To download a printable version of this transcript, click here.
 
 
iQuestions Faculty, Ron Blue 
 
 
Question: 
 
How big of a house is it all right for me to buy? 
 
Answer:  
 
One of the biggest mistakes I see is the house people decide to buy. 
People typically tend to overbuy on their houses, not understanding 
that along with the house that you buy, you’re buying a lifestyle. So, if 
you buy a house in a neighborhood that requires you to send your 
children to private schools, for example, or that has property taxes 
and utilities that are higher than down the street, it’s going to cost you 
more. 
 
I think that the best way to buy a house is to sit down and figure out, 
realistically, what is a total lifestyle budget you want, and then allocate 
the amount you can afford, in terms of a mortgage.  
 
There is a misconception that the bigger the house that I have, the 
better off that I am. I would suggest to you that is not the case, that a 
house is a place to live, and it is never an investment. An investment 
is something you would sell when it goes up in value. You don’t sell 
your house when it goes up in value. You buy a home and you live in a 
home as a place to have. You buy a home and you live in a home as a 
place to raise a family, to generate a lifestyle, and to do things that 
are non-financial. It is just a tool you have, in terms of your total life.  
 
To download a printable version of this transcript, click here.