Source: https://youtube.com/shorts/3f73JpmLLkE

So you want to make more money? We’ll tell you what all millionaires do to make more money. The first thing? They don’t pay rent.

You might think, “it’s because they are rich already.” Point taken, but if you want to know how millionaires make money, you must understand how they think. And that sometimes requires a massive shift in mindset.

Are you ready? Let us explain what we mean when we say millionaires make more money by not paying rent. 

What Happens to Your Money When You Pay Rent

Imagine this scenario. You have a job, and you pay rent in your current home. All because somebody told you home ownership is over-rated or too costly for you.

You're handing your money to your landlord as you rent his house monthly. And they get to keep them in their entirety. No problem, right?

Now, you got a new job, and you have to move to a new place! What happens to all the money you gave to your landlord? They won’t come back to you. 

At least, he’ll give your security deposit back, which roughly equals about a month’s rent. Now, you’re on your way to giving your hard-earned money to other people again.

Why Home Ownership Makes You More Money

Meanwhile, if you own that same home, the monthly payments will return to you as equity. By definition, equity means assets after liabilities. In short, equity is your net worth after taking out all your debts, and money is only one part of it.

As you pay for your home, your money is not lost but only transferred to a valuable asset. In this case, your home. And there are many other types of equity you can own, including business, real estate, stocks, and cash on hand. 

All of these together build up your equity, and this value is what Forbes publishes in their magazines. The millionaires' net worth and total equities mean their millions are not entirely cash. Instead, they spread out their riches into assets, like homes. In short, they own homes, not rent them.

Final Thoughts

Most people think owning a home locks them into a single place more long-term. But in finance terms, 91% of all millionaires have made so much money on the backs of real estate. So, if you want to make more of these, you should stop handing them to your landlord monthly. 

Stop paying rent for your home; start owning them. 

And that’s how millionaires make more money by not paying rent. If you’re wondering if you can buy a home here in Delaware when you’re not married, read about it here. 

And if you want to start owning your home rather than pay rent, contact us today, and we will help you get started.