House

What makes us live within our means or push ourselves to our financial limit and even exceed it? I grew up with parents, well my mother in particular, for whom the thought of being in debt was horrifying. They never had much money (enough, but no more) and with that we had a holiday every year, an extended education, music lessons, you get the idea. They even managed to save money and during harder times have helped us out. They think it’s what parents should do. My mother told me that once (yes, just the once) they spent more than they should have at Christmas and went a little overdrawn. It took them the rest of the year to pay it back and they never did it again. For them, the idea that you can walk away from your debt is morally questionable.

I wonder how I ended up so hopelessly in debt after such an upbringing. I completely admire my parents ability to live within their means. Now, having paid off our debts (we didn’t walk away) I aim to emulate their skill with money. It’s one reason we didn’t take up the offer to increase our mortgage when we moved house. For the budget we had we could afford a house that easily fulfilled our needs. We didn’t need anything more. We have become so much more interested in doing more with life that to tie ourselves to a bigger financial burden than necessary just doesn’t make sense.

Just recently, some friends of ours have been presented with the same choice. Whether to buy an adequate house and be (almost) mortgage free, or whether to blow the budget, spend to their limit and buy a huge place. They, like us, have two children and have been living to date in a house pretty much the same as ours. It has enough bedrooms, a small garden and plenty of living space. For me it’s a no-brainer.

The question wasn’t such a no-brainer for them. In a few weeks they will be the proud owners of a five bedroom house with a large garden. No denying it’s beautiful but I wonder what price it will come at. They have taken out the biggest mortgage they can afford. They are looking for a cleaner. I have no idea how much it will cost to heat. He will need to work harder to make sure his job stays secure to cover the outgoings. I know everyone is different and that’s what makes life so interesting but it seems like a bit of a missed opportunity. The mortgage was on offer so they took it. The house was lovely so they bought it. I wonder if at any point they stopped and asked themselves what’s important. Is the house so important it’s worth pushing themselves to their financial limit? What could they have done with life, together, by living more within their means? Will the house make them happy? I hope so.