While the stock market is dropping and I'm on a brief hiatus
, thought I'd mention some of my other theories on money . Basically , if you give a three year old money , they will figure out how to spend it . My younger brother's concept was money burned a hole in his pocket . The harder lesson is to learn how not to spend it . An even better ploy is to learn how to spend it and get the most of what you want for the money you spend . An important concept is that paying interest is a waste of your money . But there are some purchases that require that you take out a loan and borrow money , to waste even less of your hard earned finances . For instance , renting does have it's place under some circumstances . If you are only going to be in an area for a short period of time , you'd actually lose money by buying a house because of the costs of settlement and the probability of not being able to sell the property when you were ready to leave . On the other hand I heard of a collage student who purchased a home next to a collage , took in room mates , and used their rent money to both pay for the mortgage and to fund her collage courses . Nice if you can do it . Like wise , buses , taxis , or commuter trains cost money and it may or it may not be in your best interests to purchase your own mode of transportation . Walking is cheapest , a bicycle , could be a good investment for a distance of few miles , and would also negate the need for a gym membership . If you really need a car , take into consideration that in addition to the purchase price and interest , you also need to pay for insurance , gas , oil , and repairs such as tune ups and new tires . I have a friend who is unable to work a 9 to 5 job , so she puts in time as an Ubar driver , again though , it's a job that requires that you take your expenses into consideration .