Is Rent Money Dead Money?

Whether it's your parents or your grandparents that so desperately want you to get a move on with your life, chances are you've been told that rent is the worst way you could lose money. And what we like to call this concept in the alright-thank-you-boomer-for-your-advice biz is dead money.

In this day and age where housing prices are literally astronomical and with 32% of Australia’s population renting according to the Australian Institute of Health and Welfare, is it really fair to say rent money is dead money?

If you're after a short answer, here's a sweet one: no!

Either way, we need the basic necessities in life - food, shelter, clothing and how we differentiate our spending on each of them is entirely up to you. But also, boomers do be making some points with being a bit smarter with our money and renting - take this absolute mess for example. 

1. It’s an investment in your lifestyle

Let’s start with the idea that it is an investment in your life. Either way, you need to put a roof over your head and wherever you choose that to be is up to you. No matter whether it’s a short or long-term decision, you’re making a decision that'll benefit you.

Whether living by the beach is your jam or being closer to work to make your day-to-day life a lot easier - it’s a lifestyle choice and it actually depends on what you value. No matter how much you’re spending on rent, you know you’re sacrificing a percentage of your pay to live comfortably. So, you do you and hopefully that brings you joy (cheers, Marie Kondo). 

Some people spend thousands on luxury goods whereas others will only spend ten dollars on a new pair of shoes - whichever way you go, your values are important to you and it’s the same deal with rent!

2. Your goals are different to others

While we can’t have it all, we can set personal goals to get us there. Whether that is saving up for a house deposit, getting your small biz side hustle off the ground or lowering your expenses to afford that champagne lifestyle on a lemonade budget, that’ll all depend on how much you spend on rent. 

If you’re living in a sharehouse with three other mates out in the suburbs, you’re more likely to save a lot more money compared to if you lived in the CBD of a city. It all depends on how much you want to save and what your expenses are. If you can cut either of them down at no sacrifice of your happiness then… good on ya! But just remember that your goals will never be replicated to the next person, so try not to compare your situation to others and just aim to live your best life (even if that means blowing all your money on the weekend, this is a no judgment zone).

3. Sometimes, there are no other options than to rent

Some situations are out of our control - we need a roof over our head and sometimes, we need to pay for that all on our own (we see you, and we hope you're okay).

If it's not feasible to live with your parents, don’t put yourself through it. Maybe you want a fresh start, a bit of independence or a seachange -  there is no reason or justification too small to explain why you rent. Whether you’re still saving money on the side, trying to get out of renting or struggling to make ends meet, there's no judgment, dude.

The narrative does need to change on how we talk about renting and leasing. There’s not that much of a difference between paying rent and paying interest on a home or car loan. We’ve gone into our young adult lives working casual and full-time jobs, being told that we spend too much of our money on avocado toast and we travel too much (sorry but damn, we're living). But before we know it, we’re already set up for failure in a market that’ll never go down. 

But if you are contemplating renting - stress less, figure out what fulfils your life, set some goals, save some bond money and plan for your future!