Passionate Pursuit of Purpose

Everybody pays rent (Size Matters)

Posted by on Feb 10, 2013 in Finding Destiny, Personal Finance | 0 comments

I hear your thoughts already; “I live with my parents,“I mooch off of a friend,” “I live with a boyfriend/girlfriend,” or “I own my home.”

A For Rent sign in the window of a residenceFirst lets address the first 3 excuses.  Here are some of the currencies you are paying with:

  • Goodwill (eventually this usually runs out if their isn’t some reciprocation)
  • Chores or other Services (Your currency is barter)
  • Companionship (We are social creatures and many of us don’t like living alone)

What about “I own my home?”

What are the various costs of maintaining and owning your home?

First with a mortgage payment (The principal portion would not be rent, but the interest portion is really rent by another name)

“But I don’t owe anything on my home!”

Rent a homeowner pays:

  • Repairs and upkeep
    •  See how long your home is livable, if you do not replace your roof.
    • Choose not to clean your carpets and see how many friends enjoy being in your home.
    • Size matters (the larger the home the more things have to be maintained)
  • Insurance
    • It is wise to insure something of this much value.
    • Size matters (The larger and more expensive the property is to replace.  The higher your premium will be)
  • Utilities
    • Not applicable to Amish (although the larger the place; the more wood or other heat source has to be used to keep the home warm)
    • Size matters (a larger home requires more energy to heat or cool)
  • Property Taxes
    • Don’t pay these and you will find out who really owns the land.
    • Size matters (the larger and more valuable the property the more you have to pay.

Notice the theme?  Size matters, when you are purchasing a home all of the ancillary costs increase as the size and value of your home

This is not a rant against home ownership.  I hope each of you is on a path to live in a beautiful house, filled with love, peace, and family.

Often times people buy their “dream home“…. Only to be enslaved by the required rent payments.  Let your home be a financial blessing, and not an anchor.  Buy something easily within your means and you will have time and money to enjoy the things money can’t buy.

What percentage of your income goes toward rent? 

What can you do to decrease that percentage?

If you paid less rent could your pursue your dream more easily?