Finding ways to cut corners and save a little cash here and there isn’t too difficult. But if you’re really looking to overhaul your life, consider downsizing.
Downsizing means simplifying your life and living smaller. You might be newly single, have an empty nest for the first time in 18+ years, or just want a life that’s more affordable and easier to manage. Whatever your reason, downsizing pays off in the process, as well as in the financial rewards you’ll earn.
It Starts at Home
Most people start downsizing by looking at their home and figuring out if it’s too big for them. A single person doesn’t really have much use for a big house, and if you’re a couple living in a 4 or 5 bedroom home, you might be tired of keeping up all the extra space. You could sell your home if you own, then roll that cash into something more suitable for you. If you rent, think about finding a house, condo, or apartment that offers the space you need, but puts some extra money back in your pocket.
Get Rid of Stuff and Make Some Cash
If you’re planning on moving into a smaller space, you’ll need to make some decisions. Big houses are usually filled with stuff—and lots of it—most of which you probably rarely use. Go room by room, sorting out things you want to keep, things you can sell, and things you can donate or toss.
For some people, this task is the hardest, but you’ll find that after doing so you’ll feel more organized and more peace after getting rid of the clutter. Having a big yard sale is a great way to get those unwanted items out of your home and make some money doing it.
Smaller Living Space=Lower Bills
Not only does moving into a smaller space limit how much stuff you can accumulate and keep, but it’s going to save you money on utilities as well. Downsizing from a 2500 square foot house to one half that size is going to save you roughly half of what you’re currently spending on heating and electric bills. Sock that money away and use it to pay for something more valuable to you—like taking a trip or going to a concert.
Downsize Your Car
Downsizing needn’t only apply to your home. If you’re still driving around a gas guzzling SUV, but don’t really need all that extra space, maybe it’s time to trade it in for something more fuel efficient and smaller. New cars are great because they have the newest features, including the most gas-friendly engines, but you’ll have to think about being tied down to a monthly payment for the next 5 years. The good news is that after the car is paid off, you can use it’s value to get a Plano title loan!
Used cars are a great option, because you can still find ones that are practically new, but for a much lower price and with years and years of life left in them. Depending on your situation, downsizing could take many months or even over a year to work toward.
It’s important to do a lot of planning and have some goals you’d like to hit. This will help you stick to your downsizing plan, make sure you’re doing exactly what you want, and allow you to make adjustments as needed. While downsizing isn’t going to solve all of life’s problems, it may help simplify things a bit more and give you that fresh start you’re looking for.