As some of you know, we are looking for a new place to live. The countdown is on, as we have to be out of our current place by the end of the month. We were looking at an apartment complex within walking distance to my work (so we could still get by with one car) but in the past few weeks they have raised their rent almost $200 per month and added in a higher security deposit! FORGET THAT!Yesterday I found another place for rent that is a bit further from my work (but along a bus route so I could take that). There was a one bedroom condo advertised but when I called to inquire, the gentleman told me that the one bedroom is likely going to be taken this week by the couple that is living in the studio condo he owns. They just found out they are expecting and want a slightly larger place. He asked if I'd be interested in seeing the studio. Wow, wait a sec, a studio?!? Hmmmm... I hadn't given that much thought. Could we maybe move into a studio for a year or so while we try to pay off our debt?
We are currently living in a 1325 square foot condo and we pay $1375 per month. The studio condo for rent is 525 square feet and only $795 per month! Wow, the rent really grabbed my attention. I decided I wanted to see it. I had a coworker go with me at lunch yesterday to check it out. I texted my husband to let him know I was viewing a condo that was only $795 per month! I conveniently didn't mention it was 800 square feet smaller than where we currently live. I just kept mentioning the almost $600 savings per month, that we could put right towards our debt!
I viewed the condo and yes, it's small. There's no getting around that. Yes, it's on the first floor, which I swore to myself I'd never live in again (I'm hyper-sensitive to sound). But, HELLO, did you hear that we could save almost $600 per month on our rent?!? I went home and discussed it at length with my husband. The biggest thing holding us back is our furniture. We naively purchased very large house type furniture when we moved here 4 years ago because we lived in a huge place. We didn't think much about what we would do if we had to downsize. Now we have to figure it out. Do we sell our large, comfy furniture and purchase studio sized stuff instead? Do we only move in what fits and put our excess furniture in storage for a possible larger home in the future? (This is an added cost that I'd rather not pay...)
Quickly playing around with this new possible budget, we're able to move our credit card debt repayment schedule up significantly! (I'll share details in a later post). So, what did we end up doing? We applied for the studio condo! We should find out today if we are approved. We'll figure out what to do with the furniture as it gets closer. We are serious about getting out of debt and in order to do that we are willing to sacrifice our comfort somewhat. I'll keep ya posted on how this all works out!
Questions : How much would you downsize to pay off debt faster? Have you done this before? If so, how did it work out?
I think this is a great idea. I think you will be surprised by little space you need to live comfortably.
ReplyDeleteI am torn between selling your furniture and keeping it in storage, both options are viable. With that much in rental savings you could afford to get a storage space, but selling it would give you even more quick cash and you wouldn't have to worry about another monthly bill.
Yay! I was totally voting on the studio apartment. I hope the bus works out for you. I'm so excited for your guys and can't wait to see how much faster you're going to knock down that debt!
ReplyDeleteLiving in a studio you'll also be able to buy so much less stuff.
ReplyDeleteI say NO WAY on keeping your furniture in storage unless you've got someplace to keep it for free. Sell what you don't need. Furniture is totally replaceable and by the time you get a bigger space you may need completely different stuff.
Here is my take. One really does not need a lot of space unless they feel suffocated. As for the furniture, if you sell, you may not be able to get another set for a while. How long will you be there? And also, storing furniture could damage it or have the risk of it being stolen. You need to look at the bigger picture to determine if the cost of the storing the furniture will pay off. It is wasted money in my opinion.
ReplyDeleteSounds like a good move - downsizing could be the start of a new faze in your lives. You'll have to reset your budget (which will be fun) so don't forget to let us all know how much time you can slash off your debt free date?
ReplyDeleteGood for you! I would do the same thing. I've lived in a small condo for years and have bought a house (1000 sq ft) to retire to. Plenty of space. It's what's outside that I'm more interested in. I think you'll have great fun. Quick - have a yard sale!
ReplyDeleteI think it's a great idea! I'd sell the furniture and throw it at the debt as well.
ReplyDeleteI am with you, I just applied for a 390 square foot studio! Yayyy downsizing!
ReplyDeleteGood for you! I haven't been able to bring myself to do the studio thing, but I admire you for it! If you have relatives who can store the furniture, I'd do that. If not, I'd probably sell...unless it was the furniture of my dreams, then I'd store it. Let us know what you decide!
ReplyDeleteI am for it, as long as you don't think the small size will put a strain on the relationship with your husband. =)
ReplyDeleteI wish I could do the same. Maybe I will when my current lease is up. Though I hate, hate, hate, hate moving. =)
I am right there with you! We were paying about $1500-1600 for a 750 sq foot one-bedroom apartment. We downsized to a loft and we're still only saving about $300 a month, but for us $300 was huge! we feel like we have a lot more leeway right now with saving. Although our goal is to save up for a house, so we're willing to sacrifice for now.
ReplyDeleteThanks for all your feedback. It sounds like most of you recommend selling the furniture off. We're still deciding. I'd like to take what we can (even if it means things may be tight) and sell off what we know won't fit so we don't have the additional cost of storage each month. I'll definitely update you guys with what we decide to do as well as our new debt repayment date once it's all calculated out!
ReplyDeleteSounds like a good move - downsizing could be the start of a new faze in your lives. You'll have to reset your budget (which will be fun) so don't forget to let us all know how much time you can slash off your debt free date? http://howtopayoffdebt.us/
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