Home is where the heart is, right? After all, the place you call home offers comfort and security, and the passing of years only makes it more special, regardless of whatever life throws at you.
And yet for many people, there comes a time when they decide to downsize to a smaller living space. This isn’t always an easy decision. In fact, it can be stressful or depressing. But it can also be a joyful process. The key is recognizing the right time to downsize.
You’ve come to the right place for advice about when and how to downsize your home. Keep reading to get the inside scoop.
1. Loss of a job
The loss of employment can be an extremely stressful experience. After all, getting laid off is typically unexpected and can make maintaining your current lifestyle impossible.
A major change in employment is one of the events in life that pushes many people to seek a smaller home that won’t be such a burden. Even if money isn’t tight, the experience of losing your job can open your eyes to the fact that every dollar matters, and it’s time to move into a smaller house or apartment that will help stretch your income as far as possible.
Keep in mind that it can be a mistake to try to hold onto a large home for emotional reasons. Downsizing will save you money and provide peace of mind so that you can sleep at night.
2. Reduced income
You might not lose your job, but you might be put in a position to take a lower-paying position. This might even be a positive. Many people choose to take a lower-paying job they love rather than stay in a higher-paying job where they’re miserable.
These are the life-choices that force people to reconsider the cost of their lifestyle. That big house and fancy cars that you love so much come with a hefty price tag. Perhaps you hate your current career but need a big salary to pay for all your cool toys. This is the perfect time to reassess your priorities.
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Downsizing doesn’t have to feel like a failure. Thus it’s important to resist the impulse of basing your self-worth on the things you own because then they actually own you instead. Once you make the move to choose happiness over stuff, you’ll discover that less truly is more.
3. Shift to minimalist lifestyle
In recent years, more and more people have discovered the joy of simplifying their lives. This is known as adopting a minimalist lifestyle.
Becoming a minimalist has nothing to do with what you can or can’t afford. And it has nothing to do with your income. It means that you’ve realized that life is about far more than material possessions, trying to impress those around you, or trying to keep up with everything society says you need to own to be happy.
Why do you feel the need to buy so much stuff? Because all that stuff will get old, start to fall apart, or you’ll eventually forget you even own it. Half the fun was just the excitement of the purchase anyway, right? So why not try getting rid of all the clutter you’ve collected over the years, moving into a smaller living environment, and learn to enjoy living your life rather than wasting money on more junk you don’t really want or need?
Another time to seriously consider downsizing your home is when you’re ready to buckle down and start preparing for retirement. After all, you’ll want to have the freedom to enjoy your retirement years without stressing about money.
Plus, you’ll want to travel, spend time with family, and do all the things you’ve put off during your working years.
Keep in mind that retirement is expensive. Thus you’ll want to sock away every penny you can so that you can enjoy the financial stability that comes with healthy investments and decades of savings.
5. When kids leave home
It’s no secret that raising a family is expensive and requires a certain amount of living space. But once the kids leave the nest, most parents no longer have the need for so much room. This is a good time to downsize and use the savings to invest in your retirement plan.
6. Moving to a more expensive area
Or perhaps you’re in the process of relocating. This can be an expensive experience, especially if you move to another part of the country where the cost of living is far more substantial.
You might have become accustomed to living in a big house where you came from, but moving to an expensive city might require reducing expenses, such as buying a smaller house that won’t be such a burden. This is especially important if your income or will remain unchanged once you’ve settled into your new life.
7. A desire to reduce expenses
Other people are looking for ways to cut the cost of living as much as possible. Because while you may love your big, roomy house, all that extra space can be painful to pay for. After all, you have to heat all that extra space in the winter and cool it during the summer months.
If you don’t expect an increase in your family income any time soon, moving to a smaller house can be the ideal way to save money without having to make sacrifices in other areas.
8. To pay off debts
Let’s be honest, debt is exhausting. Because while some debt is necessary and healthy, things like credit card debt and expensive student loans can become a huge burden.
Moving to a smaller home enables you to pay down your debt more quickly, or eliminate it altogether. The key is to lower your house payments and use the equity from the sale of your old house to get rid of annoying and costly debt as soon as possible.
9. To finance a vacation home or a rental property
Have you been thinking about buying a vacation home or investing in a timeshare property? These are exciting options that are also very expensive. This is especially true if you still have a mortgage on your current home.
That’s why you should seriously consider selling your house through iBuying to free up financial resources to invest in a second property. This could even be a situation where you invest in a rental property for generating additional income.
10. To reduce environmental impact
For other homeowners, downsizing is a way to reduce their footprint on the planet. After all, environmental issues are more important than ever before. The more you can do to help save the environment, the longer our natural resources will be available for future generations to enjoy.
Downsizing gives you the opportunity to build a smaller home using environmentally-friendly materials, take advantage of solar energy, and produce less waste.
11. Use your home equity for other investments
Do you have equity in your current home? If so, downsizing gives you the freedom to invest that equity for other investments, including your retirement fund, commercial properties, business opportunities, and the ability to invest more than you might have in the past.
Home equity is a resource that many people fail to take advantage of, and yet this is a great time to make your hard-earned money start working for you rather than sitting in a bank.
12. The desire to travel
Let’s face it, most people don’t travel the world nearly as much as they would like. This is mostly due to the restraints of time and money. So just imagine having the financial freedom to travel anywhere you want without feeling the stress of how to pay for it.
This is yet another major benefit of downsizing from a big expensive house to a more affordable one. Plus you’ll probably discover that you don’t miss all the extra space anyway. And now you’ll be able to indulge in the type of vacation experiences you’ve always dreamed of now and make memories that will last a lifetime.
13. Pay for children’s education
Did we mention that having children is expensive? Well, it’s true. Especially when they want a higher education. Given the high price of most good universities, downsizing your home might be the ideal way to finance their education without breaking the bank.
14. An effort to enjoy a simpler lifestyle
It’s also nice to enjoy living your life without worrying about how to pay for it. After all, there truly is something to be said about the luxury of having peace of mind. This is something that more and more people are realizing, and downsizing is one of the more efficient ways to simplify without sacrificing other small luxuries.
Sell your house fast when it’s time to downsize to a smaller home
Life can be expensive. Knowing when it’s time to downsize your home can help reduce stress without cutting into the overall quality of your lifestyle.
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