Would buying a home help free you from expensive housing costs? Probably not. Owning a home has its fair share of money being “thrown away”. Because most of your monthly cost isn’t actually going towards building wealth. It’s going to totally sunk costs, like interest, property tax, maintenance, etc.
So what do you do about these rent increases? Focus on what you can control. Work on increasing your income by getting a raise, switching jobs, or getting a side hustle. Live in a cheaper city if it makes sense. Or live in a smaller space (minimalism amirite). Don’t become house poor by renting or buying something that you can’t afford. If you spend less than you make and invest the difference, you will build wealth and get ahead whether you buy or rent.
And by the way, “SD” is San Diego, not South Dakota! It didn’t fit!
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
