Why Downsizing Makes Sense

Did you know in 1950, the average home was less than 1,000 square feet in size? Today, the average home is just about 2,600 square feet, according to recent Census data. The amazing part, families were larger back in the 1950s.

Downsizing your home makes sense in many different scenarios. Whether the kids are all out of the house or you just want to eliminate the high mortgage payment, downsizing may be a very good thing. Here are a few of the top reasons why downsizing makes sense.

Less Really is More

If you’ve ever gone through the “spring cleaning” process of getting rid of things you don’t need, use or want, you know how good it feels. Minimizing is a freeing thing and so is downsizing.

Many homeowners wonder what they are going to do with all their stuff when they downsize. You have plenty of options from giving it to charity to selling it and putting the money in your pocket.

Along with less stuff, downsizing often leads to less maintenance and cleaning. Retirees will downsize from a larger house to a condo to avoid dealing with mowing the lawn, landscaping and other outside chores. However, downsizing to eliminate how much you have to clean and the outside chores isn’t just limited to retirees.

Getting your Finances in Order

Maybe you’ve recently decided it’s time to free yourself from the debts you’ve been carrying. Downsizing is one of the first recommendations by top financial advisors when it comes to getting out of debt. If you’re able to chop your mortgage down by a few hundred dollars per month, you’ll have more to use to pay off your debts.

A lower mortgage payment also helps eliminate stress. If you carry a $2,000 mortgage payment and it stresses you out each month, cutting it to less than $1,500 may help to relieve your normal stress from paying a larger mortgage payment.

Pay off Your Mortgage Faster

Maybe you simply don’t need so much house anymore. When you downsize to a smaller, less expensive home, you can pay off your mortgage faster. According to the Boston College’s Center for Retirement Research, if you go from a $250,000 home to one costing $150,000, you can increase your annual income by $3,000 and reduce your annual home expenses by $3,250, on average. Imagine how fast you could pay off your mortgage if you put an additional $6,250 towards it every year.

Freedom

Many have taken to minimalizing to free themselves from stuff and downsizing your home is a part of this same strategy. When you buy a large home, the next thing you do is fill it with stuff. If you have two living rooms, you now have two couches, two recliners, two coffee tables and a variety of other pieces of furniture.

Living in a smaller space means less room for things. When you cannot fit a second set of furniture into your home, you won’t buy it. Smaller spaces provide freedom from things because you will be more aware of what you allow in your home.

There are several great reasons for downsizing your home. It makes sense in many situations and if larger families could live in smaller spaces 60 years ago, why can’t you do it today?

Did you know in 1950, the average home was less than 1,000 square feet in size? Today, the average home is just about 2,600 square feet, according to recent Census data. The amazing part, families were larger back in the 1950s.

Downsizing your home makes sense in many different scenarios. Whether the kids are all out of the house or you just want to eliminate the high mortgage payment, downsizing may be a very good thing. Here are a few of the top reasons why downsizing makes sense.

Less Really is More

If you’ve ever gone through the “spring cleaning” process of getting rid of things you don’t need, use or want, you know how good it feels. Minimizing is a freeing thing and so is downsizing.

Many homeowners wonder what they are going to do with all their stuff when they downsize. You have plenty of options from giving it to charity to selling it and putting the money in your pocket.

Along with less stuff, downsizing often leads to less maintenance and cleaning. Retirees will downsize from a larger house to a condo to avoid dealing with mowing the lawn, landscaping and other outside chores. However, downsizing to eliminate how much you have to clean and the outside chores isn’t just limited to retirees.

Getting your Finances in Order

Maybe you’ve recently decided it’s time to free yourself from the debts you’ve been carrying. Downsizing is one of the first recommendations by top financial advisors when it comes to getting out of debt. If you’re able to chop your mortgage down by a few hundred dollars per month, you’ll have more to use to pay off your debts.

A lower mortgage payment also helps eliminate stress. If you carry a $2,000 mortgage payment and it stresses you out each month, cutting it to less than $1,500 may help to relieve your normal stress from paying a larger mortgage payment.

Pay off Your Mortgage Faster

Maybe you simply don’t need so much house anymore. When you downsize to a smaller, less expensive home, you can pay off your mortgage faster. According to the Boston College’s Center for Retirement Research, if you go from a $250,000 home to one costing $150,000, you can increase your annual income by $3,000 and reduce your annual home expenses by $3,250, on average. Imagine how fast you could pay off your mortgage if you put an additional $6,250 towards it every year.

Freedom

Many have taken to minimalizing to free themselves from stuff and downsizing your home is a part of this same strategy. When you buy a large home, the next thing you do is fill it with stuff. If you have two living rooms, you now have two couches, two recliners, two coffee tables and a variety of other pieces of furniture.

Smaller homes are becoming more and more popular

Living in a smaller space means less room for things. When you cannot fit a second set of furniture into your home, you won’t buy it. Smaller spaces provide freedom from things because you will be more aware of what you allow in your home.

There are several great reasons for downsizing your home. It makes sense in many situations and if larger families could live in smaller spaces 60 years ago, why can’t you do it today?

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