Buying a smaller home may help you save money. Find out how.
Two and a half years ago, my husband and I purchased our first home. Finding the right home is a process, and it can be tempting to choose a home that is too expensive or too large for your needs. However, buying a smaller home can offer financial savings. Plus, this choice may help you prioritize other financial goals more easily. Here are four ways purchasing a smaller home has helped me save money.
1. Lower utility bills
You’ll likely have lower utility costs when you own a smaller home since it will likely require less utility usage than a much larger home. Due to the smaller footprint of our house, the utility costs are similar to what we paid as renters. Having lower monthly utility bills helps keep our monthly expenses lower, and it offers flexibility so we can budget more of our money for other needs.
2. Less likely to make unnecessary purchases
When you own a smaller home, it means there’s less space to store extra items and you have to be more strategic about where everything will go. I don’t know about you, but I’m not a fan of moving. The more stuff you own, the harder it is to move and the longer the process takes. Owning less makes moving less stressful.
I’ve found that living in a smaller home helps minimize unnecessary spending. I know that we have less storage space, and we don’t want to live in a home that feels cluttered. Because of this, we’re more selective about what we buy. Since we’re spending less money on unnecessary purchases, we can contribute more money toward our savings goals.
3. Lower repair and maintenance costs
Unlike renters, homeowners are responsible for repair and maintenance needs. These expenses can be significant, and it’s essential to prepare for them so you’re not put in a difficult financial situation.
We’ve already had to spend money on some repairs and maintenance needs for our home. One nice thing about owning a smaller home is some repair costs can be less than they are for a much larger home. If you need to pay for a new roof, for example, a smaller home will likely have a smaller area to replace.
If you don’t have extra funds set aside in a savings account, it can be stressful figuring out how you will cover repair costs. To avoid financial surprises, …….