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Downsizing your home doesn’t have to be a sacrifice. Instead, look at it as a way to lower your costs while adjusting to a new lifestyle in retirement.
And downsizing may actually make more sense for your current lifestyle, like if you have a large house from raising a family, but now you’re empty nesters. Read on for the five steps you should take when downsizing, and enjoy the benefits of more budget flexibility, less maintenance and reduced clutter.
1. Outline your goals
Consider why you want to downsize and what benefits you want to get from the move. Reducing your costs, for example, makes it easier to retire without working part-time, and may mean you can spend more time with your friends and family. Freeing up your budget can also give you the flexibility to travel more often.
As you get older, routine tasks like maintaining the home and mowing the lawn may be less feasible. Another goal could be to decrease the number of rooms to clean and other chores you have to do if you live in a smaller home. Or perhaps you want to move somewhere where you can build up a community of people your age.
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2. Sort strategically
Getting rid of possessions during the downsize is often the hardest part, but implementing a sorting strategy can make it easier. For example, you can group items based on which ones you love, need or can leave.
The “love” category consists of non-essential items that offer nostalgia or family value. The “need” category contains items that you must have, such as a computer or kitchenware. Finally, the “leave” category is made up of items that no longer hold value for you, such as things that have been in storage so long you didn’t notice they were gone.
3. Do a financial analysis
Downsizing and getting rid of clutter can offer immediate financial benefits, such as extra cash from selling your home and items, lower property taxes, lower utility bills and reduced insurance. Doing a financial windfall analysis can help you understand the benefit of making the move, which can push you to stay committed even when the process is challenging.
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4. Carefully consider location
While downsizing can save you a lot of money, doing it too quickly can lead to regret. It’s important to test locations out before you commit, like by living in a one-month rental. You will be able to determine if the location you chose is suitable for your retirement or if you should stay put and wait until you find an area that better aligns with your goals.
Living in one place for a month can also allow you to gauge whether the activities you want to participate in during retirement are available, and if the social circles you’re looking for are present.
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5. Find smart storage solutions
Having small, dedicated storage for sentimental items like photos and letters makes it easy to find them whenever you want to go down memory lane. Storing items in specific boxes based on categories can also help you find various items when you want to use them.
