Tips for reducing housing expenses: Feature Article
When times get tough and the economy is down, people start to hunker down and look for ways to save. One area that many people think that they won't be able to save in with their home and housing expenses. Usually the price of your house is pretty well fixed. However, despite popular belief, it is possible to reduce housing expenses, especially during hard times. By reducing housing expenses you can make life easier on yourself.
The first thing you want to ask yourself when trying to reduce housing expenses is do you really need what you have. While it may seem a bit extreme, most people would agree that the best way to reduce your housing expenses is to downsize. Smaller homes use less utilities, costs less, require less furniture and décor, and typically have lower property taxes as well. So downsizing can help you save a bundle in housing.
When determining if you should downsize or not, consider the following:
Is the average home or income in your neighborhood above your means? Many people move into homes that while seemingly affordable are in higher end neighborhoods, and places beyond their means. While their house may not be costing them too much, the inclination to keep up with the wealthier neighbors may. So, make sure you choose a neighborhood that fits your means.
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Some people would argue that they need that size of home because of the number of people in their family, or the amount of things they have. However, you can ask yourself if it would be possible to find the same space in a less expensive neighborhood, without sacrificing your safety. Often times you pay a premium on the square footage because of the location. A gated neighborhood, for example, will cost more than a non-gated a few miles away. A beach front home will cost more than one a few miles inland. So, when trying to reduce your housing expenses, consider the price for the house versus the cost for the neighborhood.
Helpful Resources: Reducing the Costs of Living Reducing Costs of Housing Buying a House Reducing Housing Expenses Typical Housing Expenses Eco-Friendly Housing Expense Reduction Saving on Housing Expenses Reducing Your Housing Expenses |
The next thing to consider when determining if you should downsize is the size of your home. If you have a family of ten, a four-thousand square foot home may be necessary so you are not stepping on each other's toes all day. However, a family of 2-4 does not need a home so large. It can be tempting to buy a big home, especially if you have a lot of "stuff", but when times are hard, and finances are tight, it is a good idea to ask if your home is bigger than necessary. If so, downsize.
Next, look at the rooms you have, do you really need to have everyone in the house have their own room? Do you need to give your crafts a room? How many guest rooms are necessary? People forget that they do not really need all of the rooms they have because they have found ways to fill them and purpose them. However, if you want to reduce housing expenses to make tough times a little easier, smaller homes can really help.
Besides the option of downsizing a home, what are some of the other ways you can reduce your home and housing expenses? The following are ways to reduce housing expenses if you have not currently chosen, bought, or moved into a house:
Buy an older, inexpensive house and modernizing it yourself. Often times the home can be upgraded for $10K-$15K, and the original purchase price can be $40K - $50K less than the same size home purchased newer.
Use a contractor to finish the outside of the house, then do the interior work yourself, once the electrical and HVAC is in, most people can figure out things like laying tile, painting, etc. You can also usually hire a handy-man for a fraction of the cost of a contractor.
Consider living in a mobile home or modular housing. These are far less expensive housing options than traditional houses, and can often provide ample space.
If you already have a home, and are looking for ways to reduce your housing expenses, consider the following tips:
Conserve energy. Most people think that since their utilities are set amounts, and you can't negotiate with the utility company on what you will pay for gas, electric, etc. that they can't do much to reduce those expenses. After-all, you can't exactly shop around for utility providers. So, while it is true you can't pay less per unit used, you can use fewer units of energy. Consider some inexpensive upgrades to help cut down your utility costs, such as low-e windows, new caulking around doors and windows, energy efficient appliances, etc. Also, teach your family to practice energy conservation techniques such as limiting shower times, only washing full loads of clothing, turning off lights, electronics, radios, etc. when they leave a room.
Another way to reduce housing expenses is to change the settings on your thermostat. Most people spend more than they need to for heating and cooling. A few degrees difference can hardly be felt sometimes, and can make a world a difference in your bills.
Consider adding more insulation to your home, especially in crawl spaces and attics. This can make a huge difference in how much heat and cool air enters and escapes your home. In addition, it is really inexpensive to add insulation, and if you do it yourself you may be entitled to a large tax credit.
You can explore alternative energy sources for reducing housing expenses, such as installing wind turbines, solar panels, or other options. These usually have a larger upfront cost, but can help you save substantially in the long run. When times are tight this is not the best option as it costs a lot to put in, but if you use forethought, and install them when you have extra means, then if times do get tight, you won't have to worry as much about where you are going to get the money to heat, cool, and power your home.
If you really want to reduce your housing expenses during tough times it is essential that you keep your home in good condition all of the time. It will insure top money when selling, but it will also insure that you do not have to spend as much on fixing your home. Even small home repairs can add up and be expensive, so do your best to keep your home in good condition so you do not have to pay for repairs, only maintenance.
If you do have home repairs, it is not a bad idea to consider getting an illustrated manual or library book and try to learn how to fix common problems yourself. Most handymen and repair companies will charge a flat rate of $75 or more just to come to your home and assess the problem, then additional fees to fix it. When times are tight, and even when they aren't, that $75 could buy a lot of groceries.
If you want to reduce housing expenses, look for the least expensive, quality materials you can find. Search discount stores, auctions, garage sales, thrift shops, classified ads, and clearance sections before paying full price for anything.
If you are going to buy furniture for your home, a good place to start is with family and friends. Often they will have items they are storing in their garage or do not want or need anymore and can save you a lot. Then look at classified ads, garage sales, etc. You can often get great quality pieces for a fraction of the price because someone changed their decorating scheme, or upgraded, etc. If you want to buy new, look for floor samples, or model items, discontinued items, etc. as they will cost less. You can also consider buying unfinished furniture and finishing it yourself.
No matter what, if you want to reduce your housing expenses you have to have a frugal mindset. You want to ask yourself if you want something or need it. When times are tight, it is best to stick with only the things you need. In addition to that, learn to shop around and do your research before investing in anything. You also will want to ask yourself if there is any way you can make this yourself for less. For example, curtains, bedspreads, etc. are often simple to make, and even a novice can make them for less.
Learn when the best time to buy things for your home is. For example, experts say that if you are going to buy electronics, such as radios and TV's the best sales and prices are during January and May sales. February and June are good times to buy bedding, floor coverings, and furniture. March and July are the best months for finding deals on washers and dryers. Rugs can be found during the August and October sales, etc. If you keep an eye out, and take note, you will find that certain times of the year offer lower prices on certain items. For example, blankets and bedding often go on sale right before cold months, whereas during the summer they are hard to find on sale.
If you can follow these tips, you will be able to reduce your housing expenses and make it easier to survive tough economic times.
