In a world fixated on buying more and bigger things, a new trend is rising. Downsizing is growing in popularity for a number of reasons. The biggest reason being people want to live a more financially stable lifestyle. Almost 8-of-10 working Americans are living paycheck to paycheck. Americans also die with an average debt of 64-thousand dollars.
If you are on the fence between downsizing your home or waiting for that next promotion to remedy all your financial woes, here are some things to consider:
Smaller Doesn’t Mean Worse
It is common for homeowners to have a negative impression of downsizing. Naturally, if you are selling your home for a smaller one, you are going to feel like you are downgrading. If you can put emotions aside, you will come across major benefits to living on less.
Bigger is not better. Smaller homes, especially newer ones, come with a great deal of luxury that homeowners are seeking—for example, a large granite kitchen island.
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Smaller homes require less time and money to maintain. From the utilities to maintaining the yard and even the day-to-day cleaning throughout the house, these burdens are cut in half with a smaller home.
Compare living expenses when selling a house.
Additional Benefits of Downsizing Your House
You can pay off other debts sooner when you are not paying huge mortgage payments.
You currently have $10,000 in credit card debt with an interest rate of 12%. If you are making monthly payments of $200, you end up paying $3,932 in interest alone during the 6 years it would take to pay off the entire debt.
Now imagine if you downsize your home and are able to reduce your monthly living expenses by $1,000. If you put just half of these savings towards the credit card debt while still having another $500 in disposable income, you could pay off the entire debt in under two years. The best part is you pay $3,000 LESS in interest. It is very easy to get caught up in a certain lifestyle without truly seeing the financial impact of a massive mortgage payment.
If bills or debt are causing stress throughout your day, you are not alone. This constant stress would take a heavy toll on anyone’s health. Rather than waiting around for something to change, taking action is what’s needed to free yourself from the stress.
What Downsizing Your Home Really Means
A smaller home is you in complete financial control—not counting down the days until your paycheck arrives or wondering if you can pay the electric bill on time.
All the time previously spent cleaning, mowing the lawn and trimming the hedges is now spent with friends and family.
The fear of accumulating debt and thinking, “I’ll figure out a way to pay for this later” entering your mind every time you swipe your credit card is no longer an issue.
Best Way to Downsize Your House
Moving is such a hassle that homeowners would rather live in debt than move into a new home. Today, however, there are simple and efficient ways to sell your house and move without losing money to commissions, fees, and closing costs. Instead of paying a real estate agent to sell your house and find a new home, seek out the company doing it all for free.