“The Big House”

In the early 2000’s I built a 5,000 sqft. house, in a great neighborhood, with great schools. It had a 3-car garage, full walkout basement with 9 ft ceilings, guest suite, master suite with a separate sitting room, all on 2.5 acres.  After moving in, I finished the basement with a movie theater, 10-ft bar, home gym, poker room and a full bathroom.  My kids loved that house and so did I.  That house was my masterpiece!

However, what I learned from owning “The Big House” was, the bigger the house, the bigger the expenses.   

I learned, pretty quickly, that a self-propelled 21-inch lawnmower is no match for 2.5 acres of tall grass and stubborn weeds.  After spending an entire Saturday trying to tame those 2.5 acres, I knew that there was no way that I could handle this on my own, on a regular basis. Time to hire a lawn service. $$$$$

With 2 toddlers in the house, making a mess in every room, you begin to think to yourself, “who’s got the time to clean The Big House?”  Time to hire a house cleaning service. $$$$$

Then you walk out to the street, turn around, and look back at your brand-new house and realize that your house looks naked, without any landscaping.  Time to hire a landscaper. $$$$$

Standing there you also notice that you can see everything in your house, including your naked 2-year-old, dashing through the house, laughing all the way. Time to hire a window treatment company. $$$$$

And as you walk back through the front door, you notice all of those white walls.  And your current furniture doesn’t quite fit your vision of what this house needs.  Time to hire an interior decorator. $$$$$

And now you have to heat and cool that beast. $$$$$

What next?!?!  Property Tax and Homeowner Insurance increases. $$$$$

You quickly join the ranks of the “House Poor”, living from paycheck to paycheck, no emergency fund, and credit card debt going through the roof.  From the outside looking in, you look rich and successful, however, it’s only a matter of time before it all implodes, and the bank escorts you out of The Big House, with the help of the local authorities.

It was a time when everyone was living well beyond their means, including me.  A time of the McMansions.  A time when anyone, and I mean anyone, could get a mortgage, whether they had a job or not.  A time just before the housing market crashed.  “It was the best of times; it was the worst of times”…Charles Dickens.

Today, there are some similarities of that 2008 market crash.  The movie titled, “The Big Short”, gives you a glimpse into what happened back then and the impact it had on many families.  It’s a “must watch” if you haven’t seen it yet.

“Understand that just because you can buy it, doesn’t mean you can afford it.  Live within your means”.