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5 Things You Should Rent Instead of Buy (And 10 Things You Didn’t Know You Could Rent)

5 Things You Should Rent Instead of Buy (And 10 Things You Didn’t Know You Could Rent)

​​I ​know​…ownership is 9/10ths of the law. It’s really nice to know something belongs to you. But does it always make sense? Financially? Not really. In fact, there are many things that you should rent instead of buy. Including some things you didn’t even know you could rent. Obviously there are also things you should buy, so let’s talk about all of it. Let’s start with what you should be renting…

1. Your Home

Rent your house

    Buying a home is part of the “American Dream”. And there is nothing wrong with doing it…sometimes, but many times it doesn’t make sense. You’ve heard that renting is like throwing your money away. You may have heard that your home should be your biggest asset. Fortunately for you, neither one of those things are true. Sure, it’s great to buy your own home. It’s your home. You can feel proud to be a home owner and you can do whatever you will to the house, but wait until the time is right. The are plenty of times when renting makes the most sense. Don’t fall into the trap of thinking that it’s never a good idea. Here are a few times you should consider renting instead of buying:

    1. If you plan to move soon. This is a no-brainer, but it must be said. You aren’t wasting your money by renting, if you’re planning to move soon. It makes sense to rent for now. You can always buy later when you get where you’re going. Renting will be much less stressful for a temporary situation.
    2. If your market is inflated. A little inflation never hurt anybody, but some housing markets are insane. If your living in an area with extremely inflated housing prices, you can expect that bubble to pop eventually and you may be stuck with a mortgage twice the size of your house’s actual value.
    3. If you’re saving to buy a home. Don’t rush into a bad loan because you don’t have enough money for a down-payment. Just because you can find a “no money down” loan, doesn’t mean you should take it. The interest will eat you alive. It’s better to save for a while and make a large down-payment.
    4. If you don’t want to worry. Too often, we get caught up thinking that these decisions are only about the math and we forget that money is an emotional thing. If you don’t want to worry about maintenance or taking care of your own home, it’s perfectly fine to rent. Do what works for you.

    I didn’t cover every single scenario that could possibly exist, but I did cover the most common ones. Just know that renting is an option. You’re not throwing your money away and you can always buy later.

    2. Your Boat

    Rent your boat

      A boat is a sinkhole for maintenance and repair costs. It almost always makes more sense to rent a boat, especially if you’re only using it a few times per year. Paying the docking fees, maintenance costs and repairs will be enough to make you consider renting a boat when you need it. If you do use it more than a few times throughout the year, consider getting together with a few families and co-owning a boat. This is common practice for private jets and yachts, but it’s worth considering for smaller purchases as well, like a pontoon boat or a speed boat. Everyone will benefit from sharing the cost of owning a boat and it will actually get used on more than a few 3 day weekends throughout the year. Exception: If you’re a fisherman (professional or “up-and-coming”), you may want to consider buying a boat. Small fishing boats are affordable and the maintenance costs are reasonable. You could consider this the exception to the rule, but if you aren’t fishing all the time, it could still be better to rent.

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      3. Your Tools

      Rent your tools

        Obviously, if you’re a mechanic or a craftsman, buy tools. For the rest of us, it might make sense to rent them. There is no need to buy a tool for one project if you know you’re never going to use it again, no matter how cool you feel when you show it to your friends. Tools can be a sinkhole for your money, especially if you shop for tools, like you shop for groceries. Before any new tool purchase, you should ask yourself if you really need to buy it or if it would be better to rent it. Renting tools also gives you the option to insure them and not take on the responsibility of worrying about what happens if you forget that you super amazing laser-sight skill saw isn’t supposed to cut through steel. Home Depot and Lowe’s are just a couple of the places that offer tool rental.

        4. Your Entertainment

        Rent your entertainment

          Movies and video games are cheap to rent, but expensive to buy. How often do we buy a movie, only to watch it once? How often do we buy a $60 video game, only to beat it a week later and basically stop playing it? If you plan to watch the movie or play the game all the time, buy it. Otherwise, just rent it. If you must buy movies or video games, check out some Black Friday deals at electronics stores. Just wait for the crowds and the crazies to get their TVs and iPads, then leisurely stroll into the store, several hours later, and take advantage of the cheap movies and games that often get overlooked. But that’s only if you must buy. With places like Game Fly, NetFlix and RedBox, you really should be renting.

          5. Your Sports

          Rent your sports

            From water skis and snowboards to tennis rackets and scuba gear. If you’re not using it all the time, consider renting. I know, your arsenal of sporting gear from every recreational activity ever invented may look cool, but it’s wasting your money. And while it will save you some money, it also won’t clutter your garage and your storage room. Generally when you’re close to the sunny lake or the snowy slopes, you can find a place to rent some gear; however, shop around, because the places right next to all the recreation are usually the most expensive. Just driving a few miles outside of the area could easily save you half (or more) on the price of your sports equipment. Just always be sure to read the policy on “return condition” and what happens if something breaks.

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            Things You Didn’t Know You Could Rent

            OK, I admit, you may have actually know about some of these, but if you knew about all of them, you should really find a hobby. Here are 10 things you may want to consider renting that you probably didn’t know you could…

            1. Dresses

            With sites like Rent the Runway and Lending Luxury, it’s easy and affordable to rent a dress instead of buying it. In those times when you’re only going to wear it once, why let it take up the closet space?

            2. Textbooks

            Go to Book Renter or Chegg to find cheap textbooks for rent. Book Renter even offers free shipping. Renting text books makes sense most of the time, since you’re likely never going to open the book again after your class is over.

            3. Camera Lenses

            Lens Rentals and Borrow Lenses allow you to rent camera lenses. It’s great for one-time needs. You can also use them to try out an expensive lens before you fork over the money.

            4. Parking Spaces

            Just Park lets you search for parking spaces in crowded cities and rent them straight from the site. If you have extra space in a busy city, you may want to consider putting your parking space up for rent.

            5. Caskets

            Yes, you can rent a casket. Funeral homes now provide many options to save people money…this is one of them. How does it work? The body is placed in a simple wooden box, then placed inside a fancy, expensive casket for the funeral. Once the funeral is over, the body is buried in the simple wooden box. Weird? Or convenient? You decide.

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            6. Dogs

            Usually, this is just weird. However, there are time when it makes sense. Borrow My Doggy allows you to rent a dog when you need a companion. If you really need a companion, you may just want to buy a dog, but you do have the option to rent if the need arises. You pay an annual subscription fee to be able to search the list of available dogs and schedule your “Welcome Woof”.

            7. Wives

            This is borderline sexist and technically, you’re not actually “renting a wife”. Rent-A-Wife is a maid service that claims to let you “rent a wife”, but it’s really just a hired hand…that happens to only be women. Yeah, I’m not sure why that’s OK either.

            8. Friends

            This may sound sad at first, but it’s actually a neat idea. Rent a Friend lets you rent someone to attend an event with you, introduce you to new people or just to hangout. It’s different, but now there is a little part of you that wishes you came up with the idea. (It may be a really tiny part of you)

            9. Jeans

            One trend that’s becoming especially popular in Europe, according to The Wall Street Journal, is jean rental. Right now, you can rent jeans on a 12-month lease. You simply put down 20 euros as a deposit and then pay 5 euros a month until your lease is up. Then you can either buy them for an additional 20 euros, exchange them for another pair or simply return them.

            10. Christmas Trees

            If you want a real tree for Christmas, but you don’t want to mess with driving to the farm, chopping it down and loading it on top of your freshly washed SUV, you can just rent one. The Living Christmas Company will let you rent one of their trees and they will deliver it right to your home. The tree remains potted, so you’re required to water and care for it. As long as the tree is still green and healthy when they pick it up, you get your deposit back.

            Things You Should Buy

            Now to steer away from renting wives and caskets. Here’s some less weird stuff. If you see the words “rent-to-own”, you should run away. Don’t do it. Renting to own is a great way to pay at least triple the normal price. Here are 3 things that people often get sucked into renting to own:

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            1. Furniture

            Never rent-to-own furniture. You pay “new” prices, except you keep paying…every month. It’s better to finance new furniture (though that’s not the best idea either) than buying from a rent-to-own store. It’s best to buy slightly used. Let someone else take the massive depreciation that happens in the first few months of owning new furniture.

            2. Washer/Dryer

            Don’t do it. You’re better off shopping in the classifieds or on Craig’s List for a nice used set, rather than paying 10 times the price to rent one. If you must have a brand new set, it’s usually better to just go buy them, but not from a rent-to-own store.

            3. Electronics

            Don’t rent-to-own, just own. Shop around to find the best deals, but renting to own is not the way. On top of the high prices, what happens when that TV or stereo stops working? They aren’t going to pay for it, you are. There are too many great places to buy electronics to settle for renting to own. There are things you should rent and things you should buy, but most importantly, do your research. Figure out which one makes more sense for you and your situation. If you are thinking about buying something, first ask yourself if it could and should be rented.

            Featured photo credit: AngiAesthetic via flickr.com

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            Last Updated on June 25, 2019

            5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

            5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

            Millionaires and billionaires read more than you think. In fact, the likes of Warren Buffet are said to read 1.000 pages a day. As the old saying goes “There’s no smoke without fire”; so, start off with these 5 incredible books!

            1. The 48 Laws of Power

            48-laws-of-power

              “If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.”

              On your journey to becoming a millionaire in your 20’s, there will be many people trying to manipulate you into doing what they want. This international bestseller by Robert Greene is the widely read by those in the entertainment industry because of its dog-eat-dog environment. This book is a must-read for anybody who wants to claim power and keep it. it’s a fun read that tells the story of some of the most powerful people in history.

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              An example of a law of power is: Always say less than necessary.

              • When trying to impress, the more you say the more common you look and less in control.
              • Be vague.
              • Powerful people impress and intimidate by saying less.

              2. Influence: The Psychology of Persuasion

              influence-the-psychology-of-persuasion

                “Often we don’t realize that our attitude toward something has been influenced by the number of times we have been exposed to it in the past.”

                This book explains the core strategies people use to influence others using real world examples. Robert Cialdini’s book goes over human quirks like the need to be consistent, and how you can use that in your marketing strategy to make more money. “People’s ability to understand the factors that affect their behaviour is surprisingly poor,” Cialdini says, “which leads to people making poor decisions without realising why.”

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                Cialdini includes real world examples of why people join cults, buy certain jewellery, or give to charity.

                3. Blue Ocean Strategy

                blue-ocean-strategy

                  “Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.”

                  This book argues that leading companies don’t succeed by battling competitors in “Red Oceans”, but by creating “Blue Oceans” where they have uncontested market space to grow. It goes over case studies like “Cirque Du Soleil” who created a blue ocean by creating a circus platform that didn’t include animals or more than one act on at once but instead, decided to focus on talented performers and music who created a mystical storyline.

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                  4. The Fountainhead

                  the-fountainhead

                    “A man’s spirit is himself. That entity which is his consciousness. To think, to feel, to judge, to act are functions of the ego.”

                    The Fountainhead takes place in the United States, mostly in New York City, during the 1920s and 1930s. Billionaire Mark Cuban named his yacht “Fountainhead” after this book. This classic novel is about the struggles of an innovative architect named Howard Roark and his effort to achieve success on his own terms. Many entrepreneurs are inspired by this book because it depicts how you should be uncompromising when it comes to your vision and your goals. If you follow this way of life, you develop the ability to change the world and creating something unique.

                    5. The Compound Effect

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                    the-compound-effect

                      “Do you know how the casinos make so much money in Vegas? Because they track every table, every winner, every hour. Why do Olympic trainers get paid top dollar? Because they track every workout, every calorie, and every micronutrient for their athletes. All winners are trackers.”

                      This book is by Darren Hardy the CEO of Success Magazine, he goes over how it’s the small, seemingly insignificant choices that compound to create success or failure over time. No one has a plan to be broke and fat but that’s what happens when you don’t have a plan and go along the path of least resistance. Hardy argues that you cannot improve something until you measure it and to always take 100 percent responsibility for everything that happens to you.

                      So, those are five books you must read if you want to give it a try to become a millionaire in your 20’s. What are the best books you have ever read? Leave a comment and share these life-changing books with your friends to help them become successful like you.

                      Featured photo credit: Bill Gates Foundation via businessinsider.com

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