Have nothing in your house that you do not know to be useful, or believe to be beautiful. ~William Morris
More often than not when people think of a move, it is always associated with moving to a bigger and roomier space. Unfortunately, this is a mistaken impression and errant notion forces potential homeowners into an ideology that as you progress with your family life, you can only move to bigger and spacious homes.
It is this very belief that makes downsizing have so many negative connotations. However, newsflash: Moving does not always mean it is time to buy a bigger home, and this article wants to dispel that idea and set the record straight.
Imagining your entire life, packing that and fitting that into a smaller space such as condominium units may be daunting. Your initial thought when it comes to downsizing would be probably where you would store all of your extraneous stuff.
Easy, you sell those that you do not need and keep only those that you do. It might surprise you just how much stuff you have accumulated over the years that are just taking up space without so much as being used. Apart from the additional money you would make from the things you sell, your lifestyle would be more cost-efficient, and you get to save more concerning utility bills.
Simply put, moving into a smaller home has the potential to lower costs all around. It is economical, and it saves you money. Here are the ways downsizing would help you cut costs and save more money.
How to downsize to save money
MONEY SAVING TIP #1: CHOOSE A PLACE WITH A LOW COST OF LIVING
Selecting a location is key and would play a pivotal role when it comes to cost of living. Living in your condo in Cebu widely different from living in a house and lot in Cavite—both have their unique advantages and disadvantages and a lot of factors would contribute to the kind of premium you would pay.
So, before making a move, be meticulous about your choices as to the location of your new home. Choose wisely, or you may end up paying even more than you did in your original house despite the reduction in size.
MONEY SAVING TIP #2: YOU GET CHEAPER UTILITY BILLS
Without a doubt, downsizing is excellent for your energy bills as well as doing your share of protecting the environment. As you live in a smaller flat, it is only natural for you to use less energy to cool, heat and light things up thereby significantly reducing your utility bills.
MONEY SAVING TIP #3: SMALLER HOUSE PAYMENTS
Apart from the money you can save in utility payments, downsizing would also result in a lower monthly mortgage payment. If you added this up by the end of the year, you would see how much you can truly save.
MONEY SAVING TIP #4: GET RID OF STUFF
Apart from selling the stuff you no longer need and clearing your home of clutter, when it comes to moving stuff around you would no longer need help and could probably do it yourself.
Add this to the extra money you have for hosting a garage sale and consigning items then you would have a lot of extra cash you can use in your new home. The less stuff you have, the less workforce you would need to move them saving you a premium from hiring moving services.
MONEY SAVING TIP #5: YOU CANNOT OVERSTOCK YOUR HOME
Living in bigger homes would often give us the compulsion to fill up our homes and make it seem more lived in it. In smaller homes, no such impulse exists, and that is because you have nowhere to store the extra stuff. This means you would have to be extra meticulous and strategic when it comes to buying furniture and other things for your homes.
It also means that you have to limit your spending—especially when it means you are buying more than what your home can hold.