Why Downsize for Retirement?
(FinancialHealth.net) – Attitudes about home size evolve with age according to a 2017 Trulia survey on house size. While many millennials are wishing for more square footage, 36% of Baby Boomers are thinking about downsizing.
The idea of a smaller home isn’t just about feeling cozier. When retirement rolls around, downsizing can help cut back on clutter, reduce the amount of work you have to do and create a surplus of extra cash for higher priority expenses.
Less Room Helps Cut Back On Clutter
Belongings are often attached to special memories, making it hard to let them go. Clutter can easily accumulate over time, making a home feel crowded and messy. Downsizing can motivate homeowners to take a good, hard look at the things filling their home and simplify their lives by deciding which items are truly most important to them.
Some people believe that a larger home is an invitation to collect more stuff. If this is true, consider downsizing to a smaller home an invitation to get organized and let go of things that are only taking up space.
Less Maintenance Means You Enjoy Life More
It isn’t uncommon for retirees to hesitate when it comes to selling the home where they raised their kids. As difficult as it might be to say goodbye, a move to a smaller home can mitigate stress, is easier to clean and results in fewer maintenance needs.
The less money you have to spend on maintaining the home, the more you get to use to do the things you love. You’ll also spend less time cleaning and more time being social, if that’s what you desire. In addition, a smaller home means lower utility bills, making it a win-win all around.
Extra Cash to Do the Things You Love
A home is viewed as an investment for the future. For retirees, the future is now! If you own a home and have significant equity, congratulations! You’ve done a great job saving money that can now be used for higher priority expenses.
Downsizing can free up some of this money so you can enjoy the fruits of your labor. Use it take a trip around the country — or around the world — and enjoy the things you never got to do when you were younger. You can also use it to invest in college savings for children and grandchildren or pay for medical expenses.
If your home is starting to feel empty since your children left and started their careers and families, consider a change. A townhome, apartment or even a tiny house could be a comfortable place to call home during this new season of life.
~Here’s to Your Financial Health!
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