“Home Sweet Home” for 20-somethings is often an apartment or a rent house. If purchasing your first home must wait, rest assured there are benefits to renting. Renting can save you money: because you can split the rent and utilities with a roommate; you don’t have to worry about real estate taxes, maintenance or yard work; and rental insurance is fairly inexpensive! And if your rental history is being reported to credit bureaus, you can build credit. That will be a huge plus when you decide to buy your home.
The question of whether to buy or lease also applies to your car. If you buy, monthly payments can be higher, but you own the equity in your vehicle. Which means you can sell it at any time and have the equity – or pay it off and enjoy the money you save each month. If you lease, monthly payments are often lower, and when the lease ends in a few years, you can lease a new car or buy the one you have at its current value. Whether you lease or buy, plan on a payment that allows you to save and spend according to your overall financial goals.