Home Security: Saving Money Starts With Downsizing House

Often saving money is a topic that the majority of individuals refuse to dive headfirst into, and truthfully and truly take a long hard look at their financial situation.

Instead, the typical response to the “saving money” discussion resides on more of a topical level, with few looking deeper than a few expense cuts that aren’t going to move the proverbial needle as far as actually leading to a decent amount of money saved over time.

For example, you may decide that you want to downgrade your cell phone service and go with a smaller data plan or take a device off your bill that you aren’t using (such as a modem or hotspot), and that will save you about $20 per month.

That’s certainly a place to start and an extra $240 per year can be incredibly valuable, but that sort of savings isn’t going to lead to thousands and thousands of dollars in your bank account over the course of that same year or beyond.

That isn’t to suggest you shouldn’t look for monthly budgeting saves like the phone downgrade example in order to properly have enough money set aside each month to put toward saving, but eventually if your money woes and inability to have a savings account are too great, you’ll need to think big.

Really big.

In fact, you might want to start with your place of residence, namely that house and that even larger mortgage you’re paying that, despite attempts to convince yourself otherwise, you can’t afford. That large amount of money you dole out each month is breaking your budget in half, and as much as you love to have a swimming pool, large yard and white picket fences, you know that you made a critical error when you bought the house and overspent.

This is fairly common, mostly because when a consumer gets approved for a home loan at, let’s say $150,000, they spend about $150,000 on a house, not taking into consideration that the amount is your full borrowing ability, and there’s nothing wrong with going well under that maximum total.

For those serious about saving money and paying off debt, they move on from their current, expensive house and downsize to about half of what they’re paying, and then subsequently use that money to put toward debt and ultimately save as well.

Although this seems like an extreme example, you can’t underestimate just how powerful and effective downsizing your living space can be to not only save and pay off what you owe but live a little more comfortable financially.

Even if that living comes in a smaller home.