It might be just around the corner, it might be many years away, but retirement eventually comes for everyone. After many years of working hard and saving, this is your time to sit back, relax and enjoy spending your nest egg. If your nest egg is not as big as you’d have wanted, a great way to increase the funds is to consider downsizing and moving to a smaller home. Do you really need a huge backyard that you’ll have to keep tending? Are the extra bedrooms really necessary now all the kids have left home? Moving in later life can be overwhelming but there are several reasons why it is a good idea.
The Benefits of Downsizing
There are many different reasons why downsizing would be the right move to make. It will affect your life on a physical, emotional and financial level. Financially, it will leave you in a better position because there will be profit to be realized and you should be able to kiss goodbye to your mortgage repayments. Living in a smaller house will mean the household bills are going to be smaller. Imagine what you’ll be able to do with that extra cash. You could enjoy traveling or make some improvements to your new home. There will be certain costs associated with the move, such as paying local movers. However, these should be more than covered.
Downsizing is the perfect opportunity for decluttering. All those useless items you’ve been hanging on to can finally be disposed of. You can use the move for making changes in your décor, and it can kick-start a new way of life for you and your partner. New friends to make, fun things to do and no more worries about mowing the lawn every Sunday and spending all weekend cleaning.
Another benefit is that it may allow you to move closer to family and friends, and you can choose to live closer to certain amenities you enjoy such as theater, museums and restaurants.
The Downside of Downsizing
It’s only fair to mention that there are a few disadvantages to moving to a smaller home. As we all know, the housing market is a very volatile one, and you may not get the required price for your home. A smaller home is not always going to be cheaper either. For example, moving closer to the city means property prices will be higher. While moving is a good time to declutter, you’re then faced with the problem of what to do with all that stuff. What about all the friends you’ve made over the years? Do you think you’re going to miss them? Living in a smaller home can be more stressful than you think, especially when you and your partner have enjoyed having so much space to move around in. Suddenly being forced to spend more time in each other’s company can put a strain on the most loving of partnerships.
If you decide after reading this that downsizing is the way to go, make sure you do your homework. Don’t be rushed into making any hasty decisions, and it should all work out in the end.