Exactly what does the term “Home Downsizing” mean? Most likely it will mean different things to different people. Some definitions we have seen include:
- Selling off excess personal property in order to make more room.
- Moving into a smaller, more manageable home.
- Cashing in on personal property investment
- Reducing the mortgage payment and living expenses.
Perhaps the simplest definition of Home Downsizing is “Making do with less”. It means shedding off all of the excess baggage that you have in your life including expenses, personal property, collections, or junk…and living a simpler, less complicated life.
If you are considering a major downsizing or move in the near future, you’re not alone. In fact, a significant portion of Americans 50-75+ are downsizing today. And why not? More than likely one or more of the following statements will apply to you:
- Your children are grown and gone.
- Your home has become an empty nest.
- You are retired, or getting ready to retire.
- You are ready to move nearer, or to live with, your children.
- You live in a home larger than you now need.
- The housework and yard are becoming too difficult to maintain.
- You are simply tired of the house and yard work and would prefer to spend your free time doing something else, such as traveling.
- Increased taxes and carrying costs are just becoming too much of a burden.
- You’ve lost a spouse or partner and are now living alone.
- You are ready to move to your shore house, mountain home, lake house, or otherwise smaller dream house.
- You would prefer to live in a year-round warmer climate.
- You are ready to tap into the home equity you have built up.
The reasons for downsizing are many. Each person’s life tells a different story, but many of us have reached the same point in our lives. What we are seeing is the “Grayification” of America, and an entire generation who is getting older, who is ready to downsize, and who is ready to move on to their next phase in life.
- Between 2010-2030 the number of Americans age 65+ will more than double to 70,000,000. (Delaware Valley Regional Planning Council).
- In Philadelphia alone 1-in-5 Philadelphians will be 65+ by 2025 (same source).
Never lose sight of the fact that “Downsizing” is usually about the money. When a business “Downsizes”, it lays off staff in order to reduce expenses. It divests itself of resources no longer needed and it cuts the fat, all in an attempt to increase operating efficiency.
“Home Downsizing” is no different. When you “Downsize” your home, you are basically seeking to reduce expenses, divest yourself of resources no longer needed, and cut the fat, all in order to increase your household’s operating efficiency.
The ultimate objective of Home Downsizing for many is to increase the operating efficiency in your life, thereby giving you more money, with less work, and more time to do the things that you want to do.
Home Downsizing Tips & Strategies
Home Downsizing means different things to different people. What does it mean to you? What are three things that you would like to accomplish once your Home Downsizing phase is complete?
- 1. ___________________________________________________________
- 2. _____________________________________________________________
- 3. _____________________________________________________________
Home Downsizing is similar to Business Downsizing in that its objective is to increase operating efficiency by cutting expense. Home Downsizing is usually about he money. How much can you save by downsizing your home?