The Financial Pitfalls of Living “Large”
It’s not a news flash that saving money is hard, really hard. There is plenty of advice around with a wide variety of suggestions. Anything you do to cut back can help. However, the biggest opportunity may lie with your biggest, overall, long term expense, your residence.
Some things to consider. How much home do you really need? Could you live closer to work and/or the places you may frequent? Multiple vehicles and long drive times are expensive. Should you rent or own?
It is certainly not unusual, or profligate to want a bigger home, an attractive school district and other real world features when you are in the process of starting and raising a family. But things change. You don’t have to go back to a college dorm or your parent’s basement, but some review of your real requirements may have merit, as you go through the normal changes in life and lifestyle.
A hard nosed assessment of your changing residential requirements could enable you to add to your retirement fund.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®