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U.S. Senator Bernie Sanders has long been hailed as a man of the people. So when it came to light that he owns three homes, critics were quick to pounce — hardly a surprise in a time when millions of Americans are struggling to afford just one. (1)
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But the Vermont senator didn’t flinch. He was unapologetic.
“Do I own three residences? Yeah, I do,” Sanders said in an interview with Lex Fridman. (2)
He then laid out the details: “I live here in Burlington, Vermont. We live in a middle-class neighborhood. Nice house. Guess what? I’m a United States senator and I own a home in Washington DC as do most senators — you live there year after year … And guess what? Like many thousands of people in the state of Vermont, I have a summer camp. It’s a nice one on Lake Champlain. That’s it.”
Sanders earns roughly $175,000 a year as a senator, but that’s not how he built his real estate portfolio.
“Now how did I get the money? I wrote two best-selling books, including this book on capitalism. It was [a] New York Times bestseller for a while,” he said.
It’s a far cry from his early years. Sanders recalled he grew up “without money” in a rent-controlled apartment in Brooklyn, New York. But even with financial success, he says money isn’t what drives him.
“I don’t really give a damn about money. I drive a car that’s 11 years old,” he said. “I don’t have a Rolex watch, would not be interested in it.”
What wealth has given him, he explained, is security — not extravagance.
“If somebody in my family gets sick, I don’t have to worry about that. I don’t have to worry about putting food on the table or paying the mortgage. So, that’s what money has done,” he said.
Indeed, in an era when the cost of everything from food to housing to healthcare keeps climbing, being able to cover your financial obligations — and the occasional curveball — can offer real peace of mind.
Of course, most people don’t have a senator’s salary or a New York Times bestseller paying the bills. But that doesn’t mean building financial security is out of reach for ordinary Americans. Here’s a look at two simple ways to build wealth — even without political power or publishing deals.
Read more: I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
Why the wealthy love real estate — and everyday investors can too
Sanders bought three “nice” properties — and he’s far from the only one. Real estate has long been considered one of the most proven and enduring paths to building wealth.
For starters, it’s a time-tested hedge against inflation. As inflation rises, home values tend to increase as well, reflecting higher costs for materials, labor and land. Rental income often follows suit, providing landlords with a stream of income that adjusts with inflation.
Real estate also doesn’t need a roaring market to generate returns. Even during slowdowns, high-quality, essential properties can continue to generate passive income through rent. In other words, the asset can work for you — regardless of broader market conditions.
The best part? While buying a house can be challenging, you no longer need to purchase a property outright to invest in real estate. Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to America’s real estate market.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
“The best thing to do’ — according to Warren Buffett
Real estate isn’t the only way to grow your money. For generations, the stock market has also helped ordinary investors build wealth. By owning shares of high-quality companies, you can benefit from their growth, earn dividends and take advantage of the power of compounding over time.
And you don’t need to be a stock-picking expert to do it. Legendary investor Warren Buffett has long championed a simple, no-fuss strategy for everyday Americans: invest in an S&P 500 index fund.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated. (3)
This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.
With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
Now, if you’ve already identified companies you believe in, one of the easiest ways to invest is by opening a self-directed trading account with SoFi. This DIY approach allows you to invest with no commission fees, plus for a limited time you can get up to $1,000 in stock when you fund a new account.
SoFi is designed to help you learn investing as you go, with real-time investing news, curated content and the data you need to make smart decisions about the stocks that matter most to you.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Newsweek (1); @lexfridman (2); CNBC (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.