So you want to buy a house?
We got you with two creative ways to get into a home in your 20's.
Welcome to issue #014 of DMD.
A common concern from young people today is “how will I ever afford to buy a house?” It’s legit given the cost of owning a home in just about any market in the country. But, have no fear as we have two creative ways to consider getting into a home sooner than you thought might be possible:
1. Get a roommate to offset the monthly mortgage.
Lauren R. was savvy and bought a two bedroom condo in Columbus, Ohio two years ago and a friend agreed to pay rent for living with her.
The friend paid one fixed rent payment which included all utilities and they split the monthly TV streaming service. A win/win.
The rental payment covered almost 65% of her mortgage, taxes and insurance for being the homeowner or can be used to pay more toward the principal on the home loan.
2. Rent to Own Agreement
Allows you to rent a house with the option to buy it at the end of a specified period, with part of the rent paid during this term going towards the purchase price.
Provides time to save for a larger down payment on the home.
Locks in purchase price which can protect you from market price fluctuations.
You can find these set ups through most real estate online listings.
Rinse and repeat #1 above to offset your mortgage payment for a year, two years or more when you become the owner - if you need to.
Being financially rebellious means thinking about all things money differently and housing is no exception.
Money Moves
Take a listen to our recent podcast episode with Alex Witt - a young financial planner with Prosperian Wealth Management.
No need to be intimidated by a financial planner as Alex works with any young professional to help them understand the impact of early in life financial decisions.
Great insights from working with other young clients.
At the end we share some practical tips on becoming aware of how you spend your money.
Markets update (stocks and crypto)
The S&P 500 (where most of the stocks in your ETF’s and mutual funds are located if you have an investment account) is down 0.5% YTD. A big reversal from being down over 10% just a month ago.
The Nasdaq (which has a heavy concentration of tech related stocks) is down nearly 3% so far in 2025. Another big reversal from 30 days ago.
Stock in focus: Tesla - The stock of this electric vehicle and battery maker, autonomous driving, solar tech and so much more is trading at $316 per share and is up 84% over the last 12 months and 494% over the last five years.
Bitcoin trades at $102,000 and is up 8% YTD and 66% over the last 12 months.
Top alternative cryptocurrencies Ethereum, Solana, XRP and Chainlink trade at $2,439, $170, $2.51 and $17.03 respectively with the total crypto market cap just over 3.4 trillion - about $500 billion from all time high (ATH).
Get Savvy: Amortization
Definition: Amortization refers to the process of spreading out a loan into a series of fixed payments over time. You pay off the interest owed and gradually reduce the principal balance with each payment. This term is commonly used in the context of a home mortgage.
Why It’s Important: Understanding amortization is crucial for you to take on a large loan, especially when purchasing a home. It affects how much interest you will pay over the life of the loan and determines how equity builds up in your property.
Example: Imagine you have a 30-year fixed home mortgage. Each of your monthly payments is calculated so that by the end of the 30 years, you will have paid off both the initial principal amount borrowed and the interest charged by the lender, assuming all payments are made on time.
Use in Real-Life: By understanding amortization, you can better plan your finances, choose the right loan products, or even decide if making extra payments toward your principal balance is a good strategy to reduce total interest costs and pay off your loan earlier.
Stocks
ROTH IRA (held with Robinhood)
I own the following ETF’s: VOO (tracks 500 stocks that make up the S&P 500 index), VTI (total stock market that tracks 4,000 U.S. stocks) and VYM (tracks high dividend paying stocks).
I own the following individual stocks as of May 12, 2025: Marathon Holdings (MARA), IonQ (IONQ), Celestica (CLS) and Robinhood (HOOD).
SEP-IRA (held with the Acorns saving and investing app) - this is my “401(k)” because I’m self-employed.
Vanguard S&P 500 ETF (VOO), iShares Core S&P Mid-Cap ETF (IJH), iShares Core S&P Small-Cap ETF (IJR), iShares Core Total International Stock ETF (IXUS), iShares Core U.S. Aggregate Bond ETF (AGG)
Personal investment accounts (Acorns, Robinhood, E*Trade)
Moderately aggressive portfolio (mix of stock and bond ETFs) and individual stocks of Tesla (TSLA), Nvidia (NVDA), Bitcoin ETF (IBIT), Stryker (SYK), Celestica (CLS), Robinhood (HOOD), Adobe (ADBE) and Visa (V).
Basic tenet of investing in stocks - when you automatically invest weekly or monthly into solid growth stock ETF’s and mutual funds you don’t have to worry about the ups and downs of the stock market. Time, based on historical evidence of the U.S. stock market, does the heavy lifting of wealth creation. Stocks are your primary foundational investments to winning the money game.
Over the last 150+ years the U.S. stock market has given investors about a 10.2% annual ROI. Fantastic annual returns that compound into significant wealth.
Crypto
Currently own Bitcoin (BTC), Chainlink (LINK) and Star Atlas (ATLAS).
Crypto is part of my asymmetric (high risk, high reward) investment portfolio due to the potential to accelerate my overall investment returns over time.
Side Hustle Differently - Market Research Tasks
Overview: Advertisers and marketers are always looking for honest feedback on their products and services. After class or work you can easily make $500 or more per month by filling out surveys and giving valuable insight and feedback.
1. Freecash.com
From trying out new apps, playing games and filling out surveys this site can help you fill in gaps of spare time and generate some real cash.
Similar to freecash.com you get paid cash and grocery shopping dollars in return for reading emails, watching short videos and filling out surveys
Young Money University has helped thousands of young people begin using Acorns as one of their initial investment accounts. Takes five minutes to set up and they automatically invest your money into one of five investment portfolios based on your age. You don’t have to choose the stocks -phew!
Click the Acorns logo above or this link to get started on your investment journey. You will receive a special $40 bonus as long as you set up at least a $5 or more weekly or monthly recurring investment.
Until next time, thanks for being a valued subscriber to DMD and choosing the path of financial rebellion to create a better life for you and others.
Please take a second to share the DMD newsletter with others to help them do money differently too. Thank you!
Todd