EP. 102 Is Renting Throwing Money Away?

 
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In this episode, I'm breaking down all of our family's numbers for our old mortgage, our current rental, and our future custom home. Plus I'll explain how math backs me up on the argument that renting isn't always "throwing money away". Join me for this much-debated conversation.

IN THIS EPISODE, SAMI SHARES ABOUT:

  • All of the real numbers for…

    • Old mortgage payment⁠

    • Current rental⁠

    • Land

    • Future custom home

Numbers breakdown

BUILDING OUR CUSTOM HOUSE

  • Land $120k +  House $280K -$12k (10% of land) = Loan for $388k with 4.5%

  • 4.5% 30 YEARS = $1,965

  • PAYMENT / PRINCIPAL / INTEREST
    $708,113.17 / $388,000.00 / $320,113.17

  • $1,965/month payment (30 years)
    $100/month insurance
    $3,000/year property taxes
    =$27,780/year

  • 30 YEARS: $388k PRINCIPAL + $320k INTEREST + $36k INSURANCE + $90k TAXES = $834K (not including repairs + maintenance)

RENTING OUR CURRENT HOUSE

  • $600/month rent
    $175/month storage
    $20/month insurance
    =$9,540/year

  • 30 YEARS: $286k

CUSTOM HOME VS. RENTAL

  • $18,240 MORE /year towards housing OR $1,520/month

  • “Wasting” $446k BUYING vs. “wasting” $286k RENTING

  • $160k over 30 years

  • Taking the extra $1,520/ month and investing it…

    • Invested in Savings Account 1% x 30 years = $637,379.21
      OR

    • Invested in 401k or IRA 8% x 30 years = $2,140,996.89

RESOURCES MENTIONED:

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Is renting throwing money away? | a sunny side up life podcast | sami womack | wasting money | dave ramsey | real estate | rental property | home ownership | budgeting | budget | family | buying a house
 
Is renting wasting money? | a sunny side up life podcast | sami womack | throwing money away | dave ramsey | real estate | rental property | home ownership | budgeting | budget | family | buying a house
 
 

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Sami Womack is the brains behind A Sunny Side Up Life. Her weekly chart-topping podcast has been downloaded over 100,000 times. When she’s not downing caramel coffee and rocking a little girl on her hip (literally), she’s creating content, collaborating with finance/minimalist organizations, and inspiring women all over the world to live an intentional life.

She began this journey with her high school sweetheart, Daniel, and a debt price tag of $490,000. They both took control of their family’s finances by downsizing, budgeting, and changing habits. From this experience, A Sunny Side Up Life was born.

Today, Sami owns this business helping women get through dark times and experience the life-altering magic of intentional living.

She offers a jump start into money mindset with the FREE Magic + Money Course + a full budgeting experience with Your Sunny Money Method.

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