photo credit: Mc Morr
When I look at our household bills, the set bills like the Council Tax, Mortgage etc, I realise that our house is too big. Without moving, none of these expenses can be reduced. I don't regret buying the house, and it's not massive by any stretch of the imagination, however it's too big and too costly.
Annual Costs:
- Mortgage £10,344
- Council Tax £1,221
- Water Rates £361
- Insurance £290
Variable Cost:
- Gas/Electric £1,452
Now as you know I'm working on the gas and electric bill, however this can only be reduced so much. The other costs are all set. I cannot reduce any of them. Now we are not moving, it would be silly to try in this current climate, however the fact that the mortgage accounts for approximately 25% of our net income bugs me.
In 2006, when we bought the house, I had a totally different mindset to now. It hadn't entered my head that you could overpay your mortgage, reduce your outgoings, live frugally and escape the rat race. I thought the race rat and I were partners for life. I didn't realise just how few possessions I needed and just how I could trade off a big house for a better lifestyle. Reading books like Your Money or Your Life and reading blogs has really opened my mind to the possibilities out there and in the future we will be buying small.Further reading:
8 reasons why smaller houses are better than big ones
7 comments:
We are a family of 4 in a 2 bed house, I suppose I'm lucky that my 2 boys can share a room and are happy to do so. I really don't want anything bigger!!
While there is nothing that you are prepared to do in respect of downsizing at the moment, view your 'too big and too costly' house as money in the bank.
As you say, now would not be the time to sell, but by the time you're ready to Move To Portugal, the housing pendulum hopefully will have swung the other way and a bigger house will net you bigger profits.
Great post.. Thought provoking! We are absolutely going smaller when we move!
I am really enjoying your blog and since I discovered it I have really started to think about how much money we waste.
We live in a big house but if it was in England we just couldn't afford to run it, it is so expensive to live there.
This week I reduced my shopping bill from €120 to €85
You said that you turn off ALL electric sockets at night, does this include fridge and freezer etc?
Racheal x
sharon,bigger = more cleaning so two beds is good :)
j1mbo, lets hope so!
apieceofwood, thanks, so will we when we move, small is beautiful :)
racheal, the fridge and freezer are all that stay on!
Well done on the grocery reductions.
I know what you mean about the costs in the UK, way too expensive.
Thanks for the mention as further reading MTP!
Cheers,
Peter
Hi. Enjoyed your post and totally agree. I moved to a bigger flat and now I have space that I don´t use, for example, the small WC.
I agree with J1mbo, maybe your actual house was a good investment. In the past years house prices have risen and not the contrary.
I loved the small house, with wheels and everything. A movable house must be great. For us it had to be just a big larger, considering our proportions :)
How´s your girl doing in the capital?
Cheers.
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