Source: The Ascent —
If your housing expenses — including mortgage payment, homeowners insurance, utilities, maintenance, and property taxes — leave you with little left over each month, you may be called “house poor.”
The first thing to know is that there’s no shame in your situation. Anyone can become house poor, no matter how much money they earn. It’s all about the portion of your income dedicated to keeping you in that house.
For some homeowners, becoming house poor comes as a shock. From the time they first met with a mortgage lender, they were confident they earned enough money to keep them comfortable. And then something happened. It could have been a sudden illness, job loss, divorce, or other change in circumstances.
No matter the cause, if you’re feeling house poor now, here are four steps you can take to help alleviate that feeling.
1. Reduce your other bills
The good news is that reducing your monthly bills is possible without sacrificing your standard of living. If you’re looking for more cash at the end of each month to save, invest, or pursue a particular interest, it’s possible to free up some of what you’re currently spending. Here are some of the ways to make it happen:
Switch insurance carriers
Let’s say you switch your auto insurance from one company to another. Studies show that consumers who switch save around 19%. You could save even more if you have a better driving record today than when you were first quoted insurance rates. Remember to take advantage of every insurance discount you’re eligible for.
While you’re at it, collect new quotes for homeowners insurance. You may be overpaying there, too.
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