Downsizing, that is decluttering and simplifying your life, can bring great rewards to you and your family, including financially and emotionally.
If you're not sure whether downsizing is right for you, use the list of pros and cons to help you decide. And, if moving is part of your plan, check out the list of location factors to consider.
Downsizing pros and cons
If you’re just starting to think about downsizing, weigh the pros and cons before making your final decision:
Pros
- Less home to clean, maintain, heat, cool, and insure
- Lower utility bills
- Smaller house payments
- Less debt/more money in your pocket
- Fewer possessions to organize and maintain
- Increased freedom
- More money for discretionary spending
- Less anxiety-inducing clutter
- A fresh start
- A chance to escape from any unpleasant neighbors
- More time to spend with friends and family
- A more manageable life
- Enhanced health and fitness
Cons
- Sacrificing some possessions
- Loss of convenience
- Less room for storage
- Additional one-time relocation expenses
- Less room for entertaining family and friends/guests
- Cramped living quarters
- Challenging life transitions
- Distance from former neighbors and old friends
- Reduced freedom and independence if you’re moving to an assisted living facility or nursing home
- Lost sense of status
- Disappointment if downsizing doesn’t meet your expectations
Relocation factors to consider
Downsizing often involves moving to a new, typically more affordable, location. As you evaluate the possibilities, examine the following factors:
- Foreign or domestic — consider language challenges, as well
- Terrain — plains, mountains, waterfront, desert, forest, jungle
- Climate — hot and dry, hot and humid, temperate, cold, seasonal
- Size/population — large city, small town, remote area
- Affordability — cost of living, taxes
- Employment opportunities — or suitability for working remotely
- Health care — proximity to doctors and other caregivers
- Proximity to friends and family
- Activities, entertainment, and restaurants
- Walkability/transportation
- Crime rates
- Amenities — library, community center, and more
- School system — even if you don’t have kids, a quality school system helps to maintain property values and the neighborhood overall
- Existing property or new construction — do you want to buy an existing property or build something new?
