Plain Milk's Jug

I am in my mid fifties. I have slowly paid off a 25 yr mortgage. I knew originally that I would take a long amortization for cheaper monthly payments. I did NOT buy into the “bi-weekly” scam that banks peddle and made one mortgage payment every month. Now here is the rub. I was never in the right economic class to purchase a house at that time. but I learned one piece of advice from The finance Mogul Warren Buffet, i will never forget and always heed.

You see, Warren Buffet, billionaire, lives in the same house he purchased 35 yrs ago. a small modest bungalow. i live in a small bungalow. He has said that people put too much effort into maintaining appearances. They give banks too much money when they worry about keeping their house size in line with the Jones’.

I have had GenZ co-workers make sideways comments about the house. Much to my inside laughter, they say it is small. They say it is old. They even describe it as “Humble.” Well yes, more than that it is something I will own forever. I wonder if there really is a housing shortage. Has GenZ become so entitled and spoiled? Do they somehow believe they are above small houses (1000 sq ft by the way)? Are they far too arrogant, and believe they should have the best available to them at all times? My short answer is who knows and who cares. My point here is that I could have bought up and purchased more house than I need. I could look like a big wig to people who do not matter to me. But why? In 25 years of home ownership, the value of my house has increased by 150%. My wealth has grown because I had 25 years of lower monthly payments. My mortgage was 650 dollars a month for 25 years. Suddenly all the cash I paid to interest is really in my mind the value of the house as it stands today. The equity allowed me to buy things, vacation, live through life’s emergencies, and exist in a fairly stable world.

when i look today, i see tiny homes, trailer and prefabs, all being sold as the answer to domicile challenges. they are of course a waste, if you are looking for equity and wealth building. You need a Deed. a piece of land the municipality you live sees as a property. but wanting a 400 thousand dollar home when you don’t make the income needed, is a pipe dream. Maybe there are many home buyers or future home buyers who need to realize something. Grabbing that 200 thousand dollar home will still bring you all the equity you need. It also provides stability and wealth-building abilities. But you wont get adored for your frugal purchase. People will always have better advice. However, most of them don’t own a property. They endlessly save for a down payment. They will lose this the first time life throws a curve ball. That’s not stable, nor is it pragmatic.

If younger generations want to actually learn, they should stop just crying about how they have it so much worse. They often hide from living within their means. Instead, they might get a lesson on humility. They would learn humbleness and how much of these qualities it takes to build wealth.

Having less can be having more…. you just have to realize we all aren’t the Kardashians. Taking a more humble approach to finances and property ownership, will guarantee stability and wealth, always.