Throwing money away
Was just speaking with a friend the other day, and the old saying came up of “If you’re renting, you’re just throwing your money away.” This has always felt incorrect, but I never really did the math. I now have done it, and if you do, you’ll realize that it comes down to a really basic understanding of what you want in a house, not so much in terms of money being spent. Here’s how it went:
I have very basic parameters to start from. The type of house that I am interested in living in is around $350,000. From there, here are my loose estimates:
Interesting eh. With the new home, I’m spending about a million when all is said and done. So basically, I can “throw” my money away for 30 years, pay the $350,000, and still have a little over $30k for spending money.
This is obviously not a specific study that I’m performing to determine how I’m going to go about my life, but it makes the point that you can’t make your decisions based on money going in the garbage can. Well, maybe you can actually think about the candidates before voting…like our past president…like our current president…Ron Paul?… I digress…
