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Life is Too Short To Rent

Here's an example of how paying $1,500 a month in rent will result in throwing away $45,000 a year:

Renting…
Gross income for the year. $75,000
Puts you in a 37% tax bracket (federal and state combined) 75000 x 37% = $27,750
Rent is $1500 a month. 1500 x 12 = $18,000
61% of your income is being thrown out the window!!! $45,750

However, if you own a home with a payment of $2500 a month, let's look at the numbers...

Owning…
Gross income for the year. $75,000
Mortgage interest for the year. 12 x 2500 = $30,000
Taxable income for the year. $45,000
Puts you in a 33% tax bracket (federal and state combined) 45000 x 33% = $14,850

There is no way to beat the system, but this is how the system can work for you!!!

Tax money now going toward your future! $12,900
Rent money now going towards equity! $18,000
Owning instantly puts all this money that you were throwing out the window towards your future! With out effecting your life style at all. $30,900

By Diane Tuman

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  • Last edited October 12 2012
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