Guest Post: The #1 Thing To Avoid If You Want To Live With Less Stress And More Money

Recent, sorta shocking data seals the deal and dictates the future

Source: Author / This is what stress looks like

Happy Friday, everyone. I have a special treat for you heading into the weekend; a guest post from my friend Rocco Pendola who writes a Substack called Never Retire.

I’ve had the pleasure of reading Rocco’s work for years, first on Medium and now here on Substack.

There are three things I find refreshing about Rocco’s Substack.

1. It is centered around a very specific topic—living the “never retire” lifestyle

2. He has strongly held beliefs about money and life and is not afraid to buck “conventional” wisdom

3. I don’t always agree with him—but in the best way possible! Following writers that share the exact same opinions as you is an easy way to fall victim to confirmation bias. Rocco’s writing always makes me think.

If you haven’t already, go subscribe to Rocco’s Substack here.

---

By: Rocco Pendola

If the numbers I’m about to spew don’t put the issue to rest once and for all, I’m not sure anything will.

The issue being home ownership.

And the idea that home ownership only makes sense if it puts you in a better financial situation today and for the duration than you were in yesterday.

This counters our typical way of thinking, which says home ownership is a prudent choice, even if it causes you to struggle financially and/or work considerably more than you otherwise might all to service a mortgage and maintain a home.

How our society bought into the latter while wholly blowing off the former, I’ll never understand.

Especially when you consider findings from a recent study Real Estate Witch, a real estate education platform, conducted:

• The average homeowner — in 2023 — pays $17,459 annually in housing expenses on top of their monthly mortgage payment.

If you bought when rates were low and prices weren’t so high — and you’re sitting pretty — this obviously does not apply to you. Put yourself in the shoes of a person or couple who (maybe foolishly) became homeowners in an era when the time and place are no longer right and might never be again. At least not in America.

In 2023, you’ll pay a record payment on your mortgage and drop hundreds, if not thousands more each month on top of this. More stress, less money.

From the study, here’s the breakdown —

Insane.

My partner and I don’t pay this much for rent in a year. And we don’t plan on ever paying anything close to this for rent or if we end up becoming homeowners at a later time and most definitely in a different place.

• 90% of these homeowners say the cost of owning a home is higher than they expected.

• 73% say they have regrets over becoming homeowners.

• 65% have some flavor of buyer’s remorse, including 71% who took out a mortgage during the pandemic.

And dig this —

Although 91% of homeowners say they’re proud to own a home, they’re willing to admit that homeownership comes with a great deal of stress and responsibility.

That’s especially true for those who bought homes requiring significant maintenance. Fixer-upper owners are 67% more likely than other homeowners to say their house has negatively affected their mental health.

As a whole, homeowners say owning a home is:

• Stressful (53%)

• Too expensive (50%)

• Harder than renting (48%)

• Not attainable for the average American (40%)

• Negatively affecting their mental health (26%)

• Not worth the hassle (22%)

To make matters worse, here’s how people are paying for upkeep and home improvements —

• Savings (36%)

• Credit card(s) (25%)

• Debit card(s) (19%)

• Personal loan (7%)

• Home equity loan or line of credit/cash-out refinance (6%)

• Support from family/friends (4%)

No wonder why they’re stressed out.

The lives we’ve been expected to lead — and that so many continue to aspire to — can generate far more stress than they’re worth.

This ties right into separate data from the World Health Organization which says 42% of people in the US, UK, Australia, France, Germany and Japan report being burnt out. Among 18–to-29 year olds that number rises to 48%.

Here’s how the WHO defines burnout —

• feelings of energy depletion or exhaustion

• increased mental distance from one’s job, or feelings of negativism or cynicism related to one’s job

• reduced professional efficacy

This likely ties things together on the issue better than we ever have before.

If you’re Gen Z or a millennial, you have lots of pressure to be a high achiever. You saw Mom and Dad and maybe Grandma and Grandpa do it. They don’t get it. They expect you to do what they did — work harder and achieve the American dream.

So you put a shit ton of stress on yourself to do what has become, at least, next to impossible for large swaths of the population and, at worst, a physical and emotional stressor of epic proportions.

It sucks that so many people are putting themselves through this in lieu of the clear and present opportunity to live a soft, easy, and way more fun life.

If you’re not set on housing (and, more generally, financially) now and for the duration, you absolutely must —

• Reset your expectations (if applicable).

• Embrace your reality and stop chasing somebody else’s.

• Make a plan and a plan B sooner rather than later. As in now.

• Lower your cost of living.

• Find and secure affordable housing, even if it means making a move. Maybe a big move.

• Aim to reduce your housing expense to zero — or as close to zero (given the attendant costs of home ownership!) as you can get it.

---

---

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.