Why your big house is making you big-time poor

Has anyone told you to buy as big of a house as you can afford?

It’s one of the most destructive pieces of advice ever given.

Why? Because it encourages us to go further into debt for a space we don’t need. And don’t forget, just because you qualify for a certain mortgage amount doesn’t necessarily mean you can afford it — or, should spend it.

Remember the mortgage crisis of 2009?

That’s all the proof you need. Mortgage companies conned millions into believing they can afford huge homes with big mortgages.

When we buy a big house, we:

• fill all that space with stuff (that costs even more money),
• stick ourselves with a higher mortgage, forever
• still need to clean and maintain that space
• pay higher utility bills

The argument is we “grow into that space” as our families grow.

But, why do we need more space to grow into?

Moving can be a pain, but is not moving worth paying a bigger mortgage for months (or even years) before we actually need the extra space?

Editor’s note: I fell into this trap myself. As a single person, I bought a 4-bedroom house in the suburbs, thinking that I was going to “grow into it”. Well, I never did. Several rooms were simply closed off. But, my mortgage payment every month paid for that room. I heated and cooled that room.

Don’t forget that larger homes tend to have higher insurance premiums and higher property taxes, too.

Moral of this story: Buy a smaller house than you can afford.

Then, use the extra cash to pad your investments. Boost your emergency fund.

Maybe even take a nice family vacation every year.

If your family grows and you truly need more space, look into moving. Then, you will pay for additional space when you actually require it. Not before.

Tell me: Has anyone ever told you to buy as big of a house as you can afford?

Did you do it?