In Part 1 and Part 2 of this article series we looked at some of the financial and non-financial considerations for buying versus renting a home. In this Part 3, we wanted to explore the generally stated concept that renters are worse off than homeowners. Is this automatically the case? To begin, let’s make a few assumptions: We have two individuals, one who wishes to buy, while the other wishes to rent Both have the same financial resources
You just got married; the honeymoon’s over; a lot is changing quickly; and many things are competing for your attention, including your new spouse. While you hope romance will be foremost, Life will inevitably take on greater importance, with no greater reality than the major way money will impact your life. To help your prepare, let’s highlight some of the more important financial issues that you’ll likely face. As a reminder, we covered two aspects of Couples Finances in other
In Part 1 of this article series we looked at some of the general points about buying versus renting a home. If, however, we wanted to look at it from a strictly financial perspective, how could this be approached? Metrics We try to use two metrics when trying to assess if rental rates or house prices are reasonable, which can therefore help when deciding whether renting or buying is more beneficial. The major problem with trying to
Deciding whether to buy or rent a home is a big decision, and we’re sure you’ve heard that renting is throwing money away, or some variation of this statement (e.g. when you rent you are only paying the landlord’s mortgage). In this three-article series we’ll examine various aspects of buying versus renting. You’ll discover the “right” answer would vary by personal preference and a mix of financial and emotional arguments. Firstly, let’s explore some of the general
Getting married is one of the most exciting decisions you’ll probably ever make. For both bride and groom, planning a wedding can be an emotional roller coaster – on one hand, you’re filled with euphoria, and on the other, you feel stressed from the countless decisions to be made. In addition, as with most important life events, planning a wedding can be a source of financial stress because you have to balance your wedding dreams
In Part 1 of this post we identified several points that you should consider when buying a car. In this Part 2, we’ll consider the costs involved and the impact on your budget. Creeping cost base increase Before starting, we should make a general point about your targeted level of savings. One of our Cari$ Rules for Financial Freedom is to live on approximately 70% of your means, or put another way, live on 70% of your
Owning your first car is a thrilling experience; as a matter of fact, your pulse races every time you own a different car! Probably the freedom a car represents is intoxicating. But after the euphoria, we know several people who get a twinge of buyer’s remorse because of unexpected costs that pop up. An improperly evaluated decision can therefore have financial consequences for a number of years. In reality, buying a car is a complicated
In the previous article, Couples Finances: Long-term Relationships, we explained the importance of having a pre-marriage financial conversation in order for both persons to understand each other’s financial health, philosophies, and goals, as well to obtain agreement on certain key decisions. As a reminder, we view a long-term relationship as a commitment to share your life with someone, whether formally or informally. But to keep the description simple, we just refer to both these arrangements broadly as “marriage”.