First published: 29 April 2021 @ 5:11 pm
Home is where the heart is… and the wallet. It’s true: we’re all a little more emotionally invested in our homes than we are with other purchases.
It’s why we love our homes and get so attached. But sometimes, we forget that we shouldn’t get so attached to our homes that we’re paying way more than we should be for them.
How do you know if you’re paying too much for your home? Take a look at these signs. You’re paying too much for your home if…
1. You’re overpaying on your mortgage
You’re overpaying on your mortgage if you’re paying more than you can afford. This is the number one sign that you’re overpaying on your home. If you’re not sure how much you can afford to spend on a home, take a look at the mortgage calculator on our finance page to get an idea of what you can afford.
2. You’re not saving for an emergency fund
Life throws curveballs all the time, and you never know what might happen. It’s important to have a little nest egg to fall back on in case of an emergency. But how can you do that when you’re paying more than you can afford for your home? You can’t. But you can still save by cutting back on non-essential spending.
3. You’re not saving for retirement
If you’re paying more than you can afford for your home, you’re not going to be able to put money away for retirement. That’s because a home is a major expense that takes up a lot of your income. If you’re paying more than you can afford, you won’t be able to put much away for retirement.
4. You’re not saving for your children’s education
If you’re not saving for retirement, chances are you’re not saving for your children’s education either. It’s going to be even harder to put money away for your children’s education if you’re paying more than you can afford for your home.
5. You have a lot of high-interest debt
If you’re paying more than you can afford for your home, you’re probably also paying a lot of interest on your credit cards or other types of high-interest debt. This is going to keep you from saving a lot of money because you’re going to be paying down your high-interest debt instead.