Rent vs Buy, Crypto news, and Economic takeaways
Are we at the bottom in housing? Mindset shifts and easy money!
👋 Hello Everyone. So much to cover. Inflation remains high, consumer spending is down, massive layoffs are being announced daily and the banking industry is still having issues. So what does that mean for us? As scary as it sounds I feel it is still business as usual, although with a heightened awareness. There is money to be made all around us, even with so many uncertainties. So where to start? In my opinion its starts with a well-rounded portfolio (index funds, ETFs, stocks, crypto, precious metals, real estate, art) that helps all of us hedge against the broader market issues. So what do I like and what is working right now:
High Yield savings accounts. I like Marcus, Wealthfront and UFB direct. But do your own research and pick one that you are comfortable with. This is free money and better than leaving your funds parked making nothing.
Having a portion of your portfolio in cryptocurrency. I think everyone should have exposure to crypto as the adoption and disruption continue to grow. So many people equate the volatility of crypto to it being a scam and that is just not the reality. Like any growth sector there are bad apples but if crypto wasn’t here to stay the largest hedge funds, investors and companies in the world would not be adopting it. For purchasing I like Coinbase, Crypto.com and Public.com. I recommend sticking with the blue chip players such as Bitcoin, Etherium, Ripple, Stellar and Quant.
Treasury Bills. This is a great product to integrate into your portfolio. Paying a yield of over 5% right now treasury bills are a great way to make passive income while also having tax benefits. Check it out at Public.com (use my link in bio to get FREE stock. The affiliate code is richhabits!
The key takeaway is to make sure you are simple not leaving your money parked. Inflation rates are too high to not have your money working for you.
📣 Rent vs Buy? Whats next for the housing market? - and my key takeaways!!
So the million dollar question!!!!!! Should you rent or buy right now? This is one of the #1 questions I get asked weekly by 100s if not 1,000s of people. So let’s look at the news cycle and the numbers surrounding this debate.
Buying a primary home in 2023 costs roughly $1,000 more per month than renting. This does not shock me and is likely not the entire story. Too many people leave out key expenses when calculating their actual home ownership costs.
In 45 of the 50 top metro markets in the US a renter pays roughly 40% less than a 1st time home buyer. So please let that sink in as you think through what is best for you.
The average 30 year fixed mortgage rate is 6.59% up from 3.3% of 2 years ago. So this looks daunting but is it? I don’t see it that way.
So whether you are thinking about buying your primary home or your first investment property, there are a lot of factors to consider. My opinion for those just starting their property journey is that you should really consider house hacking through the purchase of a duplex or quadplex. This allows for your tenants to pay the your mortgage monthly and allow you to have more free capital for other investments. You also get the tax and capital appreciation benefits.
Now if you are set on buying a primary home and wondering if its a good time to buy the answer is yes!! Why? Because the same house you looked at 2 years ago is likely 20-30% less and you won’t be face with the multiple, over ask offers. Yes the interest rates are much higher but in the end you come out way ahead since you can save immensely on the purchase price and refinance later as rates ease.
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🎙️ I am also really excited about how quickly the podcast has grown. So thank all of you that have downloaded and given it a listen. For those of you that have not stopped by it is the Rich Habits podcast on Spotify and Apple. And please feel free to DM me or message on any platforms and let me know your thoughts and takeaways. For all PAID community members please note that the private livestream is up and running and I am so excited for what we will be covering this week. It is scheduled every Thursday @ 7pm EST.
💸 This is for all of you. I wanted to touch on mindset because I feel it is a critical function that affects happiness and the creation of the life we desire. So many people, including myself have struggled with limiting beliefs and I am proof that this can be overcome. I see it in my daily life, through my comments and many of you DM me regarding this topic. The truth is that your mind is what you feed it. And I truly believe that a large portion of society struggle with this lack mentality and let it spill over into their relationships and financial lives. I know for me the turning point was waking up every day and practicing gratitude. By realizing my blessings each morning I feel it aligns my thought process to take on the day.
The books that I feel can help the most as you start your journey - Atomic Habits by James Clear and Think Again by Adam Grant.
🚨 CRYPTO is on the move even with the SEC seemingly trying to stifle all progress in the US!!!! And do you hold any Gold or Silver?
Google trends are showing a huge upswing in searches related to “how to buy Bitcoin” and “where to buy gold”. This is a strong indication as to the public sentiment with respect to the economy and looming banking crisis. I have been preaching for months/years that everyone should have a portion of their investable capital in crypto and precious metals and now people are finally understanding the importance of diversity in these uncertain economic times.
Just getting started in crypto? It’s not as scary as one would think. You can open an account and attach your bank account pretty quickly and easily. I like Public.com (there is a link in my bio - use the affiliate code “richhabits” for a FREE $10 in stock when you fund the account) and Coinbase is also a great place to start as well. To build your portfolio I would stick to the blue chip cryptos such as Bitcoin, Etherium, Ripple, Stellar and Avalanche. I also like Chainlink and Polygon. Still Nervous - I have created a crypto blueprint and my team is updating it now. We will be releasing it to all of you in the coming days. It will help you with account creation, onboarding and just the overall navigation of the platforms as you get started. So get out there, do some reading and get a better understanding of the importance of crpyto and the associated blockchain.
🤔What is real?
On your journey to wealth and financial freedom always remember - that there will be hiccups and detours along the way. And also everyones journey and outcomes are different. This is critical to remember, given the comparison based lifestyles we all live today. So although I am constantly preaching “Ok so we have the plan, Let’s Goooo!” I want to make sure that everyone understands it’s not a one size fits all plan when it comes to our financial journeys. I am here to provide the best information I can with respect to business, mindset, finances and investing from my over 35 years of experience. And my daily goal is to help all of you create “Rich Habits” to help you achieve your financial and life goals. So we will be constantly adapting the plan to optimize our investment capabilities through the good and bad of all economic situations.
Weekly Book Excerpt (Think and Grow Rich - Napoleon Hill)
“Deliberately seek the company of people who influence you to think and act on building the life you desire” Wow I love this quote. It really nails the concept of - you are the five people you surround yourself with. I talk about this concept a lot and I truly believe your surroundings dictate your habits and outcomes. Do you agree? It just seems to line up throughout society. Keeping your life in order, in my opinion, is very important. And I don’t just mean keeping your car clean, your laundry kept up and your house in order. It goes further than that. I think that having your environment in order helps with creativity and your finances in order definitely helps you reach your wealth goals much more effectively. Would love to hear your thoughts on this…..
Money Mindset - Weekly insights
As things appear to be getting increasingly more uncertain I think it is more important than ever to really sit down and make a financial plan. And this can be just a pen to paper overview that is based on a 3, 6 and 12 month best and worst case scenario. Now I don’t say this to create a fearful situation as it is more so a reminder than now is not the time to set it and forget it with your money. Assuming monthly expenses continue to rise in price, think consumer goods, gas, services, rent, etc you have to look at where can make cuts and create more income.
Brand of the month - Dun & Bradstreet
I am excited to add Dun & Bradstreet to my portfolio of companies that I proudly represent. A DUNS number is so important to the success of your small business. So if you have not applied for one please read up so you can understand the importance of it. Please use the provided link so you can check out all the amazing benefits for your company -
D&B link
Thanks for following along. See you soon!