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that real estate is almost always a exponential increasing investment which can yield great
returns over time. Betty was a great example of why you should purchase a home. Although the
payments were large, and the majority of the payments went to interest, she was able to
purchase small bits of the home through each montly payment which eventually payed off her
home.
We have also seen the value of upgrading your home when you are ready to. Because of her
upgrade decision she was able to increase the starting amount of her exponential increase
which, in turn, allowed her to increase her overall wealth. If she had chosen to stay in her
original starter home that only cost $160,000 she would have not had the chance to increase
We feel as though Betty was truly thinking ahead as she was making her decisions to stay in her
home or leave it. Because she decided to leave and purchase a much nicer home with the
original cost of 300,000 she was able to increase her actual worth to well over 1 million dollars.
We were impressed with her decisions all along the way, however we do not feel as though it
was the most accurate way to show her increase in wealth. There are always unexpected costs
when purachsing a home and because of that the numbers could have worked out much
differently.
We also think that Randy didn’t necessarily do anything wrong in his decision to rent during the
whole time. He limited the amount of risk that he took on and was able to avoid having to pay
for expenses, and other issues that could arise while owning the home. Because of this, Randy
played it safely throughout the whole process, however he at the end of the day he had not
gained the amount of wealth that Betty did because of her risk.
We think it is interesting that although hit took a significant amount of time, Betty’s decision to
purchase a home at such a young age really worked out in her favor. Not many young people
are able to purchase a home because they cannot save up for the down payment, which limits a
lot of people who really want to purchase a home. Because of Betty’s sacrifice she gained a lot
of wealth over the years and in the golden years of her life she is now able to access financial
freedom and live happily. Randy should be happy as well, however it will not know the financial