How to Become a Millionaire by Renting

5 Jul 2025 · 1 min
1:01

In this German‑language segment, Ramit Sethi argues that if renting is cheaper than buying a home, the renter should invest the monthly cost difference in a low‑cost index fund that historically returns about 7 % after inflation. He illustrates the power of this approach with a concrete example: saving just $1.98 per month for 30 years would compound to over $2.2 million. Throughout the monologue he uses vivid, humorous imagery of homeowners struggling with repairs (e.g., painting, fixing trim, lacking an Allen‑key) to contrast the hassle of ownership with the ease of investing the rent‑saving surplus. The core message is a clear, actionable recommendation: rent when it’s cheaper, and channel the saved cash into a diversified index fund to build wealth.

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