11 Reasons You’re a Genius If You Buy Less House Than You Can Afford

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It’s the American Dream. You work hard, buy a house and expect upward mobility. Next up, you have kids, accumulate a lot of stuff and buy a bigger house.  You make more money and want to buy an even bigger house. It’s “what you’re supposed to do”.

A few common reasons you might buy bigger are:

  • You’ve outgrown your home,
  • You think more house will make you happy,
  • The bank approves you for more than you thought,
  • You receive a raise at work,
  • You want to stroke your ego a bit.

The problem is, along with more house comes big responsibilities. And even bigger financial commitments. Why do many of us buy into the big house syndrome if it’s not going to make us happy? 11 reasons you're a genius if you buy less house than you can afford

In this post, I’ll share with you 11 reasons you’re a genius for buying less house than you can afford.

1. It’s easier to sell

A smaller more affordable house will appeal to a larger pool of home buyers. Buying the least expensive house in the best neighborhood means your home value will typically go up. Instead of going for more square footage; a smaller house in your budget could mean a better neighborhood aka a smart investment. The higher value of the surrounding homes will increase the value of your home.

2. Lower monthly expenses

With a smaller house, you’ll have lower monthly bills. Your mortgage payment will be lower, your electric bill, cleaning and repair costs will be lower. You’ll have lower taxes and a less square footage to maintain.

3. More money to invest/save

With a smaller house, fewer expenses and hidden costs you’re likely to be under budget and have more money to save and invest. You’ll be able to pay off your mortgage sooner, save more and boost your savings and retirement.

4. You’ll pay less interest

With a smaller house, your mortgage payment will be lower. You can take the extra cash and apply it toward your mortgage payment. You’ll pay off your mortgage sooner and in the long run, pay less interest.

5. You might become a minimalist

You’ll get rid of junk you don’t need and keep your favorites. You’ll think about where you’re going to put things before you buy them. Where will you store that bread machine you don’t need when it’s not in use? These are the questions you ask yourself when you live in a small house.

6. It’s easier to maintain

A smaller house will be easier to clean and maintain. There’ll only be one place for something and if you run out of space you quickly start to glean out the things you don’t use or need.

7. You can splurge on small items

The money you’ll save living in a small house you can spend on splurges and quality upgrades. You can fill your small space with your favorite things. Quality over quantity.

8. You’ll have less risk

You’ll have lower debt, therefore, less risk. This part is a no-brainer. If something were to go wrong with your job or health you won’t be strapped to a hefty mortgage payment.

9. More peace of mind

Living below your means will give you peace of mind. Mentally you’ll always feel like you have more if you spend less.

10. Your family will be closer

Have you heard the expression “small house close family”? It’s true. In a smaller house, you’ll need to respect each other and work problems out. Why? Because wherever you go, there they are. You’ll have one or two rooms for watching TV instead of a media room. Smaller living spaces increase the odds of interacting and spending quality time together.

11. You’ll have more time to do what you love 

When you live in a big house you naturally accumulate more possessions. The more possessions you have, the more things you have to take care of. A smaller house will give you more time to do what you love.

Even if you don’t choose to embrace the tiny house movement that’s happening around the world you can still benefit from a smaller house. You’ll have more of the things that bring you joy. How does it get any better than that!

Can you think of any other reasons living in a smaller house could be beneficial? Let me know in the comments below.

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