Every year there seems to be someone writing a book on how we can get more wealth and this year is no exception. James Altucher, who is an entrepreneur and established author, has for some time now been writing a series of books called choose yourself guides. These books have been based on how to trade, how to invest and other such things, all associated with choosing the way you want to go about it. This year, perhaps more an altucher confidential 2015 more than anything else offers advice as to how you can choose your own way to increase your wealth. His other books along these lines have been well received and so there is no reason to think that this one will be any different but, this one is perhaps more controversial than the other ones in several respects. First he suggests that you should not buy your own home and then goes on to suggest that you should not pay to go to college. Obviously these are very controversial as owning your home has long been a status symbol that you have been successful and a college degree has long been thought to be essential for a successful life.
Although controversial, Altucher does make perhaps some valid points as to why you would be better off renting your home as opposed to owning it. First he points out that for most people to buy a home, they will have to take out a mortgage and that mortgage often ties up as much as 30% – 70% of the total household income. As an investment for the future, that percentage is far too high to be tied up in any one investment, regardless of what it may be. This is especially relevant because no actual return will ever be seen from that investment as it is usual that if the house was sold, the money would immediately go into buying a next one. He suggests that more wealth could be acquired if you were to rent your home and then use the money you save to make other investments and that way you will see a return on your invested money.
The other controversial point he makes is college and the cost of going to it. He suggests that not only should you not get a college loan but, neither should you even pay to go to college as it is just a scam. He suggests this because although the actual inflation rate over the last 40 years, in real terms, has been 25%, the cost of education has risen more than 1000% in the same period and a better standard of education has not been seen for that extra money. He suggests that any money put aside for college could be better spent gaining experience in a proper working environment, perhaps doing charity work in a hospital or elsewhere. In doing that he says, you will be better equipped for a real job than your 2 years in college would have allowed.