There are several barriers to being able to get ahead and save money for things like your child’s education and your own retirement. Debt is the biggest one. Making car payments, paying a high mortgage, and lots of credit card debt are holding back many families and causing undue stress.
It makes sense to lower that debt and the best way to make that happen is to downsize. Downsizing is not just about getting rid of old clothes or clearing out the garage. It is a lifestyle choice that involves reigning in the spending and making some moves to save money.
In this article, we will go over some of the things you can do to downsize and take control of your financial future.
Transportation costs are very high these days and making car payments for an auto loan is adding more pressure. A family car is very important, but you may have a car that is too big or just simply too expensive to justify keeping.
If you find yourself making payments for a car that are putting you in financial difficulty then you can sell a financed car and buy something for cash or finance a used car for smaller payments. Either way, it is going to cost you less money and those savings will go a long way. Especially when they are combined with other savings you will be making.
Get a smaller home
There is a movement across the globe of moving into tiny homes. These people are downsizing to the extreme and moving into homes that are as small or smaller than an average apartment. It’s possible to do this because of how creative they are with storage and making the most out of a little bit of space.
You don’t have to go that extreme, but the point is that it is possible to live in a much smaller home than you are now and thrive. Even with children, it is very possible to move into a smaller home or apartment and not sacrifice the quality of life at all.
Moving into a smaller home is going to be an enormous savings opportunity. The mortgage is surely going to be much less than what you are paying for your large home. In addition to that, it will cost far less on insurance, property taxes, heating and cooling, and other utilities.
Many houses are filled with furniture that is only there to fill up space. If there is a corner that looks bare, then a bookshelf or small chair is put there to fill it up. Or, there is a room that has a couch in it that nobody uses because they prefer to relax somewhere else. This is all furniture that can be sold so you can keep that money in your pocket instead of in useless furniture.
Use the space wisely instead of accumulating more stuff just to fill it. Create a meditation corner instead of putting a chair in a bare spot. Use the extra room as an Airbnb rental and make some additional income.