Like a number of older people I have considered selling the house and downsizing. I just discovered I can't afford to do this.
Why? Because my basic housing expenses are lower than the cost of a one bedroom apartment! I can't afford to downsize!
The place is paid off with much of the credit for that going to my wife who handled finances all the time I was working away from home.
For years since we paid it off I had ball parked about a grand a month to live here, taxes, tags, title heat, light , trash, everything.
Surprise! When I sat down for the first time I realized the $1000 estimate was high by about 20%!
Prior to a little over a month ago I'd ball park everything in my head and every so often look at the checking account balance and if it was growing I was good with that. It was a reasonably good way to figure things. The account always grew and every now and then when it got too big I'd empty most of it into a decent savings account or buy a CD.
Recently I sat down and got myself an exact figure for monthly expenses. Of course gas and electricity vary some but even in the dead of winter after the fire when several rooms had no insulation and the furnace seldom ever shut off I seriously don't think I hit close to a grand.
There's no real reason to downsize, just dig in for the duration.
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