Downsizing your home means moving into a smaller house than the one you’re currently living in. However, it comes with a lot of financial and emotional impacts. Unfortunately, many people don’t know how to downsize, even when they know it’s the right thing to do.
To many, downsizing is a very stressful moment, but it doesn’t have to be that way. To some people, a large and elegant home is a status symbol they wouldn’t want to let go of quickly.
Downsizing has many benefits and gives you more freedom with your money. Moreover, it’s an excellent idea when you’re straining to meet your bills. Gone are the days when downsizing was only for empty nesters; today, younger people, among others, find the idea worthwhile.
So what are the financial benefits of downsizing?
Reduced Home Payments
If you are currently renting or paying the mortgage for your home, moving to a smaller one means that the cost will drastically go down depending also on the location and size of the new house. In addition, the savings you make can pay other bills or go into a savings account, securing your future.
Note that as you move to a smaller house, it means that you’ll have to sell or give away some of your belongings to only shift with what can fit into the new place. If you’re finding it hard to give away or sell some of your valuables, think of getting self storage units to use for as long as you need to safe-keep your possessions.
You’ll Be Paying Lesser Maintenance Costs
A large house comes with higher expenses and not just the mortgage payments. It takes more money and effort to maintain the home, and sometimes the cost can quickly add up to more than you can afford.
For instance, a large home needs more effort to clean, clear the yard, and maintain the roof and appliances. Most of the time, you may find that you cannot effectively clean on your own because it takes a lot of your time or it is too much work, making you hire a professional cleaner.
Moving into a smaller home means that you can do most of the maintenance work fast, and it doesn’t take much effort. As a result, you save a considerable amount of money and keep a well-maintained home in the long run.
You’ll Be Paying Less for Utility Bills
A bigger home comes with higher utility bills because it takes more energy to cool or heat. Additionally, you’ll be using more water and electricity to run the house efficiently. A larger home also has more light fixtures such as bulbs and bathrooms, and appliances that use more energy.
On the flip side, downsizing your home means you run on reduced energy and that your utility bills will considerably go down, adding up to the savings you make every month.
You also don’t have to invest in a lot of valuables because you have limited space. It means that you can’t just buy anything you want but have to consider the available space first. Consequently, you end up saving money as your shopping trips reduce. It also enables you to simplify your life and not hold possessions in high esteem.