Rent vs buy: Financial planning problems that may or may not have straightforward solutions

First Published Sep 19, 2020, 2:35 PM IST

Most people find themselves confused when it comes to financial planning. Today, we help you in looking at what you should think about before making decisions on finances

Rent vs Buy:

Most people believe that it is better off to buy a house than rent it. However, in some cases it makes more financial sense to rent than to buy because you won’t be tied down in paying off your home loans over the next 20 years.

Joint or separate finances:

One of the most common arguments between couples is over finances, especially in early stages of a serious relationship. Thus, it is important to know your partner’s financial status. Most couples are divided between keeping a separate or joint account. It eventually boils down to what the couples want. But no matter the course eventually taken, do not keep your finances a secret. Most end up having an individual as well as a joint checking account.

Several credit cards on hand:

This is actually a smart move. Having multiple cards on hand influences you to have a better credit score. As long as you end up paying your monthly credit card expenses, this is a good move.

Pay your debts off:

While that may be a no-brainer, the idea is to pay off those debts that have a higher interest rate and work your way down. However, that may not be true in everyone’s case. So whatever debt you have, start paying it off ASAP. If it’s a small amount do so, this will give you the confidence to move forward with other payments. Your debt will only build up if you choose to put it off for later.