A home purchased with CASH
While driving to the gym this morning, I turned on “The Ramsey Show’s Highlights” for 8/26/24 and listened to a caller ask Dave a question. The question was from a couple who had saved enough to buy their home in cash. When I heard that, my hand flew into the air as I wanted to give the caller a High-Five! Wow, paying cash for your home in this market where the median home price is >$400k?! Incredible! However, I digress.
The caller asked Dave if he should buy the cash home or invest the money and take out a traditional mortgage. He heard from those close to him that he could have a higher return from the market, and even though interest rates were higher now, they could always refinance. Also, the spread (difference between the market returns and interest on the mortgage) would be positive. As you can probably discern, Dave’s response to this question was to pay cash for the home. And what I’ve learned to appreciate by listening to the show, even more than the response, is the WHY to his answer. For his reason for his response, he goes on to talk about the largest-ever Millionaire study they conducted, and uses the phrase: “If your WHY doesn’t make you cry, FIND ANOTHER WHY!’
10,000 Millionaire Study
You may be familiar with the millionaire study conducted by the Ramsey Solutions team many years ago, and there is the possibility that you have heard Dave or other personalities reference it on their podcasts, YouTube videos, or other media outlets.
This study has many highlights, but one statement from the study that I have always appreciated is that “Millionaires are made, not born.” This means intentionality is critical to success, and only 3% of millionaires (according to the study) have inherited $1 million or more. Needless to say, the opportunity for success and to become a millionaire is available to all!
To read more about the study, click on the link below:
Intentionality
We’ll dive into intentionality and how all this ties in with your investment methodologies, but it is essential to understand that just like millionaires – success is not born. Some may be blessed with high-performing talents, from athletic abilities to academics, communication, and even emotional intelligence. Almost all are not innate; rather, they are made/taught. Thus, the intentional decisions that lead to our heuristic mentality/capacity and capabilities are derivatives of our exposure to and exploration of these talents. Trust me, you all have a talent; some are more obvious than others.
Whether you are saving for your emergency fund, paying off debt, or saving for retirement, intentionality is a huge factor when building wealth. Regardless of where you are at with your financial journey, the financial advisors on the team can help point you in a direction to start.
We’ll explore intentionality and components of intentionality throughout the next few weeks, so come along for the ride!
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