Embracing Downsizing

Downsizing is both a financial as well as an emotional decision.  Of course, it can be wrenching to consider a move from a home filled with family memories.  Financially, the gains from that sale could add to your nest egg and reduce monthly housing costs thus enabling more enjoyment for adventures outside the home. Memories and experiences actually are quite portable and stay with you forever.

Or downsizing may be one of those future plans, perhaps when a situation forcibly demands. Consider for a moment instead the moves you can make today will save money now and make it easier on your retirement later.  Why gamble with what the market could be in a few years when the current buying market is strong with low interest rates?  From my own personal experience, the younger you are for the move, the less stressful it will be both emotionally and physically. No matter what you have planned, chances are it’ll cost money. And if you’re already spending too much on housing expenses to afford your dreams while you’re working, you’ll have even less cash to spare when you retire.

The decision is a personal one. Crunch the numbers. Calculate the upfront costs of moving, and compare them to the yearly savings you’ll realize. A small gain probably isn’t worth the trouble, but substantial savings might make selling the best option. Talk to your local realtor to do a market comparison of what your home is worth today.  If downsizing makes sense then make that new location somewhere where you can comfortably age in place.  Consider insurance expenses, property taxes, HOA dues, layout,  a lower physical burden in maintenance, and now too …. a place you can quarantine comfortably.  Will this home allow you to stay for as long as like without having to make modifications for your later years?  So when packing up those memories of your well-loved home; do bring that bucket list of dreams too, everything you can now work on making come true with the extra time and funds created.  

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