We’re rather radical when it comes to finances. We live on a cash budget, we don’t have credit cards or debt, we just finished up saving up to pay cash for our first home—oh, and we’ve also rented our entire marriage—all seven years of it so far!
Now, let me reassure you that I’m not here to make the case that everyone should rent, or that you should only buy a house if you can pay 100 percent down. Our circumstances were unique: We had a really good head start—we went into marriage without debt, and we also had all the money saved up to pay cash for law school. Because of these factors and the good income we now have, we have been able to live on significantly less than we make, which has allowed us to save enough to pay cash for our first home.
While I don’t expect many people to follow in our exact footsteps, I do think renting gets a bad rap. In fact, I’m going to make a counterintuitive statement: I think renting can be a really wise choice for some situations.
Read the full article.
Note: This article was written a few months before we bought our house. Also, I just thought I should clarify that I had committed to writing three articles for Currency.com months ago — and just found out a few weeks ago, to my dismay, that this new financial site was going to be sponsored by American Express.
I would not have written the articles for them had I known of the AMEX sponsorship, as that would be a conflict of interest for me as I do not support or encourage the use of credit cards. However, the articles were already written and slated for publication so I wanted to share this one with you as I’m often asked whether I believe renting or buying is a better option.
photo by ASurroca