Well, I think you should be this methodical for the largest purchase of your life. That's what blows my mind. Is people just literally buy a house and they spent more time researching

33:21

their local steakhouse.

their local steakhouse.

33:23

Like, what? What?

Like, what? What?

33:25

So, no, I'm not as methodical. No. I don't spend years deciding, you know, what brand of chips to buy, but I do I do like a couple of rules that kind of make life simple. Like you, I don't wanna have to be consumed with stuff.

So, no, I'm not as methodical. No. I don't spend years deciding, you know, what brand of chips to buy, but I do I do like a couple of rules that kind of make life simple. Like you, I don't wanna have to be consumed with stuff.

33:38

I find that just like that older guy you mentioned, we buy stuff with good intentions. Right? It's like I worked hard, the American dream. I'm gonna buy a car, a house, etcetera. And then suddenly we blink our eyes and wake up one day, and it's We spend fifty percent of our time fixing stuff and repairing stuff and thinking about stuff. I don't want stuff. I find that sometimes when people buy stuff

I find that just like that older guy you mentioned, we buy stuff with good intentions. Right? It's like I worked hard, the American dream. I'm gonna buy a car, a house, etcetera. And then suddenly we blink our eyes and wake up one day, and it's We spend fifty percent of our time fixing stuff and repairing stuff and thinking about stuff. I don't want stuff. I find that sometimes when people buy stuff

33:59

their world shrinks.

their world shrinks.

34:01

It's like, oh, I gotta work on this,

It's like, oh, I gotta work on this,

34:04

the roof thing outside. You could see how little I know about houses. That's the only example. I'm like, the roof and yet I wanna expand.

the roof thing outside. You could see how little I know about houses. That's the only example. I'm like, the roof and yet I wanna expand.

34:11

I wanna be, like, talking to friends,

I wanna be, like, talking to friends,

34:14

traveling, trying new foods,

traveling, trying new foods,

34:16

doing my business. I don't wanna be focused on a light bulb that's not of interest to me. So tell me what your opinion on this is. So I'm actually methodical

doing my business. I don't wanna be focused on a light bulb that's not of interest to me. So tell me what your opinion on this is. So I'm actually methodical

34:24

about,

about,

34:26

acquiring just things on a daily basis. Like, what? So, like, I don't have an Amazon Prime membership.

acquiring just things on a daily basis. Like, what? So, like, I don't have an Amazon Prime membership.

34:32

I just found myself buying, like, five dollar extension cords or, like, a a USB thing that I don't that I don't need, like, because because a, I, I don't want, like, all the packaging coming to my home, like, I think it's ridiculous,

I just found myself buying, like, five dollar extension cords or, like, a a USB thing that I don't that I don't need, like, because because a, I, I don't want, like, all the packaging coming to my home, like, I think it's ridiculous,

34:46

just that the sometimes I have to spend more money, and it's not the money, but it's just the energy of just, like, the actual energy in terms of what it's doing to the environment, but also, like, my mental space of, like, I have to spend money to get someone to come over to get rid of all the boxes because it doesn't fit my trash can.

just that the sometimes I have to spend more money, and it's not the money, but it's just the energy of just, like, the actual energy in terms of what it's doing to the environment, but also, like, my mental space of, like, I have to spend money to get someone to come over to get rid of all the boxes because it doesn't fit my trash can.

35:02

But, b, it takes it takes so much clutter. And so

But, b, it takes it takes so much clutter. And so

35:06

I've actually created a handful of rules when it comes to just buying things on a daily basis. Tell me. Tell me. Yeah. So the first one is when possible, I try to buy for life. And so that could mean a fancy leather jacket. So, like, let's say I want a leather jacket, I'll spend more money than,

I've actually created a handful of rules when it comes to just buying things on a daily basis. Tell me. Tell me. Yeah. So the first one is when possible, I try to buy for life. And so that could mean a fancy leather jacket. So, like, let's say I want a leather jacket, I'll spend more money than,

35:21

than I then I'll I'll buy the nicer thing in hopes that it can last for thirty or forty years. And it and, like, it couldn't be classically like I said, the classic style or it could patina nicely, things that can last for a long time. I do that with cars as well. I like to buy something that I think can last for a long time because I don't want

than I then I'll I'll buy the nicer thing in hopes that it can last for thirty or forty years. And it and, like, it couldn't be classically like I said, the classic style or it could patina nicely, things that can last for a long time. I do that with cars as well. I like to buy something that I think can last for a long time because I don't want

35:37

it's it's a little bit of cost, like, just transaction cost, but it's, like, financial cost, but it's more so the mental cost of just, like, having too much stuff. The other thing that I do is I actually think that recycling is nonsense. I think that most of the recycling in America just gets thrown into the garbage. And so I prefer to just reduce reuse So I just, like, the amount of energy that an Amazon truck takes to get something to my house that it got from China overseas with the, see, the huge ship

it's it's a little bit of cost, like, just transaction cost, but it's, like, financial cost, but it's more so the mental cost of just, like, having too much stuff. The other thing that I do is I actually think that recycling is nonsense. I think that most of the recycling in America just gets thrown into the garbage. And so I prefer to just reduce reuse So I just, like, the amount of energy that an Amazon truck takes to get something to my house that it got from China overseas with the, see, the huge ship

36:02

and, like, all the energy that goes into that, I find that to be just it hurts my heart of, like, how much waste it is just for me to buy this, like, silly USB thing that I could have just gotten at Target without all the packaging. Do you know what I mean? And so I I prefer just to reduce and reuse.

and, like, all the energy that goes into that, I find that to be just it hurts my heart of, like, how much waste it is just for me to buy this, like, silly USB thing that I could have just gotten at Target without all the packaging. Do you know what I mean? And so I I prefer just to reduce and reuse.

36:16

And then finally, I try to be super intentional of, like, I bought a a weighted vest the other day. Because I like to wear a weighted vest when I take the baby for a walk. It's actually a fun way to, like, get a little exercise. And so I try to be intentional of just being like, alright. Which type do I want? How much weight do I think I want for this weighted vest when in the past, I've just, like, bought I've bought three of them, and I'll be like, oh, I'll just see whatever's cool. Like, they're only it's only twenty five dollars. And so I just try to be a little bit more intentional about intention about what I'm going to required to make sure that that's the one I really, really want because I don't want my home full of clutter because it makes my brain cluttered.

And then finally, I try to be super intentional of, like, I bought a a weighted vest the other day. Because I like to wear a weighted vest when I take the baby for a walk. It's actually a fun way to, like, get a little exercise. And so I try to be intentional of just being like, alright. Which type do I want? How much weight do I think I want for this weighted vest when in the past, I've just, like, bought I've bought three of them, and I'll be like, oh, I'll just see whatever's cool. Like, they're only it's only twenty five dollars. And so I just try to be a little bit more intentional about intention about what I'm going to required to make sure that that's the one I really, really want because I don't want my home full of clutter because it makes my brain cluttered.

36:52

Yeah. I totally agree. Wow.

Yeah. I totally agree. Wow.

36:54

Amazing. I love those real I love how intentional you are that you just have them.

Amazing. I love those real I love how intentional you are that you just have them.

36:59

I have to say that,

I have to say that,

37:01

I think we kinda grew up fairly similarly,

I think we kinda grew up fairly similarly,

37:04

like, socio economic,

like, socio economic,

37:06

like, similarly. My my mother was a teacher, and my father was a small business owner, and he didn't Yeah. He did okay, but that was when I was in high school.

like, similarly. My my mother was a teacher, and my father was a small business owner, and he didn't Yeah. He did okay, but that was when I was in high school.

37:14

Yeah. Okay. So,

Yeah. Okay. So,

37:16

it's so interesting that often you know, on my podcast, I speak to these couples about money. And sometimes there are trends that emerge, from different types of

it's so interesting that often you know, on my podcast, I speak to these couples about money. And sometimes there are trends that emerge, from different types of

37:25

couples.

couples.

37:27

So for example, one insight that is quite obvious if you ever listen is,

So for example, one insight that is quite obvious if you ever listen is,

37:33

parents who have credit card debt

parents who have credit card debt

37:35

can never say no to their kids.

can never say no to their kids.

37:38

One hundred percent of the time, it they have an inability to say no to themselves, inability to say no to their kids. It's classic. Another one you'll find is that,

One hundred percent of the time, it they have an inability to say no to themselves, inability to say no to their kids. It's classic. Another one you'll find is that,

37:47

people who have credit card debt, sometimes I'll be like, hey, pick up your computer and take me over to your closet.

people who have credit card debt, sometimes I'll be like, hey, pick up your computer and take me over to your closet.

37:52

And they'll show me their closet. And, wow, is that intimate? Well, you had a lady on your show that, like, was kinda I don't know if she was broke, but she she was in a money crunch, and she had tens or hundreds of thousands of dollars of, like, purses and things like that. Yeah. But the but the interestingly she had a lot of money on the Netflix show, Natalie, but in

And they'll show me their closet. And, wow, is that intimate? Well, you had a lady on your show that, like, was kinda I don't know if she was broke, but she she was in a money crunch, and she had tens or hundreds of thousands of dollars of, like, purses and things like that. Yeah. But the but the interestingly she had a lot of money on the Netflix show, Natalie, but in

38:10

in the couples that will often sometimes they'll ask them to show me their closet.

in the couples that will often sometimes they'll ask them to show me their closet.

38:14

So they have financial problems. They're overspending. And I take them in the closet and they and I And usually, they're kind of withholding. They're not really opening up. And so I say, show me your closet.

So they have financial problems. They're overspending. And I take them in the closet and they and I And usually, they're kind of withholding. They're not really opening up. And so I say, show me your closet.

38:24

They love it. They open up because for many people, their closet is their identity. And I don't mind, like, I love my clothes, and they start telling it. And what you see in the closet is often chaos. It's just tons and tons and tons of stuff. And I'll say,

They love it. They open up because for many people, their closet is their identity. And I don't mind, like, I love my clothes, and they start telling it. And what you see in the closet is often chaos. It's just tons and tons and tons of stuff. And I'll say,

38:38

Hey.

Hey.

38:40

If you were given the option to buy one a hundred fifty dollar shirt or ten fifteen dollar shirts,

If you were given the option to buy one a hundred fifty dollar shirt or ten fifteen dollar shirts,

38:48

What would you take? Okay. Before I tell you what they say, Sam, what would you say? Less quantity, any day of the week.

What would you take? Okay. Before I tell you what they say, Sam, what would you say? Less quantity, any day of the week.

38:54

Exactly.

Exactly.

38:55

And they never say that. They say I want more. It provides me memories. It shows me that I can get it, etcetera. So what what I see is that class money

And they never say that. They say I want more. It provides me memories. It shows me that I can get it, etcetera. So what what I see is that class money

39:05

socioeconomic

socioeconomic

39:06

status, they all intersect, and what you're talking about is so interesting because as you have made more money, and you've kind of met people who have a lot of money, you also realize that when you go into their houses, there's a lot less stuff in there. And it is really fascinating and extremely taboo to talk about in our culture about how what you see in someone's house actually tells you a lot about who they are, their identity. It is so revealed. Yeah. And it creates huge amounts of headache. Is it this isn't just a financial thing. This is a, like,

status, they all intersect, and what you're talking about is so interesting because as you have made more money, and you've kind of met people who have a lot of money, you also realize that when you go into their houses, there's a lot less stuff in there. And it is really fascinating and extremely taboo to talk about in our culture about how what you see in someone's house actually tells you a lot about who they are, their identity. It is so revealed. Yeah. And it creates huge amounts of headache. Is it this isn't just a financial thing. This is a, like,

39:36

I think that, like, usually the desk where I work I need it to be clean.

I think that, like, usually the desk where I work I need it to be clean.

39:41

I think you said something you said something like,

I think you said something you said something like,

39:44

you're like, I love beauty. And if I surround myself in my home or my office with beauty, I feel in inspired and I feel more productive. I don't need beauty. I'm not inspired by, like, particular paintings and things like that, but I need it to be clean. Needed to be clutter free. So the desktop on my computer, it all is always empty, and it's just white space. And I like that.

you're like, I love beauty. And if I surround myself in my home or my office with beauty, I feel in inspired and I feel more productive. I don't need beauty. I'm not inspired by, like, particular paintings and things like that, but I need it to be clean. Needed to be clutter free. So the desktop on my computer, it all is always empty, and it's just white space. And I like that.

40:04

You know, there's this quote,

You know, there's this quote,

40:06

luxury is that which can be repaired.

luxury is that which can be repaired.

40:09

And it strikes me when you talk about you know, reduce and reuse.

And it strikes me when you talk about you know, reduce and reuse.

40:14

Same exact thing. One one example I shared that

Same exact thing. One one example I shared that

40:18

people

people

40:19

wet berserk over. They loved it. Was I have these shoes,

wet berserk over. They loved it. Was I have these shoes,

40:23

tennis shoes, and the company that I bought them from, they're expensive, and they do free repairs.

tennis shoes, and the company that I bought them from, they're expensive, and they do free repairs.

40:29

What's the name of the company? That's pretty cool. It's Bruno Cucinelli.

What's the name of the company? That's pretty cool. It's Bruno Cucinelli.

40:33

It's a high end Italian brand. And basically anything

It's a high end Italian brand. And basically anything

40:37

at at at these, like, high end brands if it ever

at at at these, like, high end brands if it ever

40:40

breaks or gets freight or anything, you take it in, they'll fix it for you. No questions asked. There's no cost, but it's very expensive on the front. How much are shoes there? I I I I know the brand, but I've never looked at their shoes.

breaks or gets freight or anything, you take it in, they'll fix it for you. No questions asked. There's no cost, but it's very expensive on the front. How much are shoes there? I I I I know the brand, but I've never looked at their shoes.

40:50

Well, I think those tennis shoes are like seven hundred bucks. It's a lot. But yeah. But, you know, it's not really this service, they're doing it as a courtesy to me. Really, they want you to bring in your eleven thousand dollar coat Got it. Which you've had for twenty five years, and they'll send it back to Italy where only they know how to perfectly repair it, and then they'll ship it back. That's awesome. Which yeah. It's amazing. Right? So I posted this and I showed my shoes. I wore some of these shoes on the show,

Well, I think those tennis shoes are like seven hundred bucks. It's a lot. But yeah. But, you know, it's not really this service, they're doing it as a courtesy to me. Really, they want you to bring in your eleven thousand dollar coat Got it. Which you've had for twenty five years, and they'll send it back to Italy where only they know how to perfectly repair it, and then they'll ship it back. That's awesome. Which yeah. It's amazing. Right? So I posted this and I showed my shoes. I wore some of these shoes on the show,

41:17

and I really like to you'll see me in sometimes the same outfits a lot because I wanna wear my stuff. I buy it. I spend on it, and then I wanna wear it. I don't wanna just throw it up. So I took these shoes and I took them to the store and they were like, yeah, no problem. And it took months.

and I really like to you'll see me in sometimes the same outfits a lot because I wanna wear my stuff. I buy it. I spend on it, and then I wanna wear it. I don't wanna just throw it up. So I took these shoes and I took them to the store and they were like, yeah, no problem. And it took months.

41:33

So the other thing about buying nice stuff is that you're often not gonna get the speed that you would get if you ordered from Amazon Prime or something else. Like, go to H and M, you're you're buying it right there on the spot. You're tossing it, etcetera.

So the other thing about buying nice stuff is that you're often not gonna get the speed that you would get if you ordered from Amazon Prime or something else. Like, go to H and M, you're you're buying it right there on the spot. You're tossing it, etcetera.

41:47

But, or another fast fashion brand, I should say. But for this, it's like months away. Anyway, people loved it. They love the idea that, oh my god, free repairs, free repairs, where do I get stuff repaired for free? What they don't love as much is spending on quality in the first place. Mhmm. Right? It's not about the free repairs. Like, I can afford to get shoes repaired so can you. But I think I like your mentality of, like, I'm gonna be selective about what I buy and not just by quantity, but really think about what's meaningful to me. I think that's really cool. Yeah. It's think it's exhausting. I remember,

But, or another fast fashion brand, I should say. But for this, it's like months away. Anyway, people loved it. They love the idea that, oh my god, free repairs, free repairs, where do I get stuff repaired for free? What they don't love as much is spending on quality in the first place. Mhmm. Right? It's not about the free repairs. Like, I can afford to get shoes repaired so can you. But I think I like your mentality of, like, I'm gonna be selective about what I buy and not just by quantity, but really think about what's meaningful to me. I think that's really cool. Yeah. It's think it's exhausting. I remember,

42:19

as we're preparing to move, and I'm thinking, like, alright. So we're gonna spend money to ship this. And I'm, like, but I don't even want this. Like, I don't even wanna why why am I I don't even why do I wanna ship this thing that I don't even want? Like, it's kind of ridiculous.

as we're preparing to move, and I'm thinking, like, alright. So we're gonna spend money to ship this. And I'm, like, but I don't even want this. Like, I don't even wanna why why am I I don't even why do I wanna ship this thing that I don't even want? Like, it's kind of ridiculous.

42:33

Yeah. It's I I like how you kinda stop it before you even get it in the door. Like, you're like, I'm not even gonna get Amazon Prime, but I also think that once you have it in the door, if something's in your house, You can also, like, I do a quarterly

Yeah. It's I I like how you kinda stop it before you even get it in the door. Like, you're like, I'm not even gonna get Amazon Prime, but I also think that once you have it in the door, if something's in your house, You can also, like, I do a quarterly

42:45

closet cleanse. That's in part because my wife is a personal stylist. So she's taught me how to always cleanse and,

closet cleanse. That's in part because my wife is a personal stylist. So she's taught me how to always cleanse and,

42:53

it's just nice to get things out. And it frees up mental space, you know, when you open your closet or when you open your office or even your kitchen every day,

it's just nice to get things out. And it frees up mental space, you know, when you open your closet or when you open your office or even your kitchen every day,

43:01

I wanna feel good. I wanna open the fridge and things are in order.

I wanna feel good. I wanna open the fridge and things are in order.

43:05

I don't wanna feel chaos, like, by seven thirty in the morning. It's really challenging though, by the way, to throw away stuff. It's like a it it I used to make I I read that. I I would make fun of, like, the hoarder TV show. I'm like, how are these people so ridiculous?

I don't wanna feel chaos, like, by seven thirty in the morning. It's really challenging though, by the way, to throw away stuff. It's like a it it I used to make I I read that. I I would make fun of, like, the hoarder TV show. I'm like, how are these people so ridiculous?

43:19

And then when you go through that process of actually cleansing out and and cleaning, it

And then when you go through that process of actually cleansing out and and cleaning, it

43:24

it I don't know if it impacts you. It impacts me. I get emotional. I'm like, oh, but I've owned this thing for fifteen years, even though I've never used it, it's actually it is

it I don't know if it impacts you. It impacts me. I get emotional. I'm like, oh, but I've owned this thing for fifteen years, even though I've never used it, it's actually it is

43:33

it is hard. And so I don't wanna get into that rut

it is hard. And so I don't wanna get into that rut

43:36

Yeah. I agree. I mean, I I don't have an emotional thing, but I do have a problem with piles.

Yeah. I agree. I mean, I I don't have an emotional thing, but I do have a problem with piles.

43:41

Like, I get stuff and I just put in a pile and then I, like, never get to the pile. Sometimes for years.

Like, I get stuff and I just put in a pile and then I, like, never get to the pile. Sometimes for years.

43:48

And it's just like, why am I doing this? Like, that's the one thing I really need to improve on as it relates to cleanliness because I'm like, These piles do not look good. They don't feel good either. So for the listener, the takeaways in all this. So we talked about running the math. You get criticized online all the time. And I think it's nonsense because all you're saying is

And it's just like, why am I doing this? Like, that's the one thing I really need to improve on as it relates to cleanliness because I'm like, These piles do not look good. They don't feel good either. So for the listener, the takeaways in all this. So we talked about running the math. You get criticized online all the time. And I think it's nonsense because all you're saying is

44:08

run the math. That's all you're saying And don't do so and even if it is unprofitable, do it anyway. But don't kid yourself and say that it that it's a good investment.

run the math. That's all you're saying And don't do so and even if it is unprofitable, do it anyway. But don't kid yourself and say that it that it's a good investment.

44:16

Yes. You can total if you like, I have a friend, they lived,

Yes. You can total if you like, I have a friend, they lived,

44:19

they they moved to New Jersey, New Jersey notoriously high taxes, and they were like, Hey, Ramit. We ran the numbers. It makes no sense. And we're buying anyway because of schooling and because of location to work. I go fantastic. I gave him a round of applause. Good job. It doesn't matter to me if you buy a rent. It only matters that you're actually calculating everything.

they they moved to New Jersey, New Jersey notoriously high taxes, and they were like, Hey, Ramit. We ran the numbers. It makes no sense. And we're buying anyway because of schooling and because of location to work. I go fantastic. I gave him a round of applause. Good job. It doesn't matter to me if you buy a rent. It only matters that you're actually calculating everything.

44:40

Math is one part of it. You need to know your numbers. But also there are other things. Family,

Math is one part of it. You need to know your numbers. But also there are other things. Family,

44:46

you know, just pure desire,

you know, just pure desire,

44:48

anything you want, but you gotta calculate it all. You cannot simply say,

anything you want, but you gotta calculate it all. You cannot simply say,

44:52

like, I want like, it's hilarious to me that so many twenty four year olds on Twitter are, like, my number one goal with money is financial freedom. And then they spend six hundred and thirty percent of their net worth on a thirty year mortgage. It literally makes no sense. You need to be sure you're actually

like, I want like, it's hilarious to me that so many twenty four year olds on Twitter are, like, my number one goal with money is financial freedom. And then they spend six hundred and thirty percent of their net worth on a thirty year mortgage. It literally makes no sense. You need to be sure you're actually

45:10

using your money to live your rich life. And part of that is calculating carefully the biggest purchase you'll ever make. I I wanted to ask one last thing, which is amongst your friend group,

using your money to live your rich life. And part of that is calculating carefully the biggest purchase you'll ever make. I I wanted to ask one last thing, which is amongst your friend group,

45:21

is there a difference

is there a difference

45:22

Is there a pattern that you've known amongst people who earn a significant amount versus those who don't?

Is there a pattern that you've known amongst people who earn a significant amount versus those who don't?

45:29

Like, I have a bunch of relatively high net worth friends who actually rent.

Like, I have a bunch of relatively high net worth friends who actually rent.

45:34

And, yeah, same. Have you seen a pattern in that?

And, yeah, same. Have you seen a pattern in that?

45:37

It's the ones who are like, especially savvy with personal finance. Like, and it's it's like, it's like me telling you Sam, like, hey, Sam, if you eat a lot, you're gonna get full. And you're like, yeah, I know. It's like, Yeah. Okay. We know it's so simple

It's the ones who are like, especially savvy with personal finance. Like, and it's it's like, it's like me telling you Sam, like, hey, Sam, if you eat a lot, you're gonna get full. And you're like, yeah, I know. It's like, Yeah. Okay. We know it's so simple

45:51

when you understand it and you're not being blinded by this idea that I need to buy a house And by the way, this is like

when you understand it and you're not being blinded by this idea that I need to buy a house And by the way, this is like

46:00

a lot of people in any expensive city. By the way, for everyone listening, did you know that it is currently

a lot of people in any expensive city. By the way, for everyone listening, did you know that it is currently

46:05

more expensive to buy than to rent in almost every city in America.

more expensive to buy than to rent in almost every city in America.

46:10

That not did not used to be the case, but with interest rates as they are and with the rising asset prices, it is crazy that people are still recycling the old, you know, phrases of, like, you're throwing money away and rent when right now, in almost every city,

That not did not used to be the case, but with interest rates as they are and with the rising asset prices, it is crazy that people are still recycling the old, you know, phrases of, like, you're throwing money away and rent when right now, in almost every city,

46:24

it does not make financial sense to buy. Alright, man. We're gonna wrap up there. I appreciate you doing this. This is awesome. I'm

it does not make financial sense to buy. Alright, man. We're gonna wrap up there. I appreciate you doing this. This is awesome. I'm

46:32

If you're listening,

If you're listening,

46:33

I want you to go to our YouTube page.

I want you to go to our YouTube page.

46:36

Type in, you know, if you're listening on podcasts, like Spotify or iTunes, go to our YouTube page. So type in my first billing, find this episode. I want you to put a comment if you agree or disagree with us. Oh, no. I'm very curious.

Type in, you know, if you're listening on podcasts, like Spotify or iTunes, go to our YouTube page. So type in my first billing, find this episode. I want you to put a comment if you agree or disagree with us. Oh, no. I'm very curious.

46:48

And by the way, Be nice.

And by the way, Be nice.

46:50

Be nice about it. Alright. That was very nice of you to say. Thank you, Sam. Let me tell you something. You can always recognize someone who has never been to a high cost of living city by the comments they leave. I had a guy. This just happened, like, two days ago. He goes, for me, just such an idiot.

Be nice about it. Alright. That was very nice of you to say. Thank you, Sam. Let me tell you something. You can always recognize someone who has never been to a high cost of living city by the comments they leave. I had a guy. This just happened, like, two days ago. He goes, for me, just such an idiot.

47:05

I

I

47:06

I make more money owning. It's so much better, etcetera. And so I, you know, I like to talk to people. I like to ask questions. They tell me more. And I have this, like, very long conversation with them. He bought a house for, like, seventy five thousand dollars. Okay? He lives in a very inexpensive city. So in a city like that, it actually makes a lot of sense. Here's my here's my simple request for anyone leaving a comment.

I make more money owning. It's so much better, etcetera. And so I, you know, I like to talk to people. I like to ask questions. They tell me more. And I have this, like, very long conversation with them. He bought a house for, like, seventy five thousand dollars. Okay? He lives in a very inexpensive city. So in a city like that, it actually makes a lot of sense. Here's my here's my simple request for anyone leaving a comment.

47:29

Before you leave a comment,

Before you leave a comment,

47:32

I want you to look up properties

I want you to look up properties

47:34

in Palo Alto

in Palo Alto

47:36

or Menlo Park. And I want you to look up those properties, and I want you to find a couple properties that have rented and have sold And I want you to understand the math of a really expensive city, like Menlo Park and Palmyra. You could do that with, like, Chicago as well or Atlanta. Like, I bet you, right now, the numbers would actually still tell you the same story.

or Menlo Park. And I want you to look up those properties, and I want you to find a couple properties that have rented and have sold And I want you to understand the math of a really expensive city, like Menlo Park and Palmyra. You could do that with, like, Chicago as well or Atlanta. Like, I bet you, right now, the numbers would actually still tell you the same story.

47:54

You're totally right. You're totally right. I just wanna show them, like, all the way. In the most expensive cities in America, because I want you to see that it is true in some cities. It will never make financial sense, even after thirty years to buy. And then once you understand that, you go, wait a second. So if that's true, then what about Chicago? What about Atlanta? What about my own city? Let me take a fresh look at this. And that's when you really start to master money. When you take all the preconceived notions you have, you go, ah, maybe that wasn't true. Let me analyze it for myself. That's awesome. I appreciate you. And that's the pod.

You're totally right. You're totally right. I just wanna show them, like, all the way. In the most expensive cities in America, because I want you to see that it is true in some cities. It will never make financial sense, even after thirty years to buy. And then once you understand that, you go, wait a second. So if that's true, then what about Chicago? What about Atlanta? What about my own city? Let me take a fresh look at this. And that's when you really start to master money. When you take all the preconceived notions you have, you go, ah, maybe that wasn't true. Let me analyze it for myself. That's awesome. I appreciate you. And that's the pod.

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