My husband and I both make six figures, but we still rent because we don't just want to be rich, we want to be wealthy.

@wealth_diet

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Why it worked

The video addresses a common financial debate with clear, relatable math that challenges conventional wisdom, making it highly shareable for those feeling priced out of the housing market.

Summary

The creator explains why she and her husband choose to rent instead of buy a home despite having a high income. She compares the monthly costs of a mortgage versus rent and argues that investing the difference in the S&P 500 is a better wealth-building strategy.

Structure

1Introduction of the premise: renting vs. buying
2Comparison of monthly mortgage vs. rent costs
3Explanation of investing the difference in the S&P 500
4Discussion of the opportunity cost of a down payment
5Mention of additional costs of homeownership
6Conclusion: renting is not inherently bad for wealth building

On-screen text

RENTING TO BUILD WEALTH DUAL SIX FIGURE INCOME | $500,000 INVESTED $875,000 BUY: $6,000 RENT: $3,300 + $2,700 $32,400 A YEAR INVESTED $175,000

Original caption

Our most asked question on all my videos is asking why I rent! Diving into the numbers on why renting is a better financial move for us compared to renting. #PersonalFinance #rentingvsowning #wealthdiet #wealthbuilding #Budgeting

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Transcript

My husband and I both make six figures, but we still rent because we don't just want to be rich, we want to be wealthy. Let me explain how we can grow our net worth faster by renting instead of buying. So the house we currently live in would sell for $875,000. If you put that into a mortgage calculator with 20% down, that would be $6,000 a month with mortgage, insurance, and taxes. We currently rent for only $3,300 a month. That's a $2,700 difference. And no, we don't spend the extra money. Instead, we invest it and put it in things like the S&P 500, which historically outperforms the housing market. Speaking of, if we want to put 20% down on this home, that would be $175,000. We would pull that money out of savings and our investment accounts, which like I said earlier, the S&P 500 historically outperforms the housing market. And these calculations also don't account for other things renters don't have to pay for like home upgrades, if something breaks, other taxes and fees. All this to say, we do eventually plan on buying a house, but right now we don't plan on staying in this area long term. I'm not against buying a home, but don't let people convince you it's the only way to build wealth.