The Benefits of Downsizing Your Home
Moving out of the home where you spent the majority of your time raising your children can be difficult. After spending so many years in your current home, stepping down to a smaller home can seem daunting.
However, many older Americans are realizing that “living large” once the kids are out of the house doesn’t always mean owning a large home. Downsizing your home has been gaining popularity in recent years, and the benefits may be useful in helping you focus on the other financial goals in your life.
Smaller homes are often less expensive to purchase and can offer lower property taxes, lower homeowners insurance, and a lower mortgage. The windfall can then be used to invest in a 401(k), annuity plan, or to pay off outstanding debts.
A larger home means more time and money spent on maintenance, cleaning and other upkeep activities. In a smaller home, less time and energy is spent on upkeep and more free time is added to your schedule.
Lower Energy Bill
A larger area takes more energy to heat and cool, which is why downsizing to a smaller home allows you to decrease your energy usage and your utility bill. This keeps more money in your account and has the added benefit of helping the environment in the process.
In a smaller home, or especially a condo or apartment, securing your home before you leave becomes much easier. A portion of your home sale windfall can also be used to help finance a trip to Europe or to purchase a getaway home along the lake.
The Next Chapter
Moving into a smaller home can be the start of the next chapter in your life. A smaller home is an opportunity to declutter and can provide a transition into a retirement lifestyle.
While it may be hard at first, downsizing your home can be an exciting process given the benefits. If you are interested in how downsizing your home can affect your financial goals, consider contacting one of our financial advisors. We can discuss your situation to help you decide what’s best for your financial plan.
Not FDIC Insured |No Bank Guarantee | May Lose Value | Not a Deposit | Not Insured by any Federal Government Agency