Sure, there’s the whole “building equity” thing. That’s nice. Real estate also tends to increase in value over time. Even if its price growth isn’t consistent, home prices increase in value at a pace of about 4% per year.
That’s not the only or the biggest upside of home ownership, however. A largely overlooked nuance of a mortgage payment is that while home values, prices, and incomes rise during the life of that mortgage, the payment on a fixed mortgage stays the same throughout the lifetime of the loan. Resisting the urge to upgrade your home — and pumping up your monthly payment as a result — can prove to be its own kind of windfall. This alone could eventually produce the aforementioned extra $1,500 per month to sock away in the stock market.
Start a side hustle you love
Finally, there’s a lot to be said for starting a side hustle. Generating an extra $1,500 with it every month is certainly possible.
Side hustles can just be second jobs. But I think starting an actual business has greater upside.
However, to be successful, I think a side hustle business has to meet three conditions. First, it’s got to be something you love doing. Second, it’s also got to be a legitimate business; merely finding people to do your hobby with you isn’t a recipe for success. And third, it’s got to be a business that’s simple and cheap to run, and scalable with no extra cost or time.