Downsize for a Better Retirement

Written By Mary Beth Eastman
Last updated December 11, 2020

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Money Saving Tips
April 13, 2018

Simple. Thrifty. Living.

Downsizing may sound like a negative move, but it can actually be freeing on a number of levels. For those planning to retire, downsizing can improve their financial situation while releasing them from the burden of maintaining a large home and property. When you downsize, you don’t have to toss all of your possessions and move into a tiny home. You can just simplify your life to make retirement more fulfilling.

Downsizing your living arrangements before retirement puts you ahead of the game. Financially savvy people plan ahead so that they can meet their financial obligations while still living a satisfying life. You should figure what your monthly income will be after retirement and compare that to your current monthly expenses. If you are still carrying a hefty mortgage on a larger house, getting something smaller makes sense, particularly if your children have all established their own homes. You may be able to sell your current home and buy something smaller with cash, completely eliminating the need for a mortgage.

A small home comes with other benefits. Your utility bills and maintenance expenses will be lower, freeing up more cash to pursue your interests during retirement. Also, getting rid of your large home will save you time and effort. You don’t want to spend your golden years dusting, mopping, mowing, and painting.

Downsizing a home allows you to downsize your possessions. Things that seemed important when you are younger may just be weighing you down, now. You can prepare for retirement by sorting these things and keeping only the items that have true sentimental value or a practical use.

This task can be daunting, but by getting rid of your “extra” possessions, you will be freer. You can live in an uncluttered home and travel without being tied down to your collection of things. Aim to reduce your items so that they would fit into a small trailer or storage unit. You’ll be able to travel lighter, and when you are gone, your children will thank you.

Downsizing can enhance your retirement lifestyle in several ways. You will be less burdened by caring for possessions, and you will also save money by living in a smaller home. Don’t spend your precious later years taking care of stuff. You should focus on creating a comfortable retirement that lets you pursue the enjoyable things in life.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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