Although being a homeowner is a huge element of the American Dream, you don’t have to own a house to have a nice life or live the life of your dreams. People are eager to point out that you can acquire a mortgage with prime interest rates for nearly the same monthly amount as a month’s rent. Some people, on the other hand, see renting as handing up your money to someone else and receiving nothing in return. Renting might really be beneficial to your budget for a variety of reasons.

Not only are you free to go to work, hang out with friends, or just rest while your landlord takes care of the problem. As a homeowner, you’ll see that several costs arise during the year that may total more than the rent you pay. When you include in the time you miss out on paid job or family time, you may find yourself financially and socially behind. While there’s no reason why you can’t move as a homeowner, it doesn’t make sense on so many levels to move more than you have to. There’s no reason to be bound into a mortgage, especially during the years when you’re more likely to move owing to employment and relationship changes. As a tenant, you usually only have a one-year lease, and even then, you can usually negotiate to get out of it without too much difficulty.

A renter’s insurance coverage is something that every renter should think about. While you will have to pay a monthly or annual premium, if your apartment is broken into and valuables are taken, or if another covered occurrence occurs and you file a claim on your policy, you can easily come out ahead financially. Not to add, renters insurance is often regarded as a very cost-effective kind of protection. Hopefully, you’ll never need your renter’s insurance, but having it provides peace of mind that if something goes wrong, you won’t be in a financial dilemma.