Downsizing your home can be a great way to save money, reduce your monthly expenses, and free up time for the things that matter most. Reducing staff can increase your cash flow, lower your utility bills, and reduce the time you spend on maintenance and upkeep. It can also help you pay off debts and fund retirement or college tuition. In this comprehensive guide, we'll explore the advantages and disadvantages of downsizing, plus provide tips on how to reduce the size of your home efficiently and live clutter-free.The main advantage of downsizing is that it can save you money.
Home-related costs, such as insurance, property taxes, and interest payments, increase with the size of your home. By buying a smaller home, you'll save on heating and cooling costs and on overall home maintenance. If you end up needing a new roof, for example, a smaller house will prove much less expensive than that suburban mansion. All the money you save will help fund your retirement or your child's college tuition and pay off your debts.A small home is also easy to maintain and requires much less time, energy, and effort to stay clean and organized.
This frees up our schedules to dedicate ourselves to the things in life that matter most. Moving to a smaller home saves time and time saves money. Dozens of online resources suggest that we shouldn't spend more than 28 percent of our net income on our monthly mortgage payments.Wouldn't we feel less stress if we were only 15 percent of our income in debt? Maximizing our debt-to-income ratio in a home is a recipe for disaster. Your mortgage is usually your biggest life debt and probably the No.
1 reason why people are in debt.Since there are many reasons to reduce the size of your home, we've created a guide to help you learn how to reduce the size of your home efficiently and live clutter-free. We've put together more than 10 tips on how to reduce the size of your home, plus specific tips for older people looking to downsize and maintain a tidy lifestyle after moving.Moving out of a larger house forces you to remove the belongings you may have been accumulating. It also means less time spent cleaning and maintaining the property or garden. The reduction in staff forces you to dispose of your extra baggage, literally, and you can always resort to self-storage units if your treasures need to arrive.Downsizing to a smaller home can be a real opportunity for those looking to save money and enjoy the capital freed up from the sale of their home.
Denaye Barahona, founder of Simple Families, a blog, podcast, and community dedicated to helping families thrive through simple living, recently downsized her own home. People who are going through a divorce may no longer need a large home without a full-time family, and it is cheaper for them to downsize to a more affordable home.But many enjoy the benefits of reducing staff with a “full nest” who seek to simplify their lives, free up time, and yes - save money. If you plan ahead and reduce your workforce five to 10 years before you retire, you can save thousands of dollars each year.Some always intend to reduce their size but may be surprised by the amount of things they have accumulated over the years in their homes. If you decide that downsizing is for you, Reader's Digest Property offers a simple way to sell your property quickly.Downsizing has its disadvantages too.
The main disadvantage is having less space for guests or having to dispose of belongings to fit in a smaller space. Reducing staff may not be the right option for everyone but it's worth a look if you want to save money and reduce your monthly expenses.Victoria Araj is a section editor at Rocket Mortgage and held positions in mortgage banking, public relations, and more during her more than 15 years with the company. He has a bachelor's degree in journalism with an emphasis in political science from Michigan State University and a master's degree in public administration from the University of Michigan.Downsizing your home is a step forward - if you think less space is the right choice for you - you're not alone! We hope this guide has helped you understand how downsizing can benefit you financially as well as give you more free time for yourself.