Downsizing can be a very emotionally fraught experience, but once you have cleared out those purchases, services, and even luxuries that have been tying up your budget in a complicated net that has meant dipping into debt more often than not, you’ll realize just how freeing it can be. Being able to save up rather than go further in debt feels like a breath of fresh air. It’s also impossible to do if you currently live outside of your means.
Yes, it’s hard to downsize. It’s especially hard to accept you need to downsize if you’ve only just recently experienced a large shift. A job loss, for example, can quickly chuck you from the top of the world to starting from scratch. While a job loss can easily be rectified with a new one, struggling to recover from debt is entirely another story. Regardless of why you need to downsize, these tips will help you reach a stable, sustainable lifestyle limit.
Sell the Budget-Busting Luxury Items
Luxury items are typically the first to go when it comes to dealing with severe debts, especially if you don’t get that much value out of them. If you have a Ferrari California you rarely drive because it’s just not practical for you or your family, then it’s time to sell. Sure, you can try all the other workarounds you can think of if owning that Ferrari was your dream, but if you’ve been pushed into a corner, your best bet is to look up quick, effective ways to sell simply. Start by searching for ways to “sell my Ferrari California” and find a reputable buyer that can take it off your hands. If you’re pressed for a deadline, then cash-buy is best.
Living in a property too large for your budget is a money eater. This is especially true if you’re renting, though this tip is still applicable for homeowners. Selling a large, luxurious property and downsizing to something more moderate can massively free up your budget. The same applies if you downsize your rental. The goal is to find a home that only costs 30% or, ideally, less to manage out of your income.
Be Aware of Subscriptions
Subscriptions can actually be quite nefarious. Each one is low-cost, which means it feels like no big deal to subscribe to it. One or two subscriptions are easy to have and can even be a great budget-friendly option to get your entertainment or services. When those subscriptions pile up, however, you may end up spending far more than you were anticipating. That’s why you’ll also want to go through your subscriptions, take note of the total, and then cancel what you can to free up your budget.
Downsizing Your Lifestyle
Downsizing also means reducing your lifestyle to match. This doesn’t mean you have to sit around and do nothing, but instead, make changes. Instead of going out to the town, you can instead go for more hikes and look up free things to do. For best results, track your spending. Simply being aware of how much you spend and how much you have left will force you to rethink your spending habits and come up with smarter ways to spend less.