My House Is Way Cheaper Than What I Can Afford. Here's Why

Buying an expensive house isn't all it's cracked up to be.

Many years ago, I purchased a home with my husband. It's a house we've been in for over a decade, and we do not plan to sell it anytime soon. It also has monthly payments that are well below the amount I could afford to pay.

I'm happy with my cheaper house for a lot of reasons, and I'm very glad I made the decision to opt for a house that had a substantially lower cost than the amount my bank would allow me to borrow for when I applied for my mortgage.

There are four big reasons why I believe my choice was the right one, and why I don't think I'll ever regret buying less house than I could afford.

1. Low housing costs allow me to do other things with my money

Since I do not spend a lot of money on my house, I have plenty of cash left over to do other things. I can invest more for retirement, put more money into my savings accounts, and have more money left over to travel.

The ability to use my cash for other purposes besides sinking it into an expensive house means I will be in a better financial position in the long run -- and I can enjoy spending more on the things I love.

2. I don't have a lot of financial stress because my house is affordable

If I had a more expensive home, I would have to worry more about maintaining my income at a high level or about making mortgage payments should something go wrong that necessitates a reduction in earnings for either me or my husband.

Since my house payments are affordable on just one of our incomes, I have very little financial stress. I know we could afford them easily even if we suffer setbacks -- especially because I was also easily able to save up an emergency fund to cover my mortgage payment because the payment isn't that large.

3. I have future flexibility if I need it

Right now, I work a lot so I make plenty of money to easily afford a larger home. But because I kept my costs down, I don't have to keep up my same busy schedule for 30 years until my mortgage is paid off. If I decide I want to cut back or even take some time off, I should be able to do so because my mortgage payments are very low relative to my income.

4. I don't get stuck with other high costs that come with an expensive home

Finally, by buying a cheaper house than I could afford, I was able to keep all of the other costs associated with my house down as well. My house is smaller than it could be, so my utility payments aren't very high. My property taxes are also lower than they would be with a more expensive home.

Since I keep all of my housing costs to a reasonable level, this also helps me minimize my financial stress. The peace of mind that comes with knowing my living expenses are well within my budget brings me more joy than a huge, expensive home ever could.