If you live in a big city like Atlanta or another area where real estate prices are going through the roof, it may be tempting to relocate to a cheaper area.
After all, the pasture always look greener on the other side. Furthermore, big cities have made it cool to live in large homes.
But big homes often mean big mortgage payments, so it may be time for you to make an adjustment to keep your mortgage from eating your paycheck.
Downsize Your Home
If you don’t have a family, it may make sense to downsize your home. Not only will the mortgage payments be easier to handle, but you may be able to the equity in your big home to add to your savings.
Other benefits to downsizing include:
- Lower energy bills
- Less maintenance
- Less financial stress
So many people believe moving to a cheaper city or state is going to make a difference, but the reality is that if you have a decent job, maybe you shouldn’t relocate.
Here are three other options that can help you downsize fast:
1. Set Goals
Re-align your financial goals based on where you want to be, not where you are now. Do you still need the amenities you bought the phone for? Do you still use that pool or sauna?
2. Refinance
Mortgage rates are approaching low levels again, and that makes a refi very attractive to people who have huge monthly payments.
3. Re-Invest Your Equity
If you’ve been in your big home for a nice period of time, it’s likely that your home has appreciated to the point that you have a pretty large nest egg inside of it.
Instead of continuing to pay that big mortgage, find a cheaper home in the same area or city and use that equity for the downpayment.
Better yet, you could use that equity to invest in a retirement fund like a 401(k).
Interested in other ways to save or make money? Check out our Money Section:
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