This is difficult to explain. I can’t figure out a rule of thumb for spending, the prices of things fluctuate so quickly it’s confusing. Here are some examples
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A house, prices are out of control, inventory is low, sellers are greedy. I’m feeling not only unable to afford it but finding lack of value in inflated prices
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Computer parts. Relatively cheap compared to pandemic but more expensive than before but also much cheaper than 90s/00s, but still could be cheaper
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TWS earbuds, completely different ball game from regular earbuds, disposable electronics.
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Food. Nights out with drinks now sometimes cost me more than 2 & 3, but seem like just keeping up with inflation
The prices range from 100,000s to 100s, but some are fleeting, some semi permanent, some last a long time. I also spend hours researching prices of parts and waiting for sales, but spending the same amount on social events in an instant
A major thing to consider is that you’re building equity in the house. If you’ve paid a year of rent, you don’t have anything to show for it at the end. You’ve just helped the landlord pay off their loan. On the other hand, if you’ve paid a year of your own house payments, that money has gone towards your loan and you’d get more money back when you sell the house.
If you’re comparing renting vs buying, you need to consider growth in value of the house and increase in property tax (for buying), and average yearly rent increases (for renting).
Owning a house can be stressful with all the things you need to do, but it’s also really nice being able to do anything you want with it, and not have to deal with landlord-quality “fixes” when things break.
Absolutely all true. Although I did say Everything else included. While yes you are building equity… If at the end of your ability to live alone, you have spent more by owning then renting (read this as significantly more) then it might have been wiser to have rented and invested the difference. Again people have to look at ALL the options.