A Simple Rule That Could Save You Thousands

Limit your risk when possible (and it often is) on major purchases.

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Here is a truly great money-saving tip. Really. One that we all recognize makes sense, but yet usually don’t follow. Hopefully this little reminder can change that. Many times when you’re considering a major expenditure, it’s best to rent first before buying. To test the waters. To dip your toe in before taking the plunge,

the expensive plunge. Examples, Dave? Well, I have a few that I’m confident can drive this point home and make you think differently going forward. Your child decides to take up the drums. Uh oh. Lots of noise, lots of dollars. But will they stick with it? Will you be able to take it? Let’s rent. Limit our risk. Not get snared.

Sorry, snared, weak. What about a trailer or a motor home? Way better to rent first. Amazing how many people I’ve known who have bought one and used it much less than they thought they would. Or stressed about pulling it or driving it. Then sold it at a big loss. Seriously, hear that a lot. Speaking of using something way less than buyers thought they would:

Boats! Speaking of a purchase costing a lot more over the long term than people estimated initially: Boats! Speaking of for sure renting before buying: Boats! Okay, one more quickly: We’re seeing a fair number of people decide to make the “big move” in retirement. Sell everything and escape to a far-off country.

Careful! The “return rate” is really high. Just because you’ve loved a spot on vacations, doesn’t mean you’ll love living there. It takes time to establish whether a place is truly a good match. And for that matter, whether you’re truly ready to leave your world behind. Rent for four(ish) months first. Get the lay of the land.

Oh, and don’t buy a boat when you first get there.