For some people, bigger is better is always the rule. However, there comes a time in life where big houses don’t always work out, and as today’s title may have already given away, we’re now referring to retirement. Once this period arises, your responsibilities change. The kids have typically fled the nest, while there are also some different financial circumstances to get used to.
Of course, there’s slightly more to it than the above, and this is the reason behind today’s article. Let’s now look at some of the principle reasons why more and more people are deciding to downsize as they hang their tools up at work.
It’s an easy way to save money every month
One of the biggest misconceptions about retirement is that everything is paid off, and your expenses have come to an end. As it turns out, this tends to be the start of a new wave of expenses. We’re talking about things like the cost of a funeral, elderly care, and even funding the kids through university.
It means that you can start to have gaping holes in your finances as you start to enter your advancing years. This is where downsizing can help enormously. Not only can you save on the mortgage (if yours isn’t paid off already), but a smaller home will cut your energy bills, insurance and maintenance fees as well.
On the subject of maintenance…
We’ve just touched upon maintenance, but this is something that is often underrated in your younger years. However, as you start to age, it becomes harder and harder to keep on top of larger homes. Whether it is cleaning, or by doing the garden, it’s time and energy that adds up. By downsizing, these jobs can be cut in half.
It’s an easy way to eliminate the “cash poor” problem
You might have paid off your mortgage, but in a lot of cases, this prompts the classic case of being asset rich but cash poor.
This is where downsizing can play right into your hands again. If you sell your home and replace it with something cheaper, you suddenly have been left with a windfall of cash that can be spent on retirement. Don’t underestimate the size of this windfall either; it’s not been unheard of for some to be in the region of six figures.
It might not just come down to finances
Finally, this might not be a decision that rests solely on finances. Even though this has been the main focus of today’s article, let’s not forget that some regions serve the elderly better than others.
While the rural lifestyle might have suited you a decade or two ago, now you need to think more about convenience. Transport links suddenly become a lot more important, while it goes without saying that your interests will have changed as well. Make sure this is taken into account as you plan to downsize, to make sure that your needs are still going to be catered for.
To read more on topics like this, check out the house category.