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

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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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            Kalen Bruce

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            Last Updated on July 20, 2021

            Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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            Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

            Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

            Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

            Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

            In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

            Break Free of Your Finances

            Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

            When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

            Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

            Though it seems hard to believe, it is really very simple to get financial freedom.

            To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

            While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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            Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

            1. Stop Unnecessary Spending

            We often spend money inwardly, instead of objectively.

            For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

            To stop this habitual spending, log down all your spending over the course of a month.

            Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

            This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

            2. Plan a Monthly Budget

            This is a great opportunity to get serious.

            Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

            Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

            3. Cut-up Credit Cards

            Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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            If not, you may want to consider ridding your life of the burden that credit cards bring.

            Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

            Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

            4. Increase Savings

            There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

            It’s good practice to save up to 15% of your income.

            Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

            Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

            5. Invest Wisely

            Consider investing in funds.

            Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

            To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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            Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

            6. Invest in Gold

            There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

            You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

            Another way to invest in gold is through ETFs (Exchange Traded Funds).

            These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

            With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

            7. Stash Emergency Funds

            Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

            If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

            Make it hard to get your cash.

            Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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            8. Find Fabulous Mentors

            Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

            If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

            There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

            9. Be Extra Patient

            Patience is the key of financial success.

            Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

            So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

            Financial Freedom for All

            Anyone can achieve financial freedom, regardless of their financial circumstance.

            Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

            Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

            Featured photo credit: rawpixel via unsplash.com

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            Reference

            [1] Hartford Gold Group: IRA Retirement Accounts

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