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It’s easy to associate the wish to downsize your household with a reduction in living standards, but that doesn’t have to be the case. Sure, if you’ve lost a job, are going from two incomes to one income, or are just financially planning for uncertain times, then sometimes limiting your outgoing costs and tightening the proverbial belt a little can help.
However, it’s also important to recognize that for the most part, downsizing doesn’t have to be a difficult experience. Perhaps it can feel freeing, to let go of some of the accumulated junk that surrounds us. Maybe your children have moved out now and you have no real reason for keeping your household with as many bedrooms as it has, and you can stretch your retirement further if you just rest and see what options are on the table.
In this post, we’ll discuss how to effectively downsize a household, and hopefully give you more options to save money going forward:
Consider Consolidating Your Number Of Cars
You might not wish to have fewer cars on your drive, but if you no longer need them, there’s no reason to keep paying for their upkeep. That can be especially true if remote work has become the norm in your house, or your kids have moved out and no longer need their own wheels. It’s worth thinking about how often each car is actually being used, and if one usually just sits idle most days, that could be a decent sign it’s no longer needed.
As such, letting go of a second or third car could free up quite a bit of monthly budget, and there’s the added bonus of simplifying your life. You can sell of a car or two, and perhaps purchase one multi-purpose runner from Gibbs Car Sales or another useful used cars service. This way you can be certain you’re operating to the budget you have and not trying to overdo it all.
Sell Off Old, Unnecessary Furniture
Downsizing often goes hand in hand with decluttering, for obvious reasons, but it’s a good chance to make money. If you’re moving into a smaller home, chances are that bulky furniture pieces won’t quite fit the way they used to, and so you may have the chance to start fresh. It might be time to get rid of the old furniture you didn’t have much sentiment for.
Selling furniture online has become easier than ever, and even if you’re not aiming to make a profit, donating to local charities or giving pieces away to friends can feel rewarding too. We’re not suggesting to strip everything back to the bare bones, but rather to keep the items that serve a purpose and bring some kind of joy. Everything else that could be taking up space without offering much in return could go. It’ll certainly help you reduce your the unnecessary items around your daily comfort and living.
Move To A Smaller Home
This is probably the most obvious part of downsizing, but that doesn’t make it any less important. Moving into a smaller space can come with all kinds of financial advantages, from a lower mortgage or rent to reduced utility costs. There’s also less space to clean, less home to maintain, and fewer things demanding your attention. It doesn’t have to feel like a loss.
In fact, smaller homes can be incredibly cozy and functional, especially when they’re thoughtfully laid out. And in many cases, a move like this opens up options that weren’t available before. Maybe you could relocate to a neighborhood you’ve always liked but couldn’t afford when buying something bigger. Or maybe this change lets you pay off debts faster or build up savings at a more comfortable pace. Downsizing the home can often be the step that makes all the other pieces fall into place.
Restructure Your Finances
If downsizing is somewhat motivated by financial pressure, then it’s a good idea to look a little further than just housing and possessions. Taking a closer look at things like monthly subscriptions, credit arrangements, and the bills you’ve meant to be free from for some time can often reveal places where small changes will have a longer effect, without hugely limiting your approach. It’s fine if you just start small in taking stock and seeing what still makes sense.
This might also be a good time to speak with a financial advisor, especially if you’re planning for retirement or managing a change in income. Sometimes you just need new priorities to work more capably. The peace of mind that comes from knowing you’re on steady financial footing tends to be well worth the effort it takes to get there, especially if you’ve had a big change like a child moving out.
Consider Your Needs Vs. Wants
Over time, it’s easy for “nice to have” items to become part of the routine without much thought, which is why we all have storage cupboards with items we’ve forgotten about for years inside, or perhaps an attic with items we had assumed would be used forever, but haven’t been. Maybe your extra freezer in the garage used to be essential when the house was full, but now it just hums along and doesn’t really freeze as you’d like it to. You may have extra linens that haven’t been used since a guest last stayed three years ago.
Downsizing gives a reason to pause and ask whether things still serve their purpose or if they’re just lingering out of habit, to sell them on, and to give you more space so if you do go smaller, you have something more comfortable to work with.
With this advice, you’ll be certain to effectively downsize a household, but on your own terms this time. It’s not the easiest task out there and really causes you to question the fundamentals of why and how you live, but like a thoroughly refreshing shower, you’ll only feel lighter, fresher and more free for having gone through it. Good luck!
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