As a society, we’re told that bigger is better, that more is better. Everyone wants to have that large home, the one with five or more bedrooms, and a kitchen that’s bigger than most apartments. But if we take a step back from our ego for a second, it becomes clear that the goal of having more, more, more in regards to the size of our home can quickly get us into trouble. After all, a home isn’t a one-off purchase – it’s a decision we have to live for decades. Below, we take a look at an often underrated option when it comes to our homes: downsizing. Take a read, and you might just discover that it would be the best decision for your financial health.
It takes a lot of energy to keep a home running. There’s the matter of heating and cooling, for starters, which can be a massive expense, especially if you live in a place that gets abnormally hot or cold weather throughout the year. If you have a large home, then you’ll already know just how much hard work it can be to keeps things at an agreeable temperature. Moving to a smaller abode, and everything becomes much easier – with less space to heat, the quicker your home will get warm.
Have you heard of lifestyle inflation? It’s the thing that happens when we get a raise at work, and then instead of saving the extra earned money, we increase our lifestyle to match our income. The same thing happens when we have a large home: we buy things just so there’s less empty space around. We don’t even need it, and it costs us a lot of money! When you downsize, you’ll need less material items – and you can raise some cash by selling all the belongings that you won’t be able to fit into your new house, too.
It Can Release Money Quickly
While it’s not a decision that should be taken lightly, downsizing is a viable option if you’re in an unhealthy financial situation. You may be able to sell your house fast, buy a smaller property, and then use the money that’s leftover to sort out your finances. Your home is likely to be the biggest asset that you have, and you’ll have a lot of money tied up in it. Downsizing can free up that cash to be spent on other things. It doesn’t have to be a financial emergency, either: you can use the cash to travel in retirement or just make your lifestyle more comfortable.
Stops The Money Drain
Biggie Smalls said mo’ money, mo’ problems, and the same can kind of be said of large homes. The bigger your house, the more problems it’s going to have. You might find that much of your cash is being spent on repairs to your crumbling home! Stop the money being wasted, and downsize to a smaller, better quality abode; you’ll have more money and fewer headaches!