This is especially true if you are a homeowner and take all the ancillary expenses of owning a home into account.
Even though this is likely the biggest part of your budget, there are ways you can reign in your housing costs.
If you are currently renting your home:
If you are approaching the end of your lease, search around to find a cheaper place to live
You may find the market has dropped significantly since you last signed your lease. If you have a long time to go before your lease runs out, find out how much it would cost you to get out of it if you find a place you can get for significantly less money.
Keep in mind that when calculating any potential savings that any moving related expenses could nullify the annual savings you could see.
Move in with parents or other relatives
Sure, that could be a big time bummer, but if you are able save enough to correct any financial issues you are facing, or even get out of debt, it is certainly something to consider.
Stay in your current location
But get a roommate, if your lease will permit it.
If you own your own home:
Look into refinancing your mortgage
By refinancing, you will lower your monthly payment. But, be very, very careful in how you do this. Ensure that the terms aren’t set up in a way that could cause you big troubles down the road.
For example, an interest only mortgage will likely leave you with a huge balloon payment at the the end. You’ll want to speak with a financial advisor, a credit counselling agency or real estate attorney if you aren’t familiar with refinancing.
Rent out an extra room
Sure, you may not want to do this, but it can generate a nice income over the course of the year.
Lease your home
Do this and you can move into a cheaper home. Just make sure the rent covers all the expenses that you’d run into, including mortgage payments, insurance, property taxes, and everyday maintenance and repairs.
Sell Your Home
This would be a last resort type of thing, but if you are paying more for your house than you can really afford, you may have no choice but to get out from under this debt.
Article by Bruce Guzman
About the Author : Bruce has been writing personal finance issues since 2008. In addition to his writing, Bruce also operates a number of informative web sites. You can check out his latest website here: Used Shipping Containers featuring Used Cargo Containers
- Benefits of Refinancing Your Mortgage (mortgagerefinancerates.org)
- Should You Become a Landlord Instead of Selling Your Home? (wisebread.com)
- Family Budgeting – What to do When You Can’t Pay Everything (healthylifestyleplus.com)
- Should I Buy with Cash or get a Mortgage? (militaryvaloan.com)
- How Does a Lease-to-Own Work? (blogs.lawyers.com)
Category: Healthy Lifestyle