The bigger they are, the harder they fall. Isn't that the truth.
Most of us are old enough to remember the housing crisis back in 2008 where very large financial institutions either needed bailing out or just folded all together. Why? Because they were over-leveraged and didn't have a plan b in place pending a large, unforseen event occured.
Couldn't the same be argued for most of us in terms of the houses we own or rent? Over-leveraged with no plan b.
It's true that most of us aren't owners or bigwigs working at large financial institutions. However, is it plausible that the same case could be made for most people's largest expense? Their home. What if your source of income gets greatly reduced, or even worse, just vanishes. What is your plan b?
Hear me out. It's safe to say that there is a dollar figure tied to each square foot of your home. Don't you agree? Here are some examples:
- The price per square foot
- The interest paid per square foot
- The overall insurance cost per square fo0t
- The maintenance costs per square foot
- The heating/cooling per square foot
There are many other factors that go into the ongoing costs per square foot in a home, but the list above helps give you the idea.
We are living in uncertain times, most of us would agree with that. So then dosen't it seem logical that decreasing our home's footprint and dramatically lowering the square feet we are responsible for, will in turn decrease the financial footprint of our home's associated expenses?
So if we downsize our home and the expenses associated with it, that will in turn assist us decreasing the uncertainty of our finances in uncertain times. Negate the need for a plan b.
Less square feet = Being less susceptible to the world's uncertanties
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