How to Downsize Successfully

How to Downsize Successfully

One way of cutting costs is to downsize> your home. However, downsizing to a smaller space has its challenges, but adopting a strategy can help to make the transition easier.

Benefits to downsizing

Living in a smaller home will simplify your life. There is less “stuff”; there is less area to clean; a small home is cheaper when it comes to maintenance and your energy bills.

There are other financial benefits. If you are selling your current home, you can take your equity out and pay down debt or put it in other savings. A less expensive home will likely mean better cash flow because of lower mortgage or rent payments, which will help your budget out.

How much house is “enough”?

Decide how much space you really need. What rooms to you use every day? Are you really just using other rooms for storage? How will being in a smaller home impact your privacy or your sense of personal space? Be aware of this before you make the leap.

How to pare down

Organize your purging into three categories: garbage, donate and sell. With the items that you can sell, you can raise cash to buy new things for your new place instead.

When you decide to downsize, immediately begin to purge your belongings. This can be easier said than done. Not only will having less stuff help you get organized, it will make life easier when it is time to move.

Don’t make the mistake of associating your identity with your stuff. Start in rooms that are further away from where you do most of your “living” (i.e. the garage, basement or attic). It may be easier to start purging seasonal items that have been put away anyways. If you haven’t used something in a year or more, then it is safe to say that you can get rid of it. Don’t have duplicates of things either.