How Small Living Offers Big Savings
With over 8 million people currently living and working in New York City, it’s no wonder apartments and homes tend to be on the smaller side here. But this isn’t inherently a bad thing. There are definite upsides to living smaller, especially in a city where real estate prices are well above the national average. Here are a few reasons why choosing a smaller mortgage could end up saving you big time overall.
1. Smaller mortgage payments
If you choose a smaller home you are also choosing a smaller mortgage payment. Even in the expensive areas of Manhattan and Brooklyn, smaller is still typically cheaper (of course there are other factors such as location and amenities). But forgoing the larger square footage means you’ll have more extra cash.
2. More financial freedom
More extra cash that’s not being dumped into high monthly mortgage payments means more wiggle room with your income. This extra income could go towards paying off debt. Perhaps you’ve been trying to chisel away at student loans or a credit card. Choosing to live a bit cozier could allow you to significantly chip away at that debt.
3. Increased disposable income
By choosing to live small, you might also free up space in your budget for disposable income. You may put this towards savings for larger purchases or goals. You might also decide to start a travel budget or savings to start a family or a fund to send a child to college. Essentially, you’ll have more room in your finances for these other pursuits and priorities in life.
4. Minimalistic lifestyle
If you are smart, intentional and strategic in your home organization and design, you can still live comfortably in a smaller home. Multipurpose furniture such as an ottoman that is also storage or a sleeper sofa that also doubles as a guest bed. Minimize your belongings and only keep what you use regularly. Keep everything bright and airy as far as color palates and décor to help the space feel larger. Keep belongings organized and in place to minimize clutter. All these tips will help your space work for you and your needs without feeling claustrophobic.
There are so many benefits to having a lower mortgage payment. These are just a few reasons to consider a smaller place. It could free up a lot of mental space as well as room in your budget for other life pursuits.
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