Owning vs Renting with Sam Cash
We only have three months left of the podcast, and I don’t know about you, but time seems to be moving very fast lately. This month, I’ve got a mixed bag of topics to talk to you about, and I’m tagging in my amazing training team at Financial Gym to help me Gymsplain some of these topics and also give perspective on what they see daily from clients. In the first two episodes of this month, I’m talking about home ownership.
I always say that it’s expensive to get into a home, and it’s expensive to get out of a home. Given how expensive it is these days, it’s a decision not to be taken lightly, and honestly, it’s a decision that is becoming less and less important for many of the clients we see. Joining me today is Financial Gym trainer and previous podcast guest Sam Cash, to talk with me about whether to rent or own. We’re going to talk about how false narratives lead us to make poor choices where this is concerned and why renting does not mean you’re throwing your money away.
What are we drinking?
Sam – Chocolate, banana, & PB smoothie. Electrolyte water.
Shannon – Homemade sparkling water
Podcast Notes
Renting vs. Owning
The episode's topic, renting vs. owning, is a common conversation at The Gym between clients and Trainers. Homeownership is one of the biggest financial goals people commonly set. There are many steps to get there, as well as maintenance once you’ve arrived.
Shannon encourages everyone who wants to purchase a home to think about why. Some people think they have to own a home without ever asking themselves if it’s what they really want. Clients often struggle to enjoy homeownership if they don’t have a strong connection to that goal.
Renting and owning both have benefits and drawbacks. One is not necessarily better than the other. Which option is best truly depends on what is important to you and your lifestyle. Renting is not throwing money away, and owning a home isn’t always profitable.
If your goal truly is homeownership, you can absolutely make it happen. Owning a home can be an asset, but it can also be a liability. If you don’t want to own a home, there are other ways to build wealth.
Preparing Financially
Buying a home requires a chunk of money upfront, including a down payment, closing costs, inspections, and realtor fees. Saving the down payment is the most challenging step for most people. Once you’re in the home, the first year will likely require repairs or fixes.
If you want to move to a new place, renting in the area can be a great option to start. This allows you to learn about the area while searching for places you may want to purchase. If you have young kids in school, this can be a way to try different districts before committing.
Once the home is purchased, it will need furnished, which is another cost to plan for. Things will inevitably need to be painted, fixed, and replaced. You are responsible for everything that happens and is related to the home.
When you buy a home, it takes about seven years to truly start building equity. Buying a home is a better investment if you plan to stay a long time. Renting can be a strategic choice, especially if you’re saving and investing while renting.
Final Thoughts
If you don't want to buy a home, you don’t have to! There are benefits to renting and buying, and it’s about choosing what is best for your goals and financial health. Renting offers flexibility and can be a fantastic long-term option for many.
Owning a home has more costs than paying your mortgage each month. It’s important to understand these realities and plan for them before making the purchase.
Everything you do financially is fixable. If you’ve purchased a home and no longer want to be a homeowner, you can always change your mind. Don’t let the sunk cost fallacy keep you in a place if it no longer serves you.
If you’re not sure whether you should rent or buy, a Financial Trainer can run the numbers and lay them out for you, which can be very clarifying. There are also ‘Rent vs. Buy’ calculators online, which can be a great tool!
Takeaway: My biggest takeaway is the importance of understanding your “why” of home ownership. If it’s not something that truly resonates with you, then don’t listen to what other people are saying. Save yourself the cost and the headache and feel confident in your renting decision.
Resources Mentioned:
Random Three Questions
Where do you see yourself owning your next property?
What is something you’re currently binging?
If you were given $20k for travel, where would you go?
Connect with Sam
Sam Cash, Certified Financial Trainer
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
As many of you know, other than running this podcast, I’m the founder and CEO of The Financial Gym, and we are celebrating 10 years of this journey. Now more than ever, I see the importance of the work we do every single day. Rising inflation, the return on student loan debt, high-interest rates on loans and mortgages, and volatile stock markets make it a time where, now more than ever, you need a best financial friend to help you make the best choices along the way.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and Retirement. As a reminder, we work with individuals, couples, or business owners.
The exciting news of 2024 is that Financial Gym now has a sister company, FG Advisory Services, available for people looking for more traditional financial advisory services like asset management delivered by a team that looks and behaves nothing like a traditional financial advisory services company. We literally have a solution for you, no matter where you’re starting from. So what are you waiting for? Head over to or send friends to financialgym.com to get started today. Our warm-up calls are free of cost and judgment, so you have nothing to lose.