Like many Americans, you may wonder if overnight success in the stock market is worth the risk of investing. With Facebook’s stock going public recently, interest in stock equity has risen significantly. However, the best way for Americans to ensure wealth is to invest in home equity.
More than half of Americans invest in home equity while fewer than half invest in stock equity, showing the strength and reliability of investing in home ownership. Simply making house payments may be a better investment than risking money on the next big initial public marketing.
Some believe that renting a home is cheaper than owning a home and will save you more money in the long run. However, the exact opposite is true: owning a home rather than renting allows homeowners to see greater financial gain. Renters are more likely to spend money than save it, while homeowners are the opposite. That means more money in the bank for a longer period of time, which quickly adds up.
Money saved in the bank is less likely to go toward a major stock investment and is more likely to accumulate wealth as you head toward retirement. For more information and interesting statistics about home equity, keep checking back here.