Deciding to move you and your family into a home with less space should not be made lightly. Take your time to think over every aspect of the move because it’s not simply a question of storage space. Downsizing means changing your lifestyle entirely. Yet the benefits can be well worth it if you do it right. With the right planning and soul-searching.
Financial Benefits of Downsizing
- Lowering your mortgage. The smaller your house is, the less you may be spending for mortgage payments each month.
- Slashing your debt. With less of your income being directed to your home, you’ll be able to pay student loans, car payments and other debt much faster.
- Boosting your retirement. You’ll also be able to put more of your money into your retirement plan when your mortgage payments are lower.
- Eliminating your mortgage. Buying a smaller home could mean that you can say goodbye to a mortgage altogether. This is especially true if you’re able to spend the money you made selling your old house on the new one.
How to Get Started
If you believe the time is right and downsizing makes sense for you and your family, here are some steps to simplify the process:
- Get everyone on the same page. If you share your home with anyone else, make sure they understand the goals and practicalities of downsizing. A little conversation can prevent a lot of fights later.
- Make everything multipurpose. The best way to prevent clutter is to ensure every space and item in your home can serve more than one purpose. Buy furniture with added storage space or use a fold-away desk to turn your living room into a home office.
- Talk to a professional. Realtors can help you make the most informed decision when it comes to finding the smaller house of your dreams. They also can make it easier to know you’re getting the most value out of your existing home when you put it on the market.