Skip to main content

  • Home
  • Home
  • Clients
  • Philosophies
  • Our Team
  • Contact Us 
    • Ask Us A Question
  • Affiliations
  • Blog
  • Financial Check-Up℠
  • Resources
    • Calculators
    • TD Ameritrade Account Login

    You are here

  1. Home
  2. Blogs
  3. The Benefits of Downsizing

The Benefits of Downsizing

Submitted by BCR Wealth Strategies on March 4th, 2019
  • Facebook Like
  • Google Plus One
  • Tweet Widget
  • Linkedin Share Button

Modern advertising tells us, and the Joneses next door make us feel like we NEED a bigger home, nicer clothes, fancier vacations, luxury vehicles, and a fatter paycheck to pay for it all. In a society where bigger is better and more is more, can we find the benefit and contentment in simplifying? In particular, can the “less is more” theory apply to our home?

The answer is yes, it can. While it may not be for everybody, there are certainly several potential benefits of downsizing your home:

  1. Increased cash flow – I think the most obvious benefit to downsizing is the increased cash flow. If you purchase a home with a smaller mortgage, you’ll have more money leftover at the end of each month to save or spend on other needs or desires. If you make a hefty profit on the sale of your current home, you could use that money to buy a home with cash and not have a debt payment. You’ll likely save on some utilities as well because you’ll have less square footage to heat and cool. In addition, depending on your circumstances, you might have lower property taxes or insurance.
  2. More time – Less square footage means you’ll have less upkeep. You’ll have fewer rooms to clean, less furniture to repair and replace and less storage to accumulate items over time, which you then have to go through and declutter and organize. Smaller homes take up less time during the day to maintain, so you’ll have more time to spend on other enjoyable activities.
  3. Reduced consumption – If you have less space, you won’t need to keep purchasing items to fill it. You might think twice before buying a new winter wardrobe that you might not need because there’s no extra room in the closet. You also won’t be buying new furniture or household items to fill extra space.
  4. Minimized stress – The less you have, the less there is to maintain. This can mean less responsibility, a smaller workload, and greater flexibility. Homeowners who have downsized successfully no longer have to answer to the demands of a larger home, which can relieve stress and lead to greater happiness in the long-run.

As with all things, there are pros and cons. If you downsize, you’ll certainly be dealing with fewer belongings, space restrictions and possibly less “perceived prestige.” You need to weigh the advantages and disadvantages of downsizing your home in the context of your personal situation and what brings you the most joy and contentment.

-Leighton Lindstrom

RESOURCES:

https://www.thebalance.com/home-downsizing-1798313

https://money.usnews.com/investing/articles/2017-02-10/benefits-of-downsizing-your-home

Subscribe to Our Blog

Enter your email address:

Recent Blog Posts

  • Stop, Collaborate and Listen
  • An Unusual Opportunity For a Tax Deduction
  • Should You Invest to Get Income In Retirement? Not So Fast My Friend

Categories

  • Author - Clay Wood (2)
  • Author - Harold Sasnowitz (2)
  • Author - Intern (13)
  • Author - Lindsay Birchfield (2)
  • Author - Mark Hume (25)
  • Author - Marshall Rathmell (6)
  • Author - Sandra Cleveland (3)
  • Author- Clay Wood (31)
  • Author- Harold Sasnowitz (29)
  • Author- Kristie Clayton (7)
  • Author- Marshall Rathmell (92)
  • Author- Sandra Cleveland (49)

Archived Blog

  • March 2021 (1)
  • February 2021 (5)
  • January 2021 (4)
  • December 2020 (4)
  • November 2020 (5)
  • October 2020 (4)
  • September 2020 (4)
  • August 2020 (5)
  • July 2020 (4)
  • June 2020 (5)
  • May 2020 (5)
  • April 2020 (8)
  •  
  • 1 of 7
  • ››

Contact Us

Ask Us A Question

 

Alabama

Phone: 205-298-1234
Fax: 205-298-1230

1952 Urban Center Parkway
Vestavia, AL 35242

Get Directions

New Jersey

Phone: 607-238-7718
Fax: 607-238-2859

22 Lenox Ave
Clifton NJ 07012

Get Directions

Affiliations

BCR Wealth is an independent firm that puts its clients’ interests first.  In order to maximize the value we provide clients we have affiliations and strategic alliances with other organizations including:


TD Ameritrade, Inc. is one of the firms that we use to custody our client assets. TD Ameritrade, BCR Wealth Strategies, and the other entities named are separate and unaffiliated firms, and are not responsible for each other’s services or policies. TD Ameritrade does not endorse or recommend any advisor and the use of the TD Ameritrade logo does not represent the endorsement or recommendation of any advisor. Brokerage services provided by TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. Used with permission.

  • Sitemap
  • Legal, privacy, copyright and trademark information
  • Form CRS

© 2021 BCR Wealth Strategies LLC. All rights reserved.

Website Design For Financial Services Professionals