House Party: Why Overspending On House Can Be Your Savings Downfall

Looking around your house, ask yourself a question: is it too big for you?

The reason behind this question centers on saving money or the inability to do so and looking at your home as the biggest and, ironically, the least apparent culprit.

When you're in the market for buying a home, chances are you're going to want something beautiful and, in some cases, overly impressive. Most home buyers tend to get into a mode when they're buying as if they're going to host parties and imagine what it is going to be like to have people over to their house for parties and such.

Much the same way new car smell tends to get the better of individuals when buying used is smarter financially, the new house, the large yard, the expanded kitchen with island and not one but two living rooms to go with the swimming pool and deck are just too good to be true and so tough to resist.

Message to your inner financial self: ignore it all.

This isn't to suggest that you can't have a lovely home or have to settle, per say. This is more a commentary about finding a home that it quaint, modest and affordable, without having to live in a shoe box but not feeling that need to overspend and thus have too much house that you don't only don't need and is highly impractical but also too expensive given your budget and a propensity to want to save money.

You also have to consider owning versus renting really, and while the latter is often looked upon as a way of "throwing your money away," it also is a much less expensive way to live and like this would lead to a better ability to save money. Owning a home comes with it the chance of expenses that are yours to pay for, versus renting and having the landlord be responsible.

The general thought is that buying a home is something you have to do, but that just isn't the case. If you do want to own a home, there's nothing wrong with that thinking, either. But think small and only buy what you need.

If it's just you and your significant other, why do you need four bedrooms? And remember to buy something you can afford if something in your life changes, such as a loss of income. You don't want to be saddled with something that has a considerable overhead mortgage wise and then not has any clue how you're going to pay for it.

No one says you can't have the home of your dreams. But those "dreams" shouldn't come at the expense of your financial future.

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