Ramit Sethi argues that homeownership isn't the only path to generational wealth. He says to check if your home costs less than 28% of gross income, and define what a rich life means to you instead of following the standard advice to just buy a house.
I do. I know why we do it to ourselves. Because you basically listen to a bunch of people whispering in your ear for the last 25 years telling you homeownership is the only way to build generational wealth and there's no other way to build equity and on and on and on. And you never stop to critically think about what do I want for my rich life? Is my TCO or total cost of ownership of housing less than 28% of gross income? Mm-hmm. Can't do that in a very high cost of living city. Maybe it can stretch it to 30%, 32% depending on debt. You never did any of this. You simply said equity, just as so many people do.
