Regardless of how your lifestyle is designed, if you’re looking to boost your financial nest egg, you need learn how to downsize and save more money!
I distinctly remember the late 90’s. It was back then when my family decided to move into a bigger home. We moved from a 2 bedroom apartment, from a small suburban neighborhood, into a bigger 2 bedroom apartment (double the size), in a central city area.
There wasn’t much talk back them regarding saving money, decluttering, avoiding debt problems etc. What mattered was keeping up with the Joneses, so buying a bigger home was considered a step forward.
However, the costs of such an apartment upgrade can turn out to be a phenomenal financial burden, especially if you’re looking to consistently save money.
So, what can you do?
Well, since my significant other and I decided we can’t afford to keep certain residential standards anymore, we decided downsizing isn’t just for the elderly anymore! It was the best financial decision we’ve made so far, in terms of saving money.
Here are some proven tips on how downsizing can help save some serious money in the long run.
How to downsize and save more money
Move into a smaller home
First step to downsize is finding an affordable apartment to rent. Or a smaller house.
After careful consideration, choosing a smaller home will definitely save you a ton of money in the long run.
Say you only save as little as $100.
Monthly savings on rent: $100. Yearly savings on rent: $1,200!
It’s not much, but multiply it by a few years in a row and you get a few thousand dollars you could set aside. Not too shabby for only 100 bucks less.
Electricity and gas definitely cost less if you live in a smaller house.
The less square footage you need to ‘heat up’ or ‘cool down’, the less you’ll pay for utilities!
However, before signing any new utility service contract, do some shopping around and see if you can switch to a cheaper provider, and save even more!
Saving as little as $20 a month is enough to reduce your expenses and increase your savings.
Smaller maintenance costs
Living in a smaller home means less square footage to paint, fewer electric switches to change, smaller carpets to buy.
It may not be a lot, but it’s still saved money! This is in addition to having less maintenance work to do around the house. Imaging how much free time you’re ‘earning’!
You can actually earn money when downsizing
If you decide to downsize, chances are some of the stuff you have now won’t fit in your new, smaller home.
So you can sell it!
Gym equipment you only keep as a coat rack, home appliances you barely use, even clothes can be sold at garage sales, on eBay or even by word of mouth.
Decluttering is a good idea for 2 reasons: you can earn some money by selling stuff you don’t need anymore and you’ll be able to better organize your new home.
Just like many other big decisions, moving into a smaller home takes time, energy and a complete lifestyle makeover.
Downsizing may not be for everyone, but it can really help save more money in the long run by spending a lot less on bills, maintenance and rent/mortgage.
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