If you are looking to downsize, there are many things to consider. Downsizing is critical if your home or apartment has become too expensive or requires a lot of attention. Downsizing can take a lot of time and effort to complete, but the process can actually save you a lot of money. There are a lot of things that you have to do in order to keep a large house clean and functional.
After you downsize, you will save time on cleaning, which can then be put towards doing something more enjoyable. To learn more about the benefits of downsizing, when you should consider it, how to downsize comfortably, how to determine your lifestyle needs before downsizing and more, refer to the sections below.
Benefits of Downsizing
If you have lived in your space for a long time, moving to a smaller space can be difficult. Many times the bigger your space, the more things that you accumulate that you do not need, which can make even a big home seem cluttered.
You do not always need a large living space, especially if there are not many people living with you. There are a lot of benefits that come with living in a smaller place. For one, bigger homes are typically more expensive. By moving into a smaller home, you will probably pay less for rent or a mortgage, have lower utility costs and lower property insurance costs if you are a homeowner. A smaller home will also require less upkeep.
As mentioned, the most obvious advantage to downsizing is a decrease in what you are paying for your living space. A smaller house could even eliminate your mortgage payment altogether. If you are older or retired, downsizing can be beneficial because it means that you will have less space to look after. This can make cleaning and caring for your home a lot easier.
Another benefit of downsizing is the opportunity to get rid of things that you do not need. Living in a decluttered space has also been shown to lessen anxiety.
When Should You Downsize?
Your financial situation is one of the first aspects to consider when thinking about downsizing. If you are in the position where you can no longer afford your home, it is best to downsize. If you find yourself having to make major financial sacrifices, downsizing can alleviate the stress of keeping up with household payments. Considering the cost of your home and determining if it is worth what you are paying is key to knowing if it is time to downsize.
If your mortgage, insurance or property taxes exceed 30 percent of your net income, it is a good time for you to downsize. Overspending on a home makes it hard to save money, which in turn grants you little to no room to save and no money available for emergencies. Even if your monthly costs do not exceed 30 percent, you should still look into downsizing if you are not saving much money due to what you are paying for your home.
Another thing to consider is the maintenance and repair costs that your home needs. If they exceed 4 percent of your property value, you are overpaying and should think about moving into a place with less expensive upkeep.
Lastly, downsizing is a great option if you have children that once occupied the extra rooms in your house but have since moved out. If those rooms are no longer being occupied, it could be beneficial to move to a smaller home.
How to Downsize Comfortably
Knowing what to get rid of and what you need to keep will help you remain organized during your move to a smaller home. It is important that you make this decision before trying to downsize.
If you have adult children that do not live with you, it is best to make this decision to downsize right when they move out instead of when you are nearing retirement.
Next, when packing up your closet, make sure you are not bringing clothes and shoes that you no longer wear anymore, especially if you already have more items than your closet can hold. If there is not enough space for these items before you downsize, there is a high possibility of the closet space being more limited in your new home.
Another thing to get rid of is outside storage. Storage units usually charge a monthly fee. If you have one of these units, you are likely paying fees to keep items that you probably will not use ever again. Getting rid of these items will help you save more money each month.
Another way to save money before moving is to sell any cars that are not used daily. If your family has more than one car, but mainly relies on one car, consider selling the other. If you are not ready to downsize to one car, trading your vehicle for one that is less expensive is also a good idea.
How to Determine Your Lifestyle Needs
When downsizing, it is important to know what you can and cannot live without. For example, if your large home is where many family events take place, you may not be able host functions in a smaller living space. If this is the case, downsizing may not fit into your lifestyle. You can determine your needs by deciding what is important to you. If you enjoy working out every day, consider a gym membership, opposed to having space for a home gym. Ask yourself questions regarding how much you space actually need in your home for your kitchen, living room, basement and more. These considerations will determine whether or not downsizing makes sense for you. It is important to keep in mind that downsizing is not downgrading from the home you currently live in. Before moving into a new home, be sure that it fulfills your financial needs as well.