The REAL Reason You Can’t Afford Your Own Home

The real reason you can't afford your own home, the real reason most people are priced out of the housing market. Now, I'm not going to apologize for this, but what I am going to say right now, most people are not going to like because I think people love blaming the government and the banks for soaring house prices and wages not keeping up with the affordability of homes. Do you remember back in the day, probably only two or three decades ago, where you only needed one income and a man could maybe just have a simple job, you know, a butcher, a baker, a candlestick maker and he could afford to keep his whole family in a nice house and now you need two mortgages and two jobs and most people can't afford to get onto the housing ladder until probably in their 30s or even in their 40s. And these are economic factors which push up house prices and why wages don't keep up with house prices. But no one's taking responsibility for their own money management. And I want to point some things out to you.

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So you feel like house prices are high. Yet if you buy two Starbucks a day, that is £12,775 that you've spent in five years. People want to blame external factors for soaring cost of living, yet they're spending £12 a day out on lunches over five years. That's £21,900 because you cannot change house prices, but you can change where you spend or invest your money. Do you know just £20 a week on scratch cards is £5,200 in five years? Do you know £35 a week on alcohol, which isn't a lot of drink by the way, is 9,100 pounds in five years? Do you know that two takeaways, Netflix and Jim is 100 pounds a week, 430 pounds a month, that's over 26,000 pounds in five years. So you know, I love to rant about the system. You know, I don't think that the central banks and the governments, I don't think they have humanity's best interests at heart. I think they're a profit making corporation focused on maximizing shareholder value. I believe that the governments and central banks work together in cohorts when they're supposed to be independent. And their goal is maximum shareholder value and maximum profit for whoever owns these corporations and whoever runs the government. And that isn't best for society and humanity. And I believe that to be true. However, house prices will be what house prices will be and you can't control them. All you want to do is own them. Because let's put the shoe on the other foot. If you owned a load of houses, would you be really happy that house prices are really high? Of course you would. If you owned a load of houses with some good debt, would you be happy that inflation is high? Well, if you understand how debt works, you would be happy because inflation wipes down debt as well as pushes asset prices up. So really you have to take responsibility to manage your own finances and to make housing, whether it's investment or your own home, affordable to yourself. Now let me total all this up because it's quite shocking. Just two Starbucks a day is 12,775 pounds in five years. Just one lunch a day is 21,900 in five years. Just 20 pounds a week on scratch cards is 5,200 pounds in five years. 35 pound a week on alcohol, nearly 10 grand in five years. Takeaway Netflix and gym, 26,000 pounds in five years. That's 75, 975 pounds in five years on things you don't have to spend money on. If you don't own a home. And instead of moaning about the systems and governments, I moan about it. But I do something about it, and I hope you do something about it. Start looking at how you can control your basic expenses. And then you'll be able to afford a house or multiple houses by owning houses as an investment. And then when they go up your benefit instead of it hurting you. Because you know, when house prices go up, the rich get richer. Why do the rich get richer? One simple word. Assets. Assets go up. When inflation goes up, the rich own assets. So when inflation goes up and assets go up, the rich get richer. The broke own liabilities are. And liabilities go down in value. The broke have cash or savings, not much, but some. And that goes down in value with inflation. So when you have high inflation like we've had since the lockdown, you have cash asset and liabilities go down a lot. That's why the poor get poorer. You have assets go up a lot. That's why the rich get richer. And then money moves from those who value it least, which is the broke, otherwise they'd be rich, to those who value it the most, which is the rich. So you always have a flow of from money from broke people to rich people. I'll give you an example of this. Do you know who Louis Vuitton, Marie Hennessey are? LVMH. Do you know who owns LVMH? Bernard Alnaut. He's the third richest man in the world. He's worth over 200 billion. Now, broke people buy brands, rich people own brands. So people go broke buying brands, trying to impress people they don't even know or like. And the owner of the brands get rich. And you know, in this recession and lockdown, or at least, you know, these high inflation and post lockdown, these designer brands went up in value. And all that happened is broke people who can't afford to buy handbags make rich people even more rich buying their brands. It's funny, there was this meme going around, this, this massive outrage because a Dior handbag was $57 to make and was sold for $3,000. And everyone's like, that's a scam. No, that's smart business. And it's the dumb buying the bag for three grand that can't even afford it, moaning about house prices. So you could save 75000 pounds in five years or 15 grand a year by just not spending wasteful money. And then with 15 grand a year, you could buy one house a year. You could have five houses in five years, and in 10 or 15 years that could be enough to retire on. So don't expect to make more money until you learn to manage what you've already got. See on the other side, when we're all millionaires. Foreign.

This episode was brought to you by Disruptive Media, helping bold entrepreneurs stand out through podcasting, video and social content. Visit disruptive media.co.uk to learn more. This episode was brought to you by Disruptive Media, helping bold entrepreneurs stand out through podcasting, video and social content. Visit disruptive media.co.uk to learn more.

Sam.