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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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            Published on November 20, 2018

            The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

            The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

            The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

            Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

            In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

            Why Your Past Prevents You from Saving Money

            Are you constantly thinking about your financial mistakes?

            If so, these thoughts are holding you back from saving.

            I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

            It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

            For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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            How to Effortlessly Track Your Spending

            Stop manually tracking your spending.

            Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

            When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

            Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

            The Truth on Why You Keep Failing

            Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

            Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

            Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

            If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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            Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

            Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

            1. Save more than 50% of your available money (after expenses)
            2. Only buy nice things after saving
            3. Automate your savings with automatic bank transfers

            These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

            How to Foolproof Yourself out of Debt

            Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

            So how can you separate yourself from the 60%?

            By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

            This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

            For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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            Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

            A Proven Formula to Skyrocket Your Savings

            Having proven systems in place to help you save more is important, but they’re not the best way to save money.

            You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

            What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

            Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

            Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

            During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

            Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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            Transform Yourself into a Saving Money Machine

            Saving money isn’t complicated but it’s one of the hardest things you’ll do.

            By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

            The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

            Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

            Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

            What are you waiting for? Go and start saving money, the sky is your limit.

            Featured photo credit: rawpixel via unsplash.com

            Reference

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