Passive income expert JL Collins, best known for his book ‘The Simple Path to Wealth’, made an appearance on The Dairy of a CEO podcast with Steven Bartlett in January
Young adults chasing financial freedom could be unknowingly sabotaging their long-term wealth, warns a money expert. JL Collins, best known for his book ‘The Simple Path to Wealth’, appeared on The Diary of a CEO podcast in January to issue the warning.
The reputable financial educator, who has been investing for well over four decades, explained to host Steven Bartlett that youngsters are making “the biggest money mistake” — buying a house too early. He says it often inflates costs and ties up capital that can otherwise be invested.
“If your goal is to become financially independent at a young age, you probably don’t want to go buy a house,” he explained. This, he said, was due to people buying more than what they need, driven by bank lending limits rather than financial strength.
Collins remarked that while owning property can enhance life, most young buyers are “borrowing the most money a bank is willing to give” and stretching their finances to do so — a strategy he says can create long‑term financial strain.
He added that additional costs such as renovations, furnishing, landscaping, taxes and maintenance often follow, pushing up the true cost of home ownership beyond just mortgage repayments.
According to Finder UK, only about 35 per cent of people aged 16–34 own their home, compared with 77 per cent of those aged 65 and over, reflecting widening generational barriers to buying property.
Despite this, many young adults still aspire to buy. Research by the HomeOwners Alliance shows that around one in five homeowners aged 18–34 rely on support from the ‘Bank of Mum and Dad,’ while more than a third of younger buyers take out mortgages with terms of 30 years or longer.
Mortgage costs themselves also present challenges. Savills reports that the average UK mortgage for first‑time buyers hit a record high of £210,800, placing substantial financial commitments on younger households.
Affordability pressures are contributing to broader trends. A report from Skipton Group and Oxford Economics found that 98 per cent of UK adults living with their parents could not afford to buy a home based on their individual incomes, even before saving a deposit.
Collins stressed he wasn’t “anti-house”, but young people should consider whether locking up savings in property was the best path to true wealth.
He advised them to focus on reducing living costs, like renting a modest property, which can free up capital to invest earlier, and grow their financial strength more effectively for the long term.
