Living in a smaller home to have more $$?

**Greebo** · 05-20-2009, 08:21 AM

Times being "a little tight" cause "a lot of stress". Money stress is still the leading cause of divorce. Don't underestimate that. Don't move up in house until you can really afford it. Get debt free. Save your marriage.

**Metro2005** · 05-20-2009, 09:07 AM

I would definitly stay in the smaller house and save the money and live with peace of mind that you have a large savingsaccount.

**mommy4ever** · 05-20-2009, 09:47 AM

Bigger doesn't always mean better. Friends of ours moved into a newer house. It looks huge. I got the tour, and the bedrooms are smaller than our home, there is no storage. Sure there is more open space, but it's just that, open, not storage, not really useable for what our family would need. Now it's a beautiful home and will work for them, they only have 2 kids, and they only live with them part time. So less paraphenilia. So for them it's great, but the price tag compared to their old home was $150K more, taxes are triple in that area. So are they any further ahead $$ wise? Not really.

When my kids move out(my youngest is 5), we'll likely downsize, but I have 2 requirements. 1 guest room, one office for me, and the main floor open concept, I have 4 kids, and presuming 4 spouses and 2 kids each... I want room for them to visit. Basement can be developped for extra guests to stay, but I have a feeling they aren't moving away and I only need to plan slumber parties for the grans. Ok, that is a ways away, but it'll start in about 6 years or so, the moving out..lol.

**MomToTwoBoys** · 05-20-2009, 10:46 AM

I'd honestly stay in the smaller house unless you have plans to have lots of kids. A 3br 1bth is pretty big for just two people. I'd save up the leftover money and stay in the smaller house.

You have to look at any what ifs that may be out of your control whenever making decisions to upgrade/downsize. What if something happens that totally changes your fiscal situation and you end up being stuck or not able to keep up? Things are still really rough and with that much income, I'd keep in the smaller house and put money into something temporary that'll accrue interest (not a savings account, perse, but more of something like CDs).

**frugal is fun** · 05-26-2009, 03:38 PM

Originally Posted by Metro2005

I would definitly stay in the smaller house and save the money and live with peace of mind that you have a large savingsaccount.

Ditto! this is exactly what I would do.

**Heracles** · 06-08-2009, 10:28 AM

Thanks for the feedback.

Its interesting how the wife and I for the most part dont really mind our home- We have some updating to do in the kitchen and the basment etc..

The thought is with high property taxes also, why bother buying a bigger home, just to have to "down size" later...

Then you have those annoying extended family members- that make comments time to time like "wow, need to get a bigger house if you have more kids"...funny thing is (sister in law- married my wifes brother) they are broke, and had to borrow $1000 to refinance their home from my inlaws...

I dont care what people think for the most part, but when people start picking on you and challenging you sometimes you just start getting the " I will show them" mentality...lol..

We went to greece to visit my parents last summer for 2 weeks...talk about envy city...people are always hoping to hear you are not doing well, and hope you dont prosper...

Im with you guys, live in modest home, have money, be debt free-

It has to work right? We should have the last laugh...People out there buying $30K cars, buying more house than they can afford, going out to dinner once a week..lt adds up.

It doesnt mean anything if you "make alot of money" and your so stretched out you live paycheck to paycheck. Some people making $50K probably live better than people making $100K with more debt.

**CrazyCat** · 06-08-2009, 12:19 PM

I call that 'house poor'. When the only thing you can afford is the house payment and taxes.~My dh and I made a decision years ago not to buy what the 'bank' said we could afford, but what we thought we could afford. Kids come along...along with unexpected expenses...but we were still able to take a vacation every year. We have no debt except for our mortgage, which is going down down down.

My only advice would be....add another bathroom....maybe build another room if you need space that badly. I wouldn't 'double' my mortgage..along with the taxes. BUT...that's a personal decision everyone has to make.

**danni** · 06-08-2009, 06:02 PM

We are living in a 1100 sq ft house right now. My daughter just moved out, so now there are only 6 of us with 4 cats and a lg dog. We actually looking at buying property and building a smaller house. The kids are going to be leaving and we don't want the mortgage of a large home. Besides I don't enjoy cleaning that much. LOL