For Real Thursdays - Housing Decisions

We moved into a smaller house than our family needs for a reason; to stay motivated enough to eventually build a log home debt free. It also was cheaper than most places around so we figured we could save more money to build by renting this cheaper, smaller house. Now don't get me wrong, we did not move into a fixer upper or anything of that sort. We were totally blessed to find a nice home at a great price. The problem we are having right now is that we are busting out of the seams of this small house.

So what do we do? Our options are stay and downsize BIG time, or find something that may be bigger and more accommodating for our family but also cost more. I mean we did pick this place for a reason. The issue is that people's moods aren't at their best when the house seems out of order and there's no room to get around without stepping over or moving something. Some things I can easily get rid of, others are necessary to hang on to. So I wonder, even after downsizing are we going to have the room we need to keep our home a peaceful place that our family enjoys living in?

When we first moved in we had no living room furniture, no dining room furniture and only mattresses on the floor in the boys rooms. Since moving here we have gained all this furniture that we need, but now the house seems so much smaller. We are also starting our family business and needing a place to work (ex. packing boxes for shipping, having a quiet place to make phone calls and work with orders).

So what do we do. We really don't want to end up buying something that is going to put us in a 30 year mortgage. We really do want to build debt free. And right now, we have the BEST landlords ever.

Any suggestions?