This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Sorry
Well…..
Here’s the thing about your home: unless you paid it off, it’s not yours. It’s the banks.
And you’re still not a millionaire unless you can sell the home that nets you a million-dollar profit or enough to close the gap to millionaire status, including your other assets.
If you haven’t paid your house off or haven’t sold your house for a profit that leaves you with a million dollar or more net worth, you can’t count it as an asset that makes you a millionaire.
I’m unsure why people think they’re millionaires if they have mortgages.
How does that even work?
It doesn’t.
This is why people don’t have any money. Too many people are income and liability-driven.
Two Facts:
92% of homeowners are not millionaires (The Next Millionaire Next Door).
Most people do not have liquid assets that equate to 1 million dollars or more.
Many who believe a home can make you a millionaire fall prey to this erroneous concept.
It’s not the home that makes you a millionaire, but your habits.
Furthermore, many people do not leverage their home as an investment property, which means their homes are taking money out of their pockets and bank accounts which make their homes liabilities.
Erase This One Belief
A home is NOT yours once you get approved for a home mortgage loan.
If you can erase this one erroneous belief, you’ll be much better off than the average person.
Many people believe their home is an asset, but this can only be true once the home brings in income.
How To Calculate Your Real Net Worth
Liabilities = All debts (loans, car notes, student loans, personal loans, mortgages, and anything else you owe).
Assets = All items you own (property, stocks, bonds, notes, intellectual property, other passive income such as royalties, etc.)
If your home is unpaid, list the amount you owe to determine your most accurate net worth.
Your net worth equates your assets minus liabilities. For most people, this number will be negative. But for a select few, this number will be positive.
But I want to take it a step further: A real asset isn’t doing much for you until it’s reeling in income.
Let’s say you own a one-million-dollar home outright.
Well, you’re not benefiting from this asset unless you’re having others pay you to use your home (e.g., a renter) or you sell the asset.
Unless it’s bringing you income, you’re sitting on money.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.