Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - 2012 vs 1984: Young adults really do have it harder today

Itse · 05-11-2012, 07:32 AM

We recently made a decision about buying vs. renting. I inherited some money and needed to figure out what to do with it.

I'll just put this here as an example of how on occasion these decisions are about a lot more than "how do you end up with most money".

Option #1: Buy, keep my job as a taxi driver (or equivalent) to pay the mortgage.
Option #2: Rent and re-start my studies at the U. (Invest the money, spend it slowly.)
Option #3: Rent and start a pub. (Or a hostel. Not sure if that idea was viable though.)

We went with option #2, even though it's the least likely to make financial sense in the long term (given my age, field of study and loss of income during studies) and involved the most risk.

Here's a rundown on some of the factors involved:
- We now have "money in the bank" instead of a mortgage. This is nice in an unstable time.
- My wife is working on her thesis. She makes almost nothing now, but might make a very nice salary soonish. She might also want to or have to go work abroad, or in another city.
- Her thesis was not going great. I now do most of the housework and her thesis is actually moving forward as she can put in the long hours.
- Our kid is five. This gives me a lot of time to be with her. She won't be that interested in my company in a couple more years.
- If I do graduate this time (not guaranteed), the variety of jobs I'll be qualified for will have increased a hundredfold, giving us propably more stability in the future.

So not really here nor there on the "which is more reasonable financially", just felt like mentioning that renting vs. buying can affect a persons life in many ways.

Basicly, money is very much about time and options. If more of your money is tied to a house, it limits your options in life right now.

And of course being more wealthy later in life gives you (or your kids) more options then.

05-11-2012, 07:32 AM	#106
Itse Franchise Player Join Date: May 2004 Location: Helsinki, Finland Exp:	We recently made a decision about buying vs. renting. I inherited some money and needed to figure out what to do with it. I'll just put this here as an example of how on occasion these decisions are about a lot more than "how do you end up with most money". Option #1: Buy, keep my job as a taxi driver (or equivalent) to pay the mortgage. Option #2: Rent and re-start my studies at the U. (Invest the money, spend it slowly.) Option #3: Rent and start a pub. (Or a hostel. Not sure if that idea was viable though.) We went with option #2, even though it's the least likely to make financial sense in the long term (given my age, field of study and loss of income during studies) and involved the most risk. Here's a rundown on some of the factors involved: - We now have "money in the bank" instead of a mortgage. This is nice in an unstable time. - My wife is working on her thesis. She makes almost nothing now, but might make a very nice salary soonish. She might also want to or have to go work abroad, or in another city. - Her thesis was not going great. I now do most of the housework and her thesis is actually moving forward as she can put in the long hours. - Our kid is five. This gives me a lot of time to be with her. She won't be that interested in my company in a couple more years. - If I do graduate this time (not guaranteed), the variety of jobs I'll be qualified for will have increased a hundredfold, giving us propably more stability in the future. So not really here nor there on the "which is more reasonable financially", just felt like mentioning that renting vs. buying can affect a persons life in many ways. Basicly, money is very much about time and options. If more of your money is tied to a house, it limits your options in life right now. And of course being more wealthy later in life gives you (or your kids) more options then.