You're Not a Failure if You Don't Own a Home
Homeownership has long been seen as the pinnacle of financial success, but the truth is, renting can be just as smart (if not smarter) depending on your personal circumstances. Let’s break down the rent vs. buy debate, dispel the myth that homeownership is the only path to success, and explore ways to make housing work for you, whatever your situation may be.
Rent vs. Buy: What’s the Right Move for You?
There are plenty of online calculators that can help you analyze whether renting or buying makes more sense for you, but the decision isn’t just about the numbers. Here are a few key factors to consider:
Upfront Costs: Buying a home requires a down payment, closing costs, and ongoing maintenance. Renting usually just requires a security deposit and monthly rent.
Flexibility vs. Stability: If you value the ability to move frequently or aren’t sure where you want to settle down, renting provides more freedom.
Hidden Costs of Homeownership: Owning a home comes with property taxes, insurance, maintenance, HOA fees, and unexpected repairs. Renting often includes these costs in a predictable monthly payment.
Investment Opportunity Costs: Tying up your money in a home means it’s not being invested elsewhere. Depending on market conditions, you might get a better return investing in index funds rather than real estate.
A Fancy House Doesn’t Mean Someone Is Rich
It’s easy to look at someone with a big home and assume they’ve ‘made it.’ But what you don’t see is their financial situation behind the scenes. A large house often comes with a large mortgage, property taxes, and maintenance costs.
Someone renting a modest apartment with a fully funded retirement account and no debt could be in a much stronger financial position than someone struggling to make their mortgage payments. Wealth isn’t about what you own — it’s about financial security and freedom.
Live Within Your Means & Find Gratitude in Your Home
Whether you rent or own, what truly matters is living in a space that supports your happiness, financial health, and overall well-being. Feeling pressure to “keep up” by buying a home before you’re ready can lead to stress, financial strain, and regret.
If homeownership is your goal, take the time to save, analyze the decision, and move forward at your own pace. Avoid rushing into a mortgage that stretches you too thin — housing stress can take a toll on your mental and financial well-being.
Using Your Home as an Investment
If you do decide to buy, consider creative ways to turn your home into a financial asset rather than a liability:
House Hacking: Rent out a room or part of your home to offset mortgage costs.
Airbnb Hosting: If allowed, renting a portion of your home short-term can bring in extra income.
Multi-Unit Properties: Buying a duplex or triplex and renting out units can help you build wealth while keeping housing costs low.
Your Path, Your Timeline
At the end of the day, homeownership is a personal choice, not a requirement for financial success. Renting doesn’t mean you’re behind, and owning doesn’t automatically mean you’re winning. What matters is finding a living situation that aligns with your financial goals and lifestyle.
So, if you’re renting, embrace it. If you want to own, make a plan. There is no one-size-fits-all answer — just the path that works best for you.
Want to dive deeper? Check out our video here where we walk through a rent vs. buy calculator!
If you’re saving for a home, download our free personal finance tracker to support your journey. Always cheering you on!