Sell the house or cut back on Luxury things???

[Amy72]

Okay... we have a really nice house with a somewhat hefty house payment. With the economy being the way it is lately my husband is wanting to sell the house so we can cut the house payment down at least $2,000 in case something would happen to his business. I don't want to move. I love our home. We have 5 kids and to move, and find a house to fit us and all of our furniture will be a pain. I think we should cut out luxury items, like trade in our cars for less expensive cars. Do away with the expensive gym membership and join a less expensive gym. Things like that.... Am I wrong or is it smarter to sell the house and hang onto our other luxury items that we don't necessarily need. Our house is already on the market. I'm not happy about this at all!

[wincrasher]

Sounds like you don't have all the information. If he's trying to cut out $2k a month, luxury items may not get you there.

You need to sit down with him and look over the numbers - "his" business belongs to the both of you and you should look at the books.

List out all your household expenses. Put everything out on a sheet of paper. How much savings do you have? How much in the business? What is the equity in your house? In the business?

It may be more dire a situation than you know.

[LivingAlmostLarge]

It depends. What are the numbers? Maybe the house has to go, maybe it doesn't.

[Bimmer]

If there is concern over the business, sell the house AND cut out luxuries.

[cicy33]

Right now is not the greatest time to sell an expensive house. and if you are paying $2,000 a month in house payments then in my book that is pricey. With 5 kids you are going to need at least 4 bedrooms. I agree with above, sit down with husband and find out exactly what is going on. If your current house still has a lot of money owed perhaps he is trying to get out from under it. If you have paid off a lot of it then I would say keep it as you will just be starting over and pay all the interest again.

[goldentraders]

Okay... we have a really nice house with a somewhat hefty house payment. With the economy being the way it is lately my husband is wanting to sell the house so we can cut the house payment down at least $2,000 in case something would happen to his business. I don't want to move. I love our home. We have 5 kids and to move, and find a house to fit us and all of our furniture will be a pain. I think we should cut out luxury items, like trade in our cars for less expensive cars. Do away with the expensive gym membership and join a less expensive gym. Things like that.... Am I wrong or is it smarter to sell the house and hang onto our other luxury items that we don't necessarily need. Our house is already on the market. I'm not happy about this at all!

we've been in this case, we sold our house and rent a flat... till there's no money left... I guess it's better to cut backluxury things than selling the house... Talking sentimental here at least it's fine to have something which you can claim your own, you know what i mean... and remind you, once you let go of something you own, you will lose what's left in just a time

[disneysteve]

I agree with the others. We'd need to see the actual numbers to answer your question. I also agree with wincrasher. If your husband is looking to cut housing by $2,000/month, that's an incredibly large number. Do you think you are spending $2,000/month on luxuries that you could cut out? My entire mortgage payment including taxes and insurance is only $1,300 so I can only imagine what you guys must be paying if he thinks you can reduce it by $2,000.

[EEinNJ]

It takes time to sell a house, especially now. Also a lot of work to keep it show-worthy. Buyers are very fussy and you may find you have to make expensive concessions to sell. So cutting back your budget will have a bigger impact sooner.
If you must move, selling you extra stuff at a yard sale is a good way to de-clutter and generate some cash. If you have expensive cars, getting less expensive ones without a payment will help your credit for getting a new mortgage.

[swanson719]

Why not just sell the business? A business isn't worth hurting your family. If you can't afford the house without the business, then you can't afford the house and do need to move. But if you can sell the business and your husband get a job in the workforce making the same income the business generates, it would be better to do that.

It's about risk management and priorities. It sounds like your husband values the business above the house - which is understandable if he built the business. You naturally value the house above the business, because it's not your business and the house represents safety and security for you and your kids. By selling the house to save the business, you aren't really saving the business. If it's failing now, it's going to continue to fail until the economy turns around at least, even with a good business model. With a bad business model, you're going to lose the house and business both.

I'd advise keeping the house and business finances separate, that way if the business fails, you're not losing everything. You file a bankruptcy on the business, not on the business and personal too. Which is why I advise selling the business and having your husband get a job in the workforce making a comparable income. If he can't get a job that will pay the bills, then you're living in too much house and the house needs to be sold. You can make due with 5 kids in a 3 bedroom, 2 1/2 bath house. It won't be fun, it really won't, but it can be done.

[unsecuredmoneygroup]

Yeah. If you're looking at a failing business and the house is lost without the business then you need to drop both for something more practical. Downsizing to a life with less luxury and more necessity is what we all have to do in times like these.

[Salmon Runner]

I highly suggest sitting down with a financial adviser

[DebbieL]

I think your husband has the right idea. I cannot even imagine how expensive your house must be if by moving to something else you could cut $2,000 from your monthly housing costs (what is it now - $4,000 or something?).

[Seeker]

Okay... we have a really nice house with a somewhat hefty house payment. With the economy being the way it is lately my husband is wanting to sell the house so we can cut the house payment down at least $2,000 in case something would happen to his business. I don't want to move. I love our home. We have 5 kids and to move, and find a house to fit us and all of our furniture will be a pain. I think we should cut out luxury items, like trade in our cars for less expensive cars. Do away with the expensive gym membership and join a less expensive gym. Things like that.... Am I wrong or is it smarter to sell the house and hang onto our other luxury items that we don't necessarily need. Our house is already on the market. I'm not happy about this at all!

2k a month is equivalent to 24k a year. Getting rid of luxury items and buying "less expensive" is one way to approach the loss, but can that net you 24k? And then what about next year?

You have a large family and nobody in these times are "happy" about the reality of the economy.... but you have to be realistic too.

Sit down with your husband and look at the numbers.

What happens if his business goes down entirely?

Having 24k freed up even one year can probably feed your family for a good 3 - 4 years.

[wnlbutterfly]

What is the house payment? Are you wanting it $2k LESS, or around $2k total?? That makes a big difference here. If it is the latter and your house payment is $2,800, then you are looking at $800 a month to cut back on, that is doable. If it is $2,800 and you want to drop it by $2k, then you aren't going to get something for $800 (which would lead me to assume the payments are SKY HIGH).

How do you end up with your house on the market if YOU aren't happy with that decision and doesn't sound like maybe you know the full picture. We need more info to be able to help with ideas. But let me tell you that our house wouldn't be on the market unless it was a decision we made together.

[Seeker]

How do you end up with your house on the market if YOU aren't happy with that decision and doesn't sound like maybe you know the full picture. We need more info to be able to help with ideas. But let me tell you that our house wouldn't be on the market unless it was a decision we made together.

Yup, and buyer beware; if the title is held in joint for this property and one of the joint does not "consent" -- a potential buyer would be well advised to "steer-clear."

As the wife I'd be trying to figure out what's going on, not only in husband's "business" -- but what's happening to every cent. Something may not be right.