Money guru and bestselling author Ramit Sethi has shut down claims that renting property is a "waste of money," insisting that -- for some -- it can actually be a much more financially savvy approach than purchasing a home.

Sethi, who is also the host of the hit Netflix series, "How to Get Rich," lays bare his take on renting versus buying in a new episode of Steven Bartlett's popular podcast, "Diary of a CEO," explaining to listeners exactly why they should be more "sophisticated" when they think about stepping onto the property ladder.

"Renting is not throwing away money," he insists when Bartlett points out that many people -- particularly young couples -- believe that buying a home and securing a property "asset" makes more sense than shelling out thousands of dollars a month on a house they don't own, particularly if their mortgage payments will cost about the same amount.

Explaining his argument, Sethi compares renting a home to eating out, saying: "It's just like going to a sushi restaurant is not throwing money away on sushi. You're paying for something, you're getting value. It's fantastic."

As for the argument that renting a home equates to simply "paying your landlord's mortgage," Sethi has an answer for that, too.

TLDR: It's not the case.

"Aren't you paying the sushi [restaurant] owner's mortgage when you go there and get sushi?" he asks. "Funny. We never think about it like that. We only think about paying the landlord's mortgage."

Sethi notes that he is not against people buying homes -- quite the opposite, in fact -- but he argues that homebuyers oftentimes fail to consider the hidden costs that come with home ownership.

Instead, they simply look at the cost of a mortgage versus their rent payments. It's a mindset that can leave them in a financial hole later down the line, even if they manage to secure a piece of property.

He also calls attention to the fact that there are ways to build wealth and make good investments while renting a home, provided you are paying for a property that is well within your budget.

How do you do that? Rent a home and invest the money that you are left with.

"We have to understand that buying a house can be a good financial decision; it can be, but renting and investing the difference can also be a good decision," he insists. "And right now, in the U.S., in the top 50 U.S. metro cities, it is cheaper to rent than to buy."

Looking back to the time he spent living in New York, Sethi explains his theory, telling Bartlett: "Let me give you some math. Let's say you live in New York. If the rent was 3,000 bucks a month, to own the equivalent property right next door would've been $6,600 a month. That's $3,600 per month more just to own."

The reason for this price difference? Those "phantom" costs that people so often forget to factor into their homebuying decision.

"Most people don't know this!" Sethi says. "They don't factor in phantom costs like maintenance, taxes, transaction, opportunity costs. They simply look at a number that says whatever, and they go, 'Great investment.'"

While Sethi does not want to dissuade people from buying homes, he notes that people must be more "sophisticated" when it comes to their approach to making "the biggest purchase of our lives."

In fact, he explains that making any major investment should come with a host of considerations -- starting with the financial implications, but then broadening out to take in lifestyle impact, psychological concerns, and any other "non-financial" reasons for the purchase.

"We have to remember that life is not just about a spreadsheet," he says. "So when it comes to a major purchase, like a house or a car, we gotta start with the numbers. We have to start by running a buy versus rent calculation, by running an amortization [debt repayment] chart."

After those financial considerations have been weighed, Sethi says you should ask yourself several questions: "Can we afford it? Is this part of our rich life vision? What if one of us loses our job? And so on and so on."

Then comes time to ask yourself a more existential question: What kind of lifestyle do you want?

Whether you're an avid decorator whose life will feel more complete with a home to renovate, or if you want to settle down in an area where you can raise your kids, you might be in the right place to buy.

"My main argument is this: Most of us never run the numbers," he concludes. "We will spend $1 million in total cost of ownership for a house, and we won't run one calculation. So we have to pay multiple notes, doing the financial and the non-financial parts."

Bartlett also explains that many people believe buying a home is a must-do step as far as "growing up" is concerned -- and that it has been hammered into most people that they should or will buy property when they become an "adult."

Regardless of whether you end up buying a home, Sethi urges everyone to be more mindful about their investments, noting that this is an area that most adults "neglect," even though this is where most people are able to "create real wealth."

He suggests that between 5% and 10% of your monthly income should be invested, adding that there is no such thing as trying and failing to save money.

"This is where couples neglect," he notes. "They talk about saving and they'll say, 'Oh we try to save.' I don't try to brush my teeth, I don't try to save, I make it automatic. That's what I want couples to do."