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How Can I Cut My Housing Costs to Fit My Budget?

Downsize to fit your budget

You may have tried to cut corners throughout the month in order to make your budget more productive. It gets tiring when no matter what you do, it seems like there is never enough money left to pay the bills. Your total monthly costs are just too close to your actual income. A budget will not survive on bare bones alone. Living paycheck to paycheck does not leave room for any unplanned expenses.

You can only skimp so far on groceries, fuel and utilities. Depending on how much you need to cut back, you may just have to focus on your largest expense, housing. We all need a roof over our heads and security for our family. There are ways to cut back on housing costs to strengthen your budget.


– One of the first things you need to look into is refinancing your mortgage. This action will lower your monthly payment to make more room for other expenses. It is important that you fully understand the terms of the new loan. You will not want one that has a balloon payment at the end of the term or one with varying interest rates. If rates go up, you may not be saving much. Talk to a financial adviser or someone close to you who understands mortgage loans before you sign.

– Clear out a room in your home to rent. You could earn an extra $400-$500 each month.

– Move into a different place for less money and lease your current home. Your mortgage will be covered and it will cost you less for your own quarters.

– Sell your home and buy or rent one that will cost you less per month. It may be your dream home, but if the cost is too much for your budget, you need to at least consider this change.


– Look at the end date on your lease. If it is close to that date, you will want to consider finding a more inexpensive place to live. If the date is still a ways away, ask how much it would cost to break the lease. If you are saving money in the long run, consider taking advantage to opt-out of the contract.

– Consider moving in with family in order to save money and get your budget back on its feet.

– Find out if the lease allows you to have a roommate. Splitting rent and utilities will help tremendously.

Hard choices may work best for your budget

These changes may be temporary or last quite a while. It all depends on how bad off your finances were to begin with and whether or not you find a new way to increase your income.

When choosing a place to live, you want to more than just afford the monthly expense. Putting a budget together so tightly is bound to cause a breakdown at some point. You can’t control the unexpected, all you can do is be prepared for it. A savings account will help you keep added debt off your credit cards. It will also limit the risk of needing alternative high interest cash to get by.

About Holly Petherbridge

I am a Blogger, Web Content Writer, Teacher, Mom. A woman of many hats. As an elementary teacher, I had always encouraged my students to write more. I find myself falling back on my own teaching techniques to share what I know about building and rebuilding personal finances.
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