“Home ownership is an excellent path to build wealth.”

If your goal is to build wealth, you will be much better off investing your money in the stock market than buying a home. While both stocks and housing are cyclical markets, long-term historic trends show that housing appreciates at a rate barely above inflation, while stocks tend to return an inflation-adjusted 7-10%. 

In our hypothetical scenario, a renter who invested in the stock market with the $85,000 down payment plus the monthly difference between the $1,515 rent and the $2,690 home-buying costs would be over $500,000 better off after 30 years than the homebuyer, assuming 4% average appreciation.

An important thing to consider is that home prices in the United States are just now beginning to correct from an enormous unprecedented run-up in recent years. Despite what those in the business of selling real estate may insist, the correction in housing is still in the early stages. Four percent is most likely overly optimistic for most areas in the next 5-10 years. The only thing we know for sure is that double-digit gains are gone and won’t be coming back any time soon.

Also keep in mind — I mentioned it above but it bears repeating — in order to cash in on any “wealth” you build through your home you will need to sell that home and move. No, “extracting equity” does not count, since that simply results in a larger debt. Debt is not equal to Wealth.

“If you rent, you’re throwing away your money.”

Common knowledge says that despite today’s large premium, buying a home is a “good investment”. Hey, at least you’re not “throwing away” your money, right? True, the renter in our scenario spends $1,515 every month that they will never see again. I wouldn’t exactly say it has been “thrown away” any more than money spent on any other good or service is “thrown away,” but granted, there is zero financial return on that money.

However, when you take a look at the breakdown of the homebuyer’s monthly expenses, a large amount is money that will never return, either. Insurance, property tax (less tax savings), and maintenance, add up to $517 every month that is being “thrown away.” Even worse is the amount spent on mortgage interest. Consider how much of a mortgage payment is applied toward loan interest throughout the life of a 30-year fixed loan:

Years	% toward interest
0-5	~80%
6-10	~70%
11-15	~60%
16-20	~50%
21-25	~35%
26-30	~10%

In the first five years, approximately 80% of the mortgage payment goes toward interest. That’s an additional $1,674, for a total of $2,191 being “thrown away” every single month by the homebuyer for the first five years. Ouch! In fact, not until the homebuyer has been paying down the mortgage for over 20 years will the amount they are “throwing away” be less than the renter.

Renting VS Buying

You’ve probably heard statements like these plenty of times. On television, radio, the internet, and in casual conversation. Such sentiments are common in any discussion that involves home-buying and personal finances. It’s common knowledge that buying a home is a better financial move than renting. After all, you’re building equity instead of throwing away your money, right? Well, maybe not quite… Rather than assuming the “common knowledge” on this subject is accurate, let’s take a look for ourselves at some of the financial differences between renting and home-buying.

A Real-World Example
For the purpose of comparing renting to owning in this article, I’ll be using real-world data gathered. Although most first-time buyers tend to move from renting an apartment to buying a larger, stand-alone house, as much as I can I will compare apples to apples.

• For rent, I located a 3-bed, 2.5-bath, 1,840 sqft house with an attached 2-car garage, on 0.2 acres. Monthly price: $1,495.
• For purchase I found a 3-bed, 2.5-bath, 1,850 sqft house with an attached 2-car garage, on 0.22 acres. Price: $424,950.

The two homes are located within two miles of each other in similar neighborhoods, and neither is located on a busy road. We’ll assume that our hypothetical homebuyer is a married couple with $85,000 in the bank to make a 20% down payment. To calculate mortgage payments we will use a recent 30-year fixed interest rate of 6.25%.

Let’s look at how the monthly costs break down (approximately) for our hypothetical potential first-time homebuyer:

	Renting	Buying
Rent/Mortgage:	$1,495	$2,093
Insurance:	$20	$163
Property Tax:	-	$407
Tax Savings*:	-	($327)
Maintenance:	-	$354
Total:	$1,515	$2,690

*: (less standard deduction)

Right off the bat, you see that simply trading straight across from renting to owning results in a 78% more expensive monthly bill. That’s not exactly chump change. With even a slight upgrade from renting to buying (which most first-time buyers are prone to do), you can easily see how the total monthly costs would be more than double.

Advantages of Renting a Home Instead of Owning

Owning a Home is Expensive

Forget about the line from real estate agents about a home being a great investment or your biggest asset. Your home is a purchase. An expensive purchase. By the time you pay interest (even though you can get a tax deduction), property taxes, maintenance costs, repair expenses, insurance and utilities, the expenses really start to add up. Even if you do sell your home for more than you paid, it may not be enough to offset the accumulated expenses associated with owning a home for decades.

Renting, on the other hand, is usually less expensive. You aren’t responsible for the repairs or maintenance costs (unless you do something you shouldn’t), renter’s insurance is much cheaper than homeowner’s insurance, and you don’t have interest or property taxes. Depending on the market you’re in, a rent payment for a decent-sized home may be a couple hundred less than a mortgage payment. Some folks like to invest the difference, hoping for a better long-term return.

Greater Flexibility

If you aren’t going to be an area for very long, the flexibility of renting might be attractive. Aside from having to sign a one year initial lease, renting offers the ability for you to pick up and leave if you need/want to. We had hoped to be in our current home for a longer period of time, but, like so much in life, it isn’t working out. We will probably have to move to a new town, and that means trying to sell this house. If we were renting right now, we could just offer 30 days’ notice to the landlord and leave when ready. And, because we don’t want to be landlords, we will probably have to take a loss on the home when we sell it.

Bottom Line

As with all things financial, what works for you is different from what works for someone else. We probably weren’t exactly ready to buy a home, and we might not rush into it in the next place we live. While we can afford to live in the house, the responsibility of it, and the expense associated with it, can be irritating at times — especially when I think that we are likely to be moving after staying in the home for less than five years.

In the end, carefully weigh the pros and cons of buying a home versus renting it. Think about what is likely to happen in the future, and whether or not the money you put into home ownership might be better used elsewhere.

Why You Should Use Eco-Friendly and Natural Cleaners for Your Home

In many people’s homes, the cupboards are filled with a vast array of chemically-laden cleaners. What they are not aware of is the fact that many of these cleaners contain chemicals that can be damaging to their health as well as the environment. Instead of keeping their homes germ free and healthy, they are actually making it more toxic.

Many common household disinfectants contain something called ‘phenol’ or carbolic acid. This acid can attack the central nervous system, liver, spleen, kidneys, and pancreas.

Another chemical, one of the most dangerous, that is common in many households is oven cleaner. Many oven cleaners release fumes which affect the respiratory system. They also contain ammonia and lye which literally eat your skin. Instead, use baking soda and water. Sprinkle the baking soda in the oven and let it sit overnight. The next day, use a wet cloth and scrub the soda. This removes any brunt on grime you have. Then rinse with clean water and wipe to dry. This scrub not only does a wonderful job but it is chemical free, so it’s better for you and the environment.

Artificial air fresheners are another culprit. Many of them contain nerve deadening agents, which interfere with your sense of smell. Try using [amazon asin=B002RSEPAY&text=aromatherapy natural essential oils] instead. These are much safer and often smell better too.

After reading the above, you have to ask yourself, how can adding a load of these chemicals to our home environment be good for our health and cleanliness? Sure, you may kills some germs but you are slowly killing yourself too.

Using all natural, non-toxic cleaning products around your home is the best defense against dirt and grime, while keeping you safe and healthy, mother nature safe and healthy, and animals safe and healthy. Yes, many cleaning products are tested on animals before they are put on the shelf in stores for purchase.

Remember this though. Many companies claim to make natural products but always read the labels first. Make sure it reads only natural ingredients and doesn’t list any chemicals. It is best to buy from well known ethical and cruelty free companies.

Here is a list of companies your should avoid:

Companies that test on animals

Here is a list of companies that are safe:

Companies that don’t test on animals

So next time you go to buy cleaning products, make sure they are natural and safe. If you really want to be safe and save a few pennies at the same time, try making your own with these [amazon asin=1603420851&text=recipes]. This is what we do and we are extremely satisfied with the results.

So are your going to start cleaning green? I sure hope so.

How to Keep Your House Clean Without Spending a Lot of Green

Buying cleaning supplies for your house can be expensive, and you have to buy different products to clean different things. So, even if one cleaning product isn’t very expensive, having to buy a dozen of them can be. In addition to cost, many people are concerned about the chemicals in cleaning products, and whether they are really safe. With many people looking for ways to cut costs, there are a number of things that you can do to keep your house clean for cheap.

1. Use Rags – You can either buy a cheap pack of rags and reuse them or you can cut up old towels and t-shirts rather than throwing them away. If you use rags to clean instead of paper towels, you will save a lot of money.
2. Use Sponges – Using sponges is another great way to reduce the amount of paper towels that you use.
3. Use Newspaper – You probably don’t want to use a rag to clean your windows and mirrors as this can leave them streaky. Newspaper, however, is a great, cheap alternative to paper towels. It can be used on glass and some counter tops. However, do not use it on porcelain or white counter tops as the ink from the paper can stain the surface.
4. Use Homemade All Purpose Cleaners – Really all you need to clean nearly every part of your house is some white vinegar and some baking soda. One suggested formula for an all purpose cleaner includes ½ a cup of vinegar with ¼ of a cup of baking soda, mixed together in a ½ gallon of water and store in a container.  What can you use it for? Everything! For example,  for cleaning counters, you can sprinkle some baking soda on them, spray some white vinegar on that, and use a sponge to wipe it off.  Then use a damp cloth afterward to clean off any leftover baking soda.
5. Use Earth Friendly Bleach – Bleach is a cheap product, and it can be used for all purpose cleaning and disinfecting. Bleach usually needs to be diluted with water, but it makes a good bathroom cleaner, and it can be used to disinfect things like toys, plastic shower curtains, and dog bowls.
• Here is a tip: If you have cats, hydrogen peroxide will get rid of urine odors (it breaks down the urine crystals). Spray the peroxide on the spot, let it dry, and rinse with water.
6. Use Homemade Floor Cleaners – Diluted vinegar (mix the vinegar with equal parts water) can be used to clean nearly all floor surfaces. It is even gentle enough to be used on hardwood floors. Apply with a mop and let air dry. Note, any vinegar scent will dissipate when the vinegar dries.
7. Use Homemade Furniture Cleaners – You can even make your own furniture cleaner at home. Olive oil and vinegar are some of the favorites when it comes to making furniture cleaner. The formula is generally three parts olive oil to one part vinegar. For example, ¾ cup of oil and ¼ cup of vinegar. This mixture can be stored, but it does need to be shaken well before use. Spray onto your rag and rub into your wooden furniture. Some people prefer to add a couple of drops of lemon juice for the smell.
• Here is another tip: It’s always best to store your homemade cleaners somewhere that is cool and dry, like a pantry.
8. Use Homemade Carpet Cleaners – Carbonated water is a great option for cleaning small spills and stains. A baking soda and vinegar paste can be used for tougher stains, though you might have to vacuum up the excess when the paste dries. Water and vinegar mixed in equal parts can be used in carpet steam cleaners for general carpet cleaning.
9. Use Homemade Glass Cleaners – Again you can use equal parts water and white vinegar to clean glass mirrors and windows. Make sure to wipe off the excess solution, and it should not leave any streaks.

As you can see, if you invest in a little extra olive oil, vinegar and baking soda, you can pretty much clean your entire house for a few dollars. Cheap cleaning products like bleach are another good option for tough cleaning jobs. Using these products often saves you money, and you know exactly what you are using to clean your home.

So, do you have any tips or tricks for keeping your house clean for cheap? I want to know!

This post was written by YFS.

 http://prairieecothrifter.com/2012/01/cheap-green-cleaning.html

Tips for Green Living # 10

10. Avoid the Daily Waste of Fast Food and Shopping
Next week, keep track of how much trash you generate by eating out and making trips to the store, I guarantee you'll be amazed. All those bags, cups and containers really add up and are stuffing our landfills to capacity. Bring your own plastic or metal boxes to your favorite take-out joint. You'll save resources and save them money. Use reusable shopping bags whenever you go to the store. Say "no thanks" when the pharmacist or the fast-food clerk tries to put your one or two items in a bag. Use reusable cups for coffee, soda and other beverages. And reuse some of the extras at home -- keep extra napkins and reuse plastic cups and cutlery.

Tips for Green Living # 9

9. Drive Smarter
Simple changes in our existing driving habits can improve fuel efficiency by up to 25 percent. Drive at or near the speed limit, keep your tires inflated, make sure oil and air filters are clean, and step on the gas and the brakes carefully. Driving like a drag racer may be fun, but it has a substantial environmental cost.

Tips for Green Living # 8

8. Load Up the Washing Machines
Make sure you run the dishwasher and the clothes washers only when they're full. Clothes washers are huge energy and water users, so make sure you're doing full loads (or adjusting the water setting) whenever possible. And most of us use far more water (and soap) than we need to when hand-washing dishes, especially when compared with high-efficiency Energy Star dishwashers. So save your time, water and power by putting those dishes directly in the dishwasher after a meal.

Tips for Green Living # 7

7. Replace High-Use Indoor Lights with Compact Fluorescents or LEDs
With high-quality light, sizes for almost any fixture and even versions that are dimmable,  compact fluorescents have it all. They're more expensive than normal light bulbs, but between the energy savings and their much longer life spans, they pay for themselves in less than two years. And consider LED bulbs for non-dimmable circuits (especially for holiday lighting). They're true energy misers and will last for as long as you live in your house.

Tips for Green Living # 6

6. Use High-Efficiency Outdoor Lighting
A typical 100-watt floodlight, if used for six hours a day, can consume up to $40 of electricity over the course of a year and produce upwards of 400 pounds of carbon dioxide, depending on where you live. For starters, replace those floodlights with compact-fluorescent versions-they're just as bright and use a quarter of the energy. Next, replace low-wattage halogen landscape bulbs with LED versions. They cut energy use by over 80 percent and can last for 10 years or more. Finally, install motion sensors on any nonessential lights. New versions just screw right into your existing light socket.

Tips for Green Living # 5

5. Improve the Efficiency of Your Existing Water Heater
Tankless and solar water heaters are great, but simple changes to your existing setup can cut your energy bills and carbon emissions by 25 percent or more. Reduce the temperature of your water heater to 120 degrees, wrap it in a water-heater insulating blanket and insulate the first 3 to 6 feet of hot and cold water pipes. These inexpensive changes should take you less than an hour to complete.