How Downsizing Your Home Could Save You Money
While you might think living big must also mean a larger house, this is not actually the case. Downsizing your home could help you save money in the long run, and here is why.
A smaller place to live actually means you can give up some storage space and live more simple. You may be surprised at all the money you are spending for storage that is not even needed. Make some calculations to get a clear idea of the size of your current home, as well as how much you are paying for it. How much of it do you use solely for storage? Once you realize you don’t need all the extra space, you can get rid of some unwanted items and move into a smaller home. You might even be able to cut down on health care by living in a cleaner and decluttered space.
Downsizing also means less money spent on utility bills. The bigger a home is, the more heating and cooling systems cost. In addition to saving on bills, you will also help the environment by consuming less energy.
Mortgage payments are another area where you can save money once you downsize. Buying a smaller property could save you hundreds of dollars on month, which mean you can spend more on your hobbies.
If you own a home means you are also paying taxes for it, and the bigger a house is the larger the sum. Calculate your budget to see how much you would pay if opting to downsize your home.
Having a big garden may have seemed like a good idea years ago, but the money invested in maintaining it could be used in another area of your life. Choosing a smaller but well kept garden will help your budget as well as time.
If you don’t use your garage much, it probably became a storage place. Go through the items you keep in there and donate the ones you don’t need. Once you do this, you can downsize your garage and save some money, especially if you don’t own more than one car.
Consider the future
While downsizing might save you money, make sure you will be comfortable in a smaller home. If you don’t plan on expanding your family anytime soon or start a new business, moving into a new and smaller home could be the right choice.
Evaluate your costs
Even when you are certain you want to downsize, take into consideration all the hidden costs that moving out entails. You will have to pay taxes, take care of papers, and find a suitable new owner for your current home. Get a professional estimate of how much everything will cost in order to make the right call.
Pay off your debt
If you find your debts constantly increasing, it might be time to scale down. Selling your current home and purchasing a smaller one will help you save money to pay off your debts and rearrange your life. Selling old collections, clothes and pieces of furniture before moving out is a good idea as you will get some money back.
Save for retirement
Saving up for your retirement fund should be an incentive, and downsizing might be the answer if you are close enough but need that extra boost. Saving money on your home means more funds set aside for your retirement.
Deciding to leave your old home behind for the sake of saving may not be an easy decision. However, once you realize the benefits of moving and find a suitable new place, settling into your new life could prove quite rewarding.