Everyone is looking for ways to save a few extra dollars these days, and we often choose to do so by skipping the coffee at our favorite coffee shop or opting to bring a lunch to work instead of eating out. While these efforts are effective in saving a few dollars a month, sometimes more dramatic actions are necessary.
Our homes are more often than not the biggest expense we have, and one of the best ways to maximize your monthly budget is to downsize your living space. The top 5 ways that putting your extra possessions in self storage locations and moving to a smaller space can save you money include:
Monthly Mortgage Payment
There is no denying that the most expensive aspect of owning a home is the monthly mortgage payment itself. If you feel as though your mortgage is stretching your budget, consider downsizing to a smaller home or even opting to rent. The money you save can easily be a couple of extra hundred dollars a month.
Utilities
The larger the space the more energy it will consume which means that your utility bills will be higher. By choosing to live in a smaller home, you will be able to reduce the amount of energy needed to light, cool, and heat your space which will ultimately save you a couple hundred dollars over the course of a year.
Maintenance
Larger homes require more maintenance. There are lawns to be maintained, exteriors to be painted, and constant updates to be made. However, by downsizing to a smaller space you can reduce the amount of maintenance that your home requires, and therefore save your money.
Insurance
Next to your mortgage payment, insurance is one of the highest expenses that come with your home. Whether it be private mortgage insurance or homeowners insurance, insurance premiums can cost you hundreds, if not thousands, of dollars a year. By downsizing your home, you can save on your PMI and the amount you spend on homeowners insurance, and depending on the size of your downsize, ultimately save yourself several hundred dollars a year.
Economic times are tough and sometimes we have to sacrifice our high expectations of our living space in order to have the financial future we desire. While switching to a smaller home may not seem ideal now, choosing to do so can save you thousands of dollars that may ultimately put you in a better financial situation for years to come and give you a much more enjoyable and stress free life.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
