Posts Tagged Debt Free

The True Cost of Divorce

divorce

Divorce is a really nasty thing to go through, there is no doubt, the emotional wreckage that it leaves is tremendous. I have talked some about the financial toll it leaves as well. With an average of $15,000 in legal fees alone, you then also lose half your assets or more. There is the kids, the house you worked hard to build, the relationships you built with your spouse and their families and friends. It’s a nightmare. But here is another toll of divorce.

Divorced households annually consume 73 billion kilowatt hours of electricity and 627 billion gallons of water more than they would if both partners were still living under one roof, costing an additional $10.5 billion each year.

Age at marriage for those who divorce in America
Age                                    Women             Men
Under 20 years old      27.6%             11.7%
20 to 24 years old         36.6%            38.8%
25 to 29 years old         16.4%            22.3%
30 to 34 years old        8.5%               11.6%
35 to 39 years old        5.1%                6.5%

5 Reasons Why I Am Going Tiny

Freedom

Freedom from stuff, freedom from excess space, freedom of time, freedom from cleaning.  All of these things take time, energy, money, and resources, going smaller means these demands are reduced drastically.  You then have freedom to do what you want, what is important, what really matters in your life.  Tiny House image

Money

McMansions cost allot of money, I am sure you have noticed.  The average US house costs around $265,000.  But it doesn’t stop there!  In order for you to get into that big house, you have to get a mortgage, which by the time you pay for it; it will cost you two to three times that, so roughly $800,000.  Then add maintenance, insurance, furnishing such a large space, cleaning products, etc.

Then there is the risk that comes with a mortgage, even with buying a house that is conservative for your income, even if you save for 3-6 months of pay in case you get laid off (which 95% of Americans don’t budget for), you could still lose your home after paying it off for 28 out of the 30 years you have on it.  So factor the cost, plus risk, then consider the opportunity cost, you could be well in the hole close to 1.5 million dollars and then be left homeless.

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A Slight Departure From Our Regular Content…

I try to keep most of the content a least loosely related to Tiny Houses and Tiny Living, but I found this to be very note worthy and thought I would share. cignalogo001So today I came across these two videos about a Former CINGA Insurance Executive coming out and talking about some of the industry secrets and his comments on the movie Sicko by Michael Moore.

If you haven’t seen the movie, Michael Moore has posted the video to watch for free here.

Please share your comments and thoughts on the matter in the comments section!