My rich nerd,
Many of our callers ask: “I want to buy a home, but can I afford it?" Welp, introducing…👇
🏠 The Rich Nerd Buy-A-Home Checklist (better name TBD)
You might be ready to buy a home if you check these boxes:
✅ No more than 30% of gross income going to total monthly housing costs. That's mortgage + taxes + insurance + HOA + maintenance. The whole burrito🌯.
✅ Your 6-month emergency fund in your HYSA is still intact AFTER the down payment + closing costs. This should also reflect your new housing costs.
✅ No high interest consumer debt. Pay off all consumer debt 6% or higher.
✅ You plan to live in the home for at least 5–7 years. Your home needs to appreciate enough to offset closing costs, interest, insurance, and property taxes. Otherwise, you lose money.
✅ You're already investing for retirement and will continue after buying. A home can be part of a retirement plan, not the whole thing.
💡Can’t Buy? Good News
Here's the main lesson, and I need you to repeat after me: you do NOT need to own a home to build wealth. Louder for the uncles (like me) at Thanksgiving.
I'm not saying rent forever. However, renting is over 30% cheaper in most places people want to live. You need to invest the difference. Keep reading to see how one of our callers is projected to be a multi-millionaire even though she’s renting.
Renting also buys you flexibility. Career pivots, geographic moves away from your crazy ex, lifestyle changes, all easier when you're not anchored to a 30-year mortgage.
🎧 This Week's Audit: KP in Miami
This came up because we audited KP, a 34-year-old in Miami, who came in saying:
"I feel behind. I don't know if I should keep renting, buy here, or move. I just need a plan."
$96K income, $140K cash, $205K invested, ZERO debt. But Miami's $500K starter homes (and HOAs) would've eaten 75% of her take-home — and she didn’t know what to do…
By the end of the call, she had clarity: Keep renting for now, lean into her promotion, and move to a cheaper area if she wants to own sooner. She also learned she's doing WAY better than she thought — on track for ~$4M by 64 (renting btw). That shift — from "I'm lost" to "I have a plan" — is the whole point of what we do.
🚀 Want That Same Clarity?
This is just one type of coaching we're providing in our new private community.
🔥 The waitlist is open, but we're only accepting 10 founding members.
I’m excited to build this community with you all!
Talk soon, — Imran
