What's the Difference?

Dear Dave, I've heard you say that it's really bad to lease a car, but then sometimes you talk about renting a house or apartment as a good thing. How can it be good to rent your home with a lower payment but not a car? Corey Dear Corey, You're confusing a temporary situation with a permanent one. People lease cars with a permanent mindset. Car payments are just a way of life for most middle-class people who have resigned themselves to never getting anywhere financially. My goal is to try and get people to reverse that mindset, because it's virtually impossible to get rich and build wealth while you've got car payments hanging over your head. Now, let's make sure you understand where I'm coming from. I don't recommend that people lease a house or live in an apartment their entire lives. I've never said that. But sometimes - if you're in a big enough mess - it's a good idea to step back and be a renter for a short period of time so you can get your finances back on solid ground. Great question, Corey! Dave
Comments and feedback can be sent to feedback@ldsliving.com