WEBVTT - The Ownership Generation 0:00:00.200 --> 0:00:03.440 Welcome the Money and Wealth with John Hobrant, a production 0:00:03.680 --> 0:00:14.840 of the Black Effect podcast Network and iHeartRadio. Hey, Hey, Hey, 0:00:14.880 --> 0:00:21.319 this is John Hope Bryant, entrepreneur and host of the 0:00:21.360 --> 0:00:26.119 Black Effect Networks podcasts Money and Wealth with John Hopebriant 0:00:26.200 --> 0:00:30.040 on iHeartRadio. And I've been doing a lot of guests 0:00:30.120 --> 0:00:33.000 recently because I believe they've been bringing you best in 0:00:33.080 --> 0:00:38.720 class intel that you need to transform your life. And 0:00:39.120 --> 0:00:41.400 I'm proud of all those guests. When I bring a 0:00:41.440 --> 0:00:43.440 guest to you know that I believe they are the 0:00:43.440 --> 0:00:45.520 best of the best in their space and their field. 0:00:46.200 --> 0:00:50.200 But when I come at you myself, there's something going 0:00:50.240 --> 0:00:53.199 on that I really want to communicate with you directly. 0:00:53.960 --> 0:00:56.440 I believe the time is now, and I believe the 0:00:56.440 --> 0:01:01.480 message is urgent, and such is the case for this moment. 0:01:01.680 --> 0:01:06.160 I believe the economy is essentially strong, but there are 0:01:06.200 --> 0:01:10.319 outside forces that are messing with the economy, messing with 0:01:10.360 --> 0:01:14.360 its stability that I think will create challenges for it 0:01:14.480 --> 0:01:16.840 in the short term. I think long term it's strong, 0:01:17.360 --> 0:01:20.040 but I do believe in the next six to eight months, 0:01:20.880 --> 0:01:23.919 you may need to find a safer place to hide 0:01:24.720 --> 0:01:28.959 and don't do flaky stuff. Don't do silly stuff. Be 0:01:29.120 --> 0:01:32.679 very mature about your decisions. They got me thinking about 0:01:32.720 --> 0:01:36.760 the larger issue of this generation and a lot of 0:01:36.760 --> 0:01:41.039 stuff I see on social media that just it frustrates 0:01:41.080 --> 0:01:45.240 me because I think people are just misguided. I think 0:01:45.280 --> 0:01:49.080 that they are going to harm their own economic futures 0:01:49.840 --> 0:01:55.400 because they think things are simpler, easier than they are. 0:01:56.160 --> 0:02:00.520 And so this is inspired by my book. This podcast 0:02:00.560 --> 0:02:04.120 episode called the Ownership Generation. That's this episode's title. It's 0:02:04.160 --> 0:02:08.640 a special one hour, two part podcast. Tell all your 0:02:08.639 --> 0:02:12.760 friends to put this on repeat, break it down in 0:02:12.800 --> 0:02:17.160 the pieces, and talk about it in barbershops and nel 0:02:17.240 --> 0:02:21.200 salons and hair salons and fraternity and sorority meetings and 0:02:21.400 --> 0:02:25.239 family meetings. And is inspired by my book now bestseller 0:02:25.919 --> 0:02:30.000 Capitalism for All Inclusive Economics in the Future Proving of America, 0:02:30.080 --> 0:02:34.320 which I'm going to get to in subsequent episodes dealing 0:02:34.320 --> 0:02:37.200 with the book itself. But this book, this piece, this 0:02:37.680 --> 0:02:42.600 podcast episode is inspired by the book, but it's not 0:02:42.720 --> 0:02:47.760 about the book. This is about specifically you right now, 0:02:48.480 --> 0:02:53.200 and particularly if the you right now is twenty thirty, 0:02:54.000 --> 0:02:59.360 even forty years of age, and even paying way too 0:02:59.400 --> 0:03:05.359 much attention to Instagram or social media, or what your 0:03:05.400 --> 0:03:09.080 friends are telling you and who maybe broke themselves and 0:03:09.120 --> 0:03:13.000 not realize it. So let me break this down. You 0:03:13.040 --> 0:03:18.239 don't build a life by renting one. There's gonna be 0:03:18.280 --> 0:03:21.800 a lot of straight talk. I do these straight talk videos. 0:03:21.800 --> 0:03:24.320 There are two or three minutes, and you can almost 0:03:24.880 --> 0:03:29.560 assume this is one hour of continuous straight talk about 0:03:29.560 --> 0:03:31.720 the things that I think matter the most right now. 0:03:31.760 --> 0:03:33.880 And I'm doing this because I love you, Because as 0:03:33.919 --> 0:03:36.800 my T shirt that I'm wearing right now says, actually 0:03:37.200 --> 0:03:40.760 I can you can, Actually you can win. I want 0:03:40.800 --> 0:03:44.400 you to win. And when you want somebody to win, 0:03:44.480 --> 0:03:45.880 you tell them what they need to hear and not 0:03:45.960 --> 0:03:48.640 what they want to hear. I rather you respect me 0:03:48.720 --> 0:03:51.800 and learn to like me, than like me and never 0:03:51.880 --> 0:03:57.920 respect me. So let me drill down on things that 0:03:59.160 --> 0:04:03.720 I think really mad. And it starts with this first 0:04:04.600 --> 0:04:09.160 principle of the ownership generation. You don't build a life 0:04:09.160 --> 0:04:14.760 by renting one, and one gift mean something that you 0:04:14.880 --> 0:04:18.760 have that's part of your life. One gift is not 0:04:18.920 --> 0:04:24.560 enough to build anything worth leaving behind. So part one 0:04:24.920 --> 0:04:30.239 rent a life versus own your life. The false argument 0:04:30.400 --> 0:04:34.600 that's keeping a generation in place, Part two. One thing 0:04:35.560 --> 0:04:46.120 is not enough pretty smart, handsome, educated, credentialed, talented, degreed. 0:04:47.760 --> 0:04:52.400 Why that's only the beginning. It's gonna be a deep episode. 0:04:52.960 --> 0:04:57.599 So let's talk about where we start. I want to 0:04:57.640 --> 0:05:00.559 talk to you today about a decision and you're making 0:05:01.640 --> 0:05:03.880 right now. If you're in that age group that I mentioned, 0:05:03.960 --> 0:05:06.000 or you know somebody you love and care about who's 0:05:06.000 --> 0:05:11.160 in that age group that I mentioned twenty thirty forty, 0:05:11.760 --> 0:05:18.680 maybe you're making decisions even without knowing. You're making them 0:05:20.240 --> 0:05:24.240 every single day. You're either renting your life or you're 0:05:24.279 --> 0:05:28.919 building toward owning it. And most people I talk to 0:05:29.880 --> 0:05:35.760 have convinced themselves that renting is enough, that it's even smart. 0:05:36.760 --> 0:05:40.599 I'm here to tell you that's the most expensive lie 0:05:41.600 --> 0:05:46.920 in the economy. I'm thinking right now about folks who 0:05:46.960 --> 0:05:51.279 show up on business television shows telling poor people and 0:05:51.320 --> 0:05:54.919 working class people and working middle class people not to 0:05:54.960 --> 0:05:59.080 buy a house, not to buy a home, when they 0:05:59.120 --> 0:06:04.760 own one, two, three, four, or five six homes themselves. 0:06:05.120 --> 0:06:07.719 Certainly they own one home. The number one way you 0:06:07.720 --> 0:06:11.440 build wealth in America, everybody who's an investor knows is 0:06:11.520 --> 0:06:15.440 home ownership. It's a lie, but it feeds into a 0:06:15.520 --> 0:06:20.800 narrative that renting and living your best life right now 0:06:21.320 --> 0:06:23.039 is a smart thing to do. I'm going to unpack 0:06:23.080 --> 0:06:27.719 all this now. I'm not just talking about apartments. And 0:06:27.760 --> 0:06:31.839 by the way, I'm a landlord joint venture with CIM Group. 0:06:32.600 --> 0:06:35.400 I sold my last real estate company. I was a 0:06:35.440 --> 0:06:38.520 principal owner. I was the owner and the Promise Homes company. 0:06:38.520 --> 0:06:41.320 I've sold it in twenty twenty one and I have 0:06:41.360 --> 0:06:42.880 a minority stake in that. I'm sure trying to get 0:06:42.880 --> 0:06:46.520 out of that deal right now. But I've partnered with 0:06:46.640 --> 0:06:50.760 CIM Group is incredible organization. They're doing cent to new 0:06:50.839 --> 0:06:53.440 yards here and Atlanta. I'm part of that as well. 0:06:54.120 --> 0:06:58.200 And so I am an investor. I am a landlord. 0:06:58.200 --> 0:07:00.599 I was doing single family, now doing multi family. So 0:07:02.120 --> 0:07:04.160 I'm talking against my own interest, is what I'm saying. 0:07:04.880 --> 0:07:08.440 I'm telling you not to rent from me long term. 0:07:08.560 --> 0:07:11.400 I want you to be with me short term, but 0:07:12.040 --> 0:07:14.160 I want you to at some point to transition. I 0:07:14.200 --> 0:07:17.880 really want you to go from rent to own with 0:07:18.040 --> 0:07:23.360 me or with somebody else. So I'm not here to 0:07:23.440 --> 0:07:28.680 debate square footage and interest rates people. I want to 0:07:28.720 --> 0:07:32.600 talk about the bigger picture. The idea that renting has 0:07:32.680 --> 0:07:38.280 become a lifestyle, a brand, a vibe, and I want 0:07:38.280 --> 0:07:43.680 to challenge that, not to shame anyone, but to free someone. 0:07:44.000 --> 0:07:48.960 I rented right until I didn't me I'm talking about. 0:07:49.520 --> 0:07:53.760 So here's the false argument. So the cultural narrative is 0:07:53.960 --> 0:08:00.800 owning is overrated, renting is freedom. The financial influence would say, 0:08:02.440 --> 0:08:08.040 you're not throwing money away, you're buying flexibility. The tech 0:08:08.360 --> 0:08:17.680 optimized entrepreneur influencer would say, own nothing, access everything. Here's 0:08:17.720 --> 0:08:21.240 what they don't tell you about renting as a lifestyle. 0:08:22.200 --> 0:08:28.760 The landlord me in this example is always building equity. Always, 0:08:28.840 --> 0:08:31.400 So as you're paying rent, paying two thousand, three thousand, 0:08:31.400 --> 0:08:35.080 four thousand, five thousand a month, six thousand, seven thousand, 0:08:35.160 --> 0:08:37.960 eight thousand, ten thousand a month in New York City, 0:08:38.000 --> 0:08:43.360 that's very common that rental rate. You're paying down that 0:08:43.400 --> 0:08:50.120 mortgage of the investor every month, and you're opening up 0:08:50.160 --> 0:08:53.400 a window and just throwing that money out the window. 0:08:53.480 --> 0:08:57.080 With regard to yourself, now, if you're there for a 0:08:57.120 --> 0:09:00.360 short term job, or if you're in that city because 0:09:00.400 --> 0:09:04.240 you have a career or a job, or renting is 0:09:04.320 --> 0:09:07.320 part of a long term strategy for you to transition 0:09:07.440 --> 0:09:12.720 within one, two, three, four, five years into home ownership fantastic. 0:09:13.600 --> 0:09:18.480 There's a strategic part of your thinking. No different than 0:09:18.520 --> 0:09:20.280 you don't want to work at McDonald's for the rest 0:09:20.320 --> 0:09:23.280 of your life. It's a great job at a certain age, 0:09:23.320 --> 0:09:25.960 but unless you're the manager or the general manager, or 0:09:25.960 --> 0:09:27.560 you want to be an owner of McDonald's at some point, 0:09:27.600 --> 0:09:30.040 you want to step up and step out at some point. 0:09:30.040 --> 0:09:32.000 Walmart is one of those rare places where you can 0:09:32.000 --> 0:09:37.120 actually stay with them from cashier to general manager and 0:09:37.200 --> 0:09:39.600 make a half million dollars a year, but that's very rare. 0:09:39.720 --> 0:09:42.360 My friend w Millan literally went from stocking shelves to 0:09:42.480 --> 0:09:45.840 CEO at Walmart. But for most of these places, you 0:09:45.880 --> 0:09:50.160 want to hit it and split it. And same as 0:09:50.200 --> 0:09:54.559 the case with renting versus ownership, the landlord is always 0:09:54.559 --> 0:09:58.319 building equity. Your rent check is writing someone else's wealth 0:09:58.360 --> 0:10:05.800 story freedom. That's a subscription, a very expensive one. But 0:10:06.360 --> 0:10:10.560 this isn't just about housing, which about renting your job 0:10:11.480 --> 0:10:15.080 versus owning your career trajectory. If it's late in late 0:10:15.160 --> 0:10:18.520 long lunch, leave early and you aren't invested in that thing, 0:10:18.600 --> 0:10:21.240 you're just showing up. You're just sort of mailing it in. 0:10:22.720 --> 0:10:26.880 You're really hitting your face on their fist. The employer, 0:10:27.000 --> 0:10:29.880 you're wasting your time and not impressing them. They're not 0:10:29.880 --> 0:10:32.360 going to give you a raise and you have an 0:10:32.360 --> 0:10:37.480 earned one. And I'd rather you waste my money than 0:10:37.559 --> 0:10:39.960 waste my time. No one can waste my time but me. 0:10:40.360 --> 0:10:43.520 I'm ruthless about my time. It's very interesting. Poor people, 0:10:43.520 --> 0:10:48.640 struggling people value cash, and wealthy people they value their time. 0:10:49.559 --> 0:10:52.360 And wealth is a mindset. You make money during the day, 0:10:52.440 --> 0:10:58.080 you build wealth in your sleep. Renting your relationships transactional 0:10:58.920 --> 0:11:06.600 versus commitments. A giver and a giver is exotic. That's relationships, 0:11:06.600 --> 0:11:10.960 that's covenant. But then you have giver a taker. That's 0:11:11.000 --> 0:11:13.920 neurotic and truly, I'm assuming in this case you're the 0:11:13.960 --> 0:11:17.240 giver and then you have take her to take her, 0:11:17.240 --> 0:11:19.520 and that's psychotic. You don't want to really be in 0:11:19.800 --> 0:11:23.719 the last two versions of this. Networking is a taking business, right. 0:11:23.800 --> 0:11:26.800 Relationships are a giving business. You want to be a 0:11:26.840 --> 0:11:32.640 giver and engage with a giver. Right, So what are 0:11:32.640 --> 0:11:36.120 your relationships like? What's your relationship capital? Like? Are you 0:11:36.160 --> 0:11:38.720 hanging around people smarter than you, brighter than you? Sharper 0:11:38.800 --> 0:11:41.000 than you, wiser than you, people who can teach you something. 0:11:41.760 --> 0:11:46.240 Are you the smartest person in your group? That's scary. 0:11:47.320 --> 0:11:50.120 I know a person very very, very smart who hangs 0:11:50.160 --> 0:11:55.280 around people smarter than she is, sorry, less intelligent, less ambitious, 0:11:55.280 --> 0:11:59.520 and less intelligent than she is because she wants their approval. 0:11:59.559 --> 0:12:04.160 I guess, and she had a home and decide to 0:12:04.200 --> 0:12:06.839 move from the house, didn't want to deal with a 0:12:06.880 --> 0:12:08.640 renter and decide to sell the house, and now she 0:12:08.679 --> 0:12:10.680 lives in an apartment because she wants to be where 0:12:10.720 --> 0:12:12.880 all the action is. I think she's won the battle 0:12:12.880 --> 0:12:15.560 on the loss of ward twice. But it's not my 0:12:15.640 --> 0:12:21.960 life to live rendering your identity performing for approval versus 0:12:21.960 --> 0:12:25.680 building from values. Let me go back to the person 0:12:25.679 --> 0:12:27.600 who I mentioned didn't want to deal with the lamp, 0:12:27.640 --> 0:12:30.800 with the renters and tenants and owned ownership drama, just 0:12:30.840 --> 0:12:35.720 wanted to live free. Only in the dictionary does the 0:12:35.720 --> 0:12:39.800 word success come before the word work, because it's alphabetical. 0:12:40.720 --> 0:12:44.960 All things that are valuable are work. Whatever you love 0:12:45.040 --> 0:12:48.640 is going to drive you nuts. Your family, your children, 0:12:48.720 --> 0:12:52.040 your husband, your wife, your boyfriend, your girlfriend, your job, 0:12:52.120 --> 0:12:55.320 your career, your friendships, whatever you love is going to 0:12:55.400 --> 0:12:59.000 be work, so get over it, knock it off. You 0:12:59.080 --> 0:13:00.959 can do it, as I said that, my T shirt says, 0:13:01.000 --> 0:13:04.080 actually you can, but you've got to invest in it. 0:13:04.559 --> 0:13:07.840 Everything's an investment, and if you find a free lunch 0:13:07.960 --> 0:13:14.640 is probably stale. Renting your future outsourcing decisions to algorithms, trends, 0:13:15.360 --> 0:13:19.800 and other people's opinion. I don't love to say it's 0:13:19.800 --> 0:13:21.640 okay if you don't like me. I like me. Not 0:13:21.640 --> 0:13:23.800 one ounce of my self esteem depends on your acceptance 0:13:23.840 --> 0:13:26.320 of me. That's a Quincy Jones quote. God bless his rest, 0:13:26.400 --> 0:13:30.319 his soul, friend of mine. So you've got to understand 0:13:30.480 --> 0:13:33.520 that you're a leader. You are an eagle surrounded by 0:13:33.559 --> 0:13:36.040 buzzers and turkeys. People are not going to understand you. 0:13:36.600 --> 0:13:39.079 So don't rent your future, and certainly don't rent it 0:13:39.080 --> 0:13:42.440 out to somebody else who doesn't have one, and don't 0:13:42.440 --> 0:13:45.200 listen to broke people. You can rent a beautiful apartment 0:13:45.960 --> 0:13:49.199 and still be homeless in your spirit. I see a 0:13:49.240 --> 0:13:55.520 lot of people who've got doorman and fancy rented or 0:13:55.679 --> 0:14:00.000 least cars and clothes they bought on twenty six percent 0:14:00.080 --> 0:14:03.679 credit cards, and apartments that they can't afford trying to 0:14:03.720 --> 0:14:06.199 press people they don't know with money they don't have 0:14:07.240 --> 0:14:10.000 about things that don't matter, and people who don't care 0:14:10.040 --> 0:14:13.480 about them. And for what what is all that for? 0:14:14.200 --> 0:14:17.560 You just rearranging the deck chairs of the Titanic, you're 0:14:17.640 --> 0:14:20.600 just stepping in mess versus over it that you're on 0:14:20.640 --> 0:14:23.920 the Titanic. You're just picking drapes that you know you 0:14:23.960 --> 0:14:27.000 just need to get off the ship and find one 0:14:27.080 --> 0:14:30.760 that is not full of holes in false dreams and lies, 0:14:31.880 --> 0:14:35.120 and one that travels and can get you to a destination. 0:14:38.640 --> 0:14:42.640 So let me talk about that systemic dimension here, because 0:14:42.640 --> 0:14:44.400 some people are like, I just want to live my 0:14:44.400 --> 0:14:46.440 best life. This whole system is rigged and all that 0:14:46.520 --> 0:14:49.400 kind of stuff. And this is from my book Capitalism 0:14:49.400 --> 0:14:52.520 for All, which again which is now a bestseller. Let 0:14:52.520 --> 0:14:57.080 me acknowledge structural realities, not to excuse inaction, but to 0:14:57.120 --> 0:15:01.760 make this message honest and defensible. The argument from Capitalism 0:15:01.800 --> 0:15:07.240 for All for All that ownership gaps are not only behavior, 0:15:07.360 --> 0:15:11.720 they were in part deliberately engineered. I want to acknowledge 0:15:11.720 --> 0:15:16.680 that that's in it. I want to acknowledge that relationships 0:15:16.720 --> 0:15:19.000 are rigged. I mean if you go to not literally, 0:15:19.040 --> 0:15:21.640 but if you go to Harvard. People don't just go 0:15:21.680 --> 0:15:25.640 there because it's better quality education than a university or 0:15:25.640 --> 0:15:28.080 college down the street from Harvard. They go there because 0:15:29.520 --> 0:15:31.920 the relationships you're gonna get at Harvard as you go 0:15:31.960 --> 0:15:33.800 to college there are you're gonna hook each other up 0:15:33.800 --> 0:15:37.280 for the next thirty or forty years. So if you 0:15:37.280 --> 0:15:39.280 hang around nine broke people, you'll be the tenth. The 0:15:39.360 --> 0:15:45.560 opposite is also true. So a system that is designed 0:15:45.560 --> 0:15:48.160 to game you, I want you to game it. If 0:15:48.160 --> 0:15:50.280 you're not working the system, the system is working you. 0:15:50.640 --> 0:15:55.840 We've never mastered financial literacy or capitalism free enterprise for 0:15:55.960 --> 0:15:58.680 most people unless you come from wealth. So it's what 0:15:58.760 --> 0:16:00.480 you don't know that you don't know, but you think 0:16:00.520 --> 0:16:03.880 you know, and the system is set against you. But 0:16:03.960 --> 0:16:06.800 I'm trying to set you free. Let's ungame this system. 0:16:06.840 --> 0:16:09.360 That's what I'm trying to do with capitalism for all. 0:16:09.360 --> 0:16:11.400 And I've told everybody who's read this book. If you 0:16:11.440 --> 0:16:15.200 don't agree by the preface the preface that this book 0:16:15.280 --> 0:16:18.440 is transformational, just send it back to my office with 0:16:18.520 --> 0:16:21.520 your receipt and your cost of postage, and we will 0:16:21.560 --> 0:16:23.760 send you a full refund. I will personally do that 0:16:23.800 --> 0:16:26.200 I've donated the proceeds for Operation Hotel Perache hold my 0:16:27.200 --> 0:16:29.840 financial literacy Philanthropy for the All twenty twenty six for 0:16:29.920 --> 0:16:32.600 my book Capitalism for All, And I'll donated that book 0:16:32.920 --> 0:16:34.800 copy that you sent back to me to a library. 0:16:34.960 --> 0:16:36.560 No one sent it back to me. In fact, if 0:16:36.560 --> 0:16:38.120 you look at the reviews so far as they've been 0:16:38.520 --> 0:16:43.600 all five star. Now I want to be honest with 0:16:43.640 --> 0:16:47.760 you about something. I'm not standing here pretending the playing 0:16:47.760 --> 0:16:52.080 field is level. It is not. The system was not 0:16:52.160 --> 0:16:55.280 designed with everyone in mind to be at the table. 0:16:55.920 --> 0:16:59.160 Red Lining was real, as in real estate red lining, 0:16:59.200 --> 0:17:02.600 discriminatory ending practices was real. And many places probably still 0:17:02.680 --> 0:17:06.960 are communities deliberately cut off from the wealth building machinery 0:17:07.000 --> 0:17:10.760 of this country. That is historical fact, not an excuse. 0:17:12.000 --> 0:17:15.159 But here's what I also know, and this is the 0:17:15.280 --> 0:17:18.560 argument I make in my book Capitalism for All. The 0:17:18.640 --> 0:17:21.879 answer to a system that excludes you is not to 0:17:21.960 --> 0:17:26.120 exclude yourself. Further, to argue with the food bruiser too. 0:17:26.119 --> 0:17:29.119 Even if you're arguing with yourself, the answer is to 0:17:29.200 --> 0:17:33.439 demand a seat. To quote my friend's Deephanie rule, to 0:17:33.520 --> 0:17:37.880 expand the table and add a chair, build the capacity 0:17:38.000 --> 0:17:41.399 and the capital to buy one, as in a seat 0:17:41.440 --> 0:17:43.720 at the table if you have to, and then hold 0:17:43.720 --> 0:17:47.160 the door open for everyone to follow behind you. That's 0:17:47.200 --> 0:17:50.560 what I'm trying to do here with this podcast, in 0:17:50.560 --> 0:17:53.879 my straight Talk Live series and my book and the 0:17:53.920 --> 0:17:57.520 work of Operation Hope and the speeches I give, etc. 0:17:57.800 --> 0:18:00.760 Etcam trying to open the door and hold it for 0:18:00.800 --> 0:18:04.879 those behind me. Or to quote James Brown, I like 0:18:04.920 --> 0:18:08.720 the James Brown version of affirmative action. Open the door. 0:18:08.760 --> 0:18:12.760 I'll get it myself. It's a hand up, not a handout. 0:18:13.280 --> 0:18:16.840 The system needs to change, and it is changing by 0:18:16.880 --> 0:18:19.800 the way. But you cannot afford to wait for the 0:18:19.840 --> 0:18:22.320 system to save you. You have to move, and you 0:18:22.359 --> 0:18:25.439 have to move now. AI is coming like a train 0:18:26.200 --> 0:18:30.119 and is going to threaten everybody's sense of entitlement or 0:18:30.160 --> 0:18:33.840 I'm gonna be okay syndrome. You're not gonna be okay. 0:18:33.960 --> 0:18:35.879 Your job's not gonna be replaced. I put this in 0:18:35.920 --> 0:18:40.479 my book Capitalism for All whole chapter by AI. But 0:18:40.560 --> 0:18:43.960 your job may be replaced by somebody who can use AI. 0:18:44.080 --> 0:18:46.680 That requires you to move, to bob, to weave, to flex, 0:18:46.760 --> 0:18:50.639 be flexible, to gain new skills, to not sit as 0:18:50.720 --> 0:18:56.760 a renter of your own life. Now, while the door 0:18:56.840 --> 0:19:00.000 is still open, I want you to slam it open 0:19:00.200 --> 0:19:05.280 further for others and for yourself. In other words, when 0:19:05.320 --> 0:19:08.399 you get out of your own way. The real cost 0:19:08.760 --> 0:19:13.360 of renting a life. The Federal Reserve Survey of Consumer 0:19:13.400 --> 0:19:18.280 Finance in twenty twenty five, along with the Aspen Institute 0:19:18.320 --> 0:19:24.600 and the US SINSUS Girl, have just absolutely compelling statistics. 0:19:25.520 --> 0:19:28.200 In twenty twenty five, the average homeowner has a net 0:19:28.240 --> 0:19:31.359 worth of four hundred and thirty thousand dollars. Had a 0:19:31.359 --> 0:19:34.320 networth of forture and thirty thousand dollars. The average renter 0:19:34.880 --> 0:19:40.280 hold on now same income level, paying the same amount 0:19:40.320 --> 0:19:44.800 of rent on indoor mortage payment in aggurgate dollars dollar amounts, 0:19:45.040 --> 0:19:47.320 the average renter has a net worth had a net 0:19:47.359 --> 0:19:51.000 worth of ten thousand dollars. I'll repeat that in twenty 0:19:51.040 --> 0:19:55.399 twenty five, the average net worth of a homeowner paying 0:19:55.440 --> 0:20:01.520 the same amount for shelter and making the equivalent and income. 0:20:01.920 --> 0:20:04.480 This is why I keep saying we over index on 0:20:04.640 --> 0:20:08.600 cash dollars money, the bag getting that money, It's irrelevant 0:20:08.600 --> 0:20:11.040 it all the money is an exchange of value. You 0:20:11.080 --> 0:20:12.960 want to build wealth and you build wealth and your sleep. 0:20:13.160 --> 0:20:16.280 That's compounding. So the average homeowner had a net worth 0:20:16.280 --> 0:20:19.600 of forded and thirty thousand dollars. The average renter had 0:20:19.640 --> 0:20:23.679 a net worth of ten thousand dollars. That is a 0:20:23.800 --> 0:20:27.040 forty three to one gap. Again, that's according to the 0:20:27.040 --> 0:20:29.760 Federal Reserve data. Now, who do you think this hits 0:20:30.000 --> 0:20:36.280 the worst? Black people who have forty three forty four 0:20:36.280 --> 0:20:40.200 percent home ownership rate compared to their white counterparts. Right, 0:20:40.240 --> 0:20:42.760 so we're not owning homes with chilling. And there are 0:20:42.760 --> 0:20:45.680 other groups too. But I'm we have the lowest credit score, 0:20:45.760 --> 0:20:48.320 the lowest access to prime credit, the lowest home ownership rate, 0:20:48.359 --> 0:20:50.240 and the lowest net worth. And I'm tired of it. 0:20:50.800 --> 0:20:53.080 I'm sick and tired of being sick and tired, and 0:20:53.119 --> 0:20:58.159 so we have to break this cycle. So I'm giving 0:20:58.160 --> 0:21:01.280 you these and out of their numbers, not because I'm 0:21:01.320 --> 0:21:03.680 an accountant or I love numbers. I like math because 0:21:03.720 --> 0:21:06.560 it doesn't have an opinion, but because numbers tell a 0:21:06.600 --> 0:21:12.720 story that feelings can argue with. So renter versus homeowner 0:21:13.240 --> 0:21:20.280 thirty years two people, same annual household spend, radically different outcomes. 0:21:21.280 --> 0:21:25.240 Two twenty eight year olds same income, same city, same 0:21:25.280 --> 0:21:28.240 starting housing budget of approximately twenty four thousand dollars a 0:21:28.280 --> 0:21:33.359 year two thousand dollars a month. One rents, one buys. Again, 0:21:33.400 --> 0:21:35.960 I want you to take this part, clip it out 0:21:36.400 --> 0:21:39.320 and share it to everybody who says ownership is stupid. 0:21:40.000 --> 0:21:42.880 The median US home price in twenty twenty four four 0:21:42.920 --> 0:21:46.000 to and twenty seven thousand dollars with a ten percent 0:21:46.080 --> 0:21:49.520 down payment forty two thousand, seven hundred dollars. And by 0:21:49.560 --> 0:21:52.119 the way, if you're a person of color, you're a woman, 0:21:52.359 --> 0:21:54.720 you might be able to get down payment assistance of 0:21:54.760 --> 0:21:59.159 about ten percent from an FDIC insured bank. Hello with 0:21:59.320 --> 0:22:02.600 a few times where being a person of color being 0:22:02.680 --> 0:22:06.440 black is an advantage. I'm joking, but I'm serious. And 0:22:06.480 --> 0:22:08.800 if you don't know these programs, you're not ware what 0:22:08.840 --> 0:22:12.280 I'm talking about. Go to Operation Hope online, the Hope 0:22:12.280 --> 0:22:15.760 in Hand app downloaded on your Android or Apple device, 0:22:15.880 --> 0:22:19.440 iOS device are going on our website at Operation Hope 0:22:19.480 --> 0:22:21.560 dot org or call eight eight eight three eight eight 0:22:21.640 --> 0:22:23.520 hope get a hold of one of my people. I 0:22:23.560 --> 0:22:26.359 suggest you go to the app that way, you're in 0:22:26.400 --> 0:22:30.240 the queue. It is. It's hard to miss it because 0:22:30.280 --> 0:22:33.160 you're in the queue on the app, versus you calling 0:22:33.160 --> 0:22:35.920 somebody and then we just missed the call. My team 0:22:35.920 --> 0:22:37.800 will walk you through this. But okay, ten percent down 0:22:37.800 --> 0:22:40.880 payment and a thirty mortgage that let's say six point 0:22:40.920 --> 0:22:44.760 seventy five percent make this reasonable monthly payments about twenty 0:22:44.760 --> 0:22:48.520 four one hundred and ninety dollars. The home buyer spends 0:22:49.840 --> 0:22:54.639 modestly more in early years. By year aged ten, the 0:22:54.680 --> 0:22:58.520 renter absorbing three percent annual rent increases. It's being the 0:22:58.560 --> 0:23:04.399 same or more per month. Now, I'll also tell you 0:23:04.440 --> 0:23:07.639 that in the thirty year mortgage, twenty to thirty of 0:23:07.680 --> 0:23:10.680 those thirty years are probably the interest. That's not a negative. 0:23:10.720 --> 0:23:14.040 That's a positive because the US tax policy in this 0:23:14.119 --> 0:23:16.760 regard as design to support home ownership. So you get 0:23:16.800 --> 0:23:20.400 to write off most of those mortgage payments against your income. 0:23:20.560 --> 0:23:23.600 That's why if you do a detailed tax return, you 0:23:23.720 --> 0:23:27.159 get that back and potentially as a tax refund against 0:23:27.160 --> 0:23:29.440 Talk to your tax people and talk to my people 0:23:29.440 --> 0:23:32.080 that operation. So back to the example, the renter thirty 0:23:32.160 --> 0:23:35.320 years later, total rent paid over thirty years at two 0:23:35.320 --> 0:23:38.920 thousand dollars a month with three percent annual increases. Hold 0:23:38.960 --> 0:23:45.920 on to your boots approximately one point to million dollars, 0:23:46.480 --> 0:23:49.760 and you have nothing to show for it except for 0:23:49.840 --> 0:23:52.680 doorman who says yes, sir, yes, ma'am, who don't care 0:23:52.680 --> 0:23:57.720 about you either, at getting paid. Equity built from those 0:23:57.760 --> 0:24:03.320 payments zero assets owned at year thirty nothing, average renter 0:24:03.600 --> 0:24:07.439 net worth ten thousand dollars according to AID Institute and 0:24:07.800 --> 0:24:11.800 the Federal Reserve. The homeowner thirty years later, mortgage fully 0:24:11.840 --> 0:24:16.399 paid off at year thirty. US median home prices have 0:24:16.400 --> 0:24:20.600 arisen over this period one hundred and eighteen percent after 0:24:20.640 --> 0:24:25.399 inflation since nineteen seventy. This is a Census Bureau, So 0:24:25.440 --> 0:24:28.280 a four hundred and twenty seven thousand dollars home purchase 0:24:28.320 --> 0:24:31.960 today is conservatively worth seven hundred to eight hundred and 0:24:31.960 --> 0:24:34.160 fifty thousand dollars in thirty years. And I think that's 0:24:34.280 --> 0:24:40.760 that number is low. Equity built through principal reductions alone 0:24:40.760 --> 0:24:44.679 approximately two hundred thousand dollars in this example. Total acid 0:24:44.760 --> 0:24:48.680 value at year thirty, let's say eight hundred thousand dollars 0:24:48.840 --> 0:24:53.879 owned free and clear. Average homeowner net worth four hundred 0:24:53.880 --> 0:24:56.679 and thirty thousand dollars according to the Federal Reserve. And 0:24:56.760 --> 0:24:58.880 I think these numbers on the home ownership level are 0:24:59.080 --> 0:25:01.960 very low. I think over thirty years at number is 0:25:02.040 --> 0:25:05.800 easily double that. But I'm just being conservatives for those 0:25:05.800 --> 0:25:09.640 who want to argue, let's just hope for the best, 0:25:09.680 --> 0:25:12.160 expect the worst, and condition your mind for whatever happens. 0:25:12.280 --> 0:25:17.040 I'd rather underestimate and overperform than overestimate and underperform. But 0:25:17.080 --> 0:25:20.280 in this example, same income, same city, roughly the same 0:25:20.359 --> 0:25:25.000 monthly spend on shelter. Thirty years later, one person has 0:25:25.000 --> 0:25:28.199 an eight hundred thousand dollars asset they own outright. The 0:25:28.240 --> 0:25:31.560 other person has ten thousand dollars in net worth and 0:25:31.600 --> 0:25:35.480 a landlorder who just raised the rent again, same money, 0:25:35.520 --> 0:25:39.320 same year, two completely different financial lives. That is not 0:25:39.680 --> 0:25:44.000 an accident. That's a decision, and most people don't even 0:25:44.119 --> 0:25:48.080 know they're making it. They're just living. They don't I'm 0:25:48.080 --> 0:25:51.840 just chillingtting. No, No, you're making a decision every day. 0:25:51.960 --> 0:25:55.840 The wealth gap between homeowners and renders has grown seventy 0:25:55.880 --> 0:26:01.959 percent since nineteen eighty nine, and it's still accelerated. Seventy 0:26:02.000 --> 0:26:04.400