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Your House: Is Bigger Really Better?
by Kimberly Danger
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Your home is probably the biggest purchase you will make in your lifetime. It's
your castle, your refuge, the place where family memories are created. It is
also your biggest expense. |
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In the past 50 years, house sizes in the United States of America have doubled,
while the size of the average family has gone down. Do we actually need these
bigger houses or "McMansions" as they're often called? Are we buying them simply
to "Keep up with the Joneses?" Can they actually prevent us from living richer,
fuller lives?
Of all the financial mistakes I see and hear about the most; overextending on a
mortgage is probably the biggest one. Banks, being in the business of selling
loans, will generally approve homebuyers for the maximum loan that isn't a huge
risk to the bank itself. This isn't always in the homebuyer's best interest. If
families aren't careful about advocating for their own financial well-being,
they can end up in over their heads.
Nobody wants to be a slave to their home, but sometimes that's what happens.
Huge monthly payments that you can barely afford often mean there's nothing
extra left over to allow you to live your life. Instead, you end up living for
your house.
If you're thinking about trading up, consider these things:
Additional Expenses
When considering housing expenses, many people just look at the basics, like the
mortgage itself and property taxes. When you're in a smaller home, not only do
you have a lower mortgage payment, you typically have lower utility bills, lower
insurance costs, and fewer expenses related to upkeep and maintenance.
Lifestyle Cost
When a smaller portion of your income is allocated to your mortgage, you're free
to spend more on other things. Imagine what having a few hundred (or thousand)
bucks left over at the end of the month. You'd probably be able to do a few more
of the things you've been wanting to do, including vacations, eating out, saving
more for retirement, or increasing your charitable donations.
Less is More
With a smaller house, you may be able to afford more of the upgrades you've been
dreaming about for your home. The extra plush carpeting doesn't cost as much
when you're covering fewer square feet. The granite countertops are much more
affordable when you have money left over after paying your mortgage. You can
live the "good life" on a smaller, less expensive scale.
Time Requirement
How much time do you spend cleaning and maintaining your house right now? Do you
enjoy it? The bigger the house, the more there is to maintain, and the more time
it takes (unless, of course, you have a housekeeper, handyman or groundskeeper).
That is time away from your family, your friends, and your hobbies.
Is the big house really all it's cracked up to be? Maybe, if you have considered
every aspect involved and can afford it. But then again, maybe not. You may come
to the conclusion that where you are living now isn't quite so bad. Or, you may
even decide to purchase a smaller house next time around.
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About the Author: Kimberly Danger is the
owner and publisher of Mommysavers.com, a site for moms living
well for less. Portions of this article first appeared in her
blog, Forget the Joneses, which also appears on her website.
http://www.mommysavers.com
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