Showing posts with label downsizing in retirement. Show all posts
Showing posts with label downsizing in retirement. Show all posts

Friday, April 3, 2020

4 Times When It's Financially Smart to Downsize Your Home

Many people who are going through a financial struggle, don't tend to think about their living arrangements. They think that because they have a house loan that they're unable to switch. The truth is that downsizing to a smaller home is a great financial move in these types of situations.

You Get A Job With Lower Pay

Whether you've been let go of an old job or simply have decided that your passion is in another field, taking a job with a lower pay maybe something you've decided to do. Along with a lower paycheck comes a smaller budget. Downsizing to a home that has a monthly payment that you can afford is a necessary option to keep your finances in order.

You've Gone Through A Divorce

If you've been through the long-drawn-out process of divorce proceedings, you may fret at the thought of undergoing more paperwork for a mortgage. However, the reality is that without two paychecks supporting the mortgage, you may not be able to do so on your own. 

Even if you can, you may find that you don't want to commit that big of a portion of your paycheck to your monthly mortgage payment. Downsizing to a smaller home with a smaller mortgage payment may be the best financial option for you.

Your Housing Expenses Have Surpassed 30 Percent Of Your Income

The U.S. Government has been utilizing 30 percent as the magic number of what a person's housing expenses should be. If you noticed that your housing expenses exceed this threshold, then it's a good time to consider downsizing. 

According to government standards, anyone paying over 30 percent for housing expenses is financially burdened. Consider moving to a luxury apartment community instead to decrease your housing cost, but still, enjoy living in a fun environment.

You Can't Afford Regular Maintenance

If you find yourself struggling to afford those costs associated with household maintenance, then it's time to consider downgrading. You don't want to live in a home that you're unable to maintain as your home will begin to deteriorate and more costly issues will inevitably crop up. Instead, move into a smaller home that allows you to afford the regular costs associated with maintenance.

Downsizing to a smaller home can be a very strategic financial move for many. The above are just four common scenarios that scream it's time to downsize. The truth is that downsizing can be so beneficial for people on a financial and mental level. It's best to take downsizing into consideration instead of pretending that it's not a possibility to enhance your financial state.

Monday, August 6, 2018

Why It's Never Too Early to Downsize

Downsizing, for some over 50 it is an act filled with dread as it seen as a harbinger of old age. But for others, the act of letting go is a sort of new-found liberty and therefore more and more people in their pre-retirement years are actively downsizing. If this interests you, then read on as there are some reasons why it is never too early to downsize.

The Case Against Procrastination

As mentioned, the act of downsizing is seen by many as a sign of aging and for that reason is it largely put off. Let’s face it, most of in our 50’s feel no different than we did in our 40’s or 30’s. Sure, we might not be as full of youthful exuberance as we were in our teens, but it's not like we feel that much older.

This is the reason why most of us put off letting go of the things we have accumulated over the years. But this procrastination can have consequences. Not only does putting off downsizing risk letting others handle the task for you, it also means that you end up spending your life in a sort of museum, instead of freeing yourself and enjoying your golden years.

Given this, it is better to go through your things and start to decide what to keep and what to let go of. Beyond this, you might even decide that some of the items you want to keep might better leave in storage for your grandchildren or some other occasion. For example, if you live in New England, then you might want to make use of a storage company in Boston to hold those items you don’t need but aren’t quite ready to let go of.

Beyond this, let’s look at how downsizing can help you enjoy your life.

Starting Early Allows You to Take Your Time

Sifting through a life’s worth of knick-knacks can be time-consuming. As such, you are better served by breaking the task into smaller bits, by starting with one room and then taking a short break before moving onto the next.

Two questions you should ask yourself along the way is whether you have used the article you are considering letting go of in the past six months, or if you will need if over the next year. Doing so will help to give you some perspective on what you need to keep around.

Beyond this, starting early means that you can have discussions with your loved ones on what you want them to do with the items you are leaving to them. This could include family photos, books, and heirloom items – some of which might have been in your family for generations.

Another bonus to downsizing in short bursts is that you can time these activities to when family members come to visit as this is a perfect time to handover items you don’t need but you want to keep in the family. Granted, you might not want to involve your guests in this ‘chore’ but prepping for a visit can give you a much-needed deadline to work towards.

Eliminate Bickering

In some cases, your kids, or grandkids, might want some of your stuff, but in other cases, they might not. As such, starting early can help you do better determine who gets what. This will eliminate the family quarrels which are bound to crop up when someone decides it is time to downsize.

The same is true when you are holding onto mementos from when your children were younger. This can lead to more winging as your kids probably don’t want 3rd place medals from their 5th-grade spelling bee. As such, letting go of these items can eliminate bickering over who gets, or wants, what.

A Little Perspective

There is nothing like rummaging through all the stuff you have accumulated over the years to help put your life in perspective. For starters, you might find things that you forgot about or you might find something that you have been looking for. As such, think of the exercise not as a waste of time but as a way to save money.

That’s right downsizing can help you save money. Not only can it stop you from buying other ‘things’ but it can also open the door to getting a smaller home and this could mean you are spending less each month on your rent or mortgage. The added plus is that you will have less space to buy even more things and this leads to saving even more money.

Embrace Your Freedom

Living a life without clutter can lead to a sense of freedom. It’s not as if you are letting go of relationships; instead, it is the clutter which ties up all the space in your home. When it comes to downsizing, remember it is never too early to start; doing so will help you to enjoy your life without worrying about what to do with all this stuff.

Friday, September 6, 2013

Empty Nest: 4 Tips For Transitioning Into A Smaller Home

If you are planning on moving into a smaller home, you are in a unique moving situation compared to most people. Space may formerly have been in excess and now it is scarce. Do not let yourself get stressed out before the process even starts. Moving can be an entirely painless process as long as you make sure to think ahead and plan accordingly for your new home.

4. Organize And Plan Your Space

The key to a quick move is knowing what goes where. That means putting stuff into boxes and labeling them. When you label don't just put what is inside the box, but where the box is going. It is recommended that you draw up a sort of rough plan, so you have an idea of how your home will be laid out when all is said and done.

3. Prepare For Downsizing

As much as you might want to bring along everything, you are not going to be comfortable in a smaller house packed to the brim with stuff. Now is as good a time as any to let go of some of those items that you just don't need. You will feel better about it, and your home will look a lot better. A garage sale is always a great way to get rid of some extra stuff.

2. Consider A Storage Unit

Storage units can be a huge asset in the moving process that people don't always make use of. You may not have the time to fully go through every single item that you have lying around. A storage unit is a good intermediary for that stuff you are not sure about. Alternately, you can simply put your extra stuff that you don't want hanging around the house in the storage unit. A tidy storage unit can fit quite a lot of different items. Consider the Storage Center to see the variety of different sizes that storage units are available in.

1. Consider Alternative Decor

Not only is the house you are moving into smaller, but it is an entirely different house. Those huge couches in your living room might be too big, but they may also just not look appropriate in your smaller sized home. Look at this as an opportunity to get a new look going if it seems appropriate. Your old stuff may actually fit in quite well with your new home. However, it will be clear to you if things just do not look right.

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