Downsizing To Save
It is no secret that finances are the most important component in most people’s life. How much money is in the bank can dictate the kind of house that are purchased, the kind of car driven, and the overall lifestyle that is lived. Many people are downsizing to a smaller home and learning to live with less as a way to save more. The downtrodden economy has many people asking themselves what they can live without. Just what does a person have to have in a home? Is downsizing a viable option for a larger family to save money?
1. Engrain the Concept Less Is More
While living in a posh two story in the most desirable neighborhood does come with perks, are those perks really all necessary? In the good old days, closets were small and able to hold the minute wardrobes of yesteryear. Today, the closets are the size of a large bedroom and full of shelving and other accessories. Today’s standards have continued to grow until the point where people are working just to pay bills and barley has anything left over. If we could live on less and have more family time, more time to give to others and more time to give back to the community, wouldn’t it be worth it? Most people kill themselves going to a job that usually they hate. What if people didn’t work as many hours of overtime and had that extra time to spend with the family? It’s a concept worth considering.
2. Downsizing Equals Major Savings
Going from a 2500 sq. ft. home to a 1500 sq. ft. home is going to offer some challenges, but better yet it will offer more savings in the long run. For instance, if a home usually has an electric bill for around $250, downsizing their space by a third could slash the electric bill as well. So electricity can go from the $250 mark down to $166, which alone is an $83 savings a month, or nearly $1,000 a year. The same should be said of a home that is heated by natural gas or propane. Less space to heat means less overall costs. These cost savings just cannot be ignored. A smaller home costs less overall and the utilities will be less.
3. Consider Alternate Locations
A home overlooking a golf course can go for as much as $50 thousand more than a home sitting in a cul-de-sac. While having instant access to activities is nice, is it a requirement? It is easy to see that homes that are closest to tourist attractions and posh neighborhoods would demand a higher price tag than those that sit in second class neighborhoods or in rural areas. Many people get themselves in trouble when they try to “keep up with the Jones.” Rather than trying to keep up, find a home that is in a great neighborhood that has good space and nice streets, but doesn’t demand the prices of other more advanced areas.
When people look for methods of savings money, the home is one that should be considered. On average most people spend around thirty percent of their income on their housing costs. What if the percentages were lowered just a bit, that savings could free up money for the family to splurge on other things, or put some away for a rainy day.
This is article is contributed by Madoline Hatter. Madoline is a freelance writer and blog junkie from ChangeOfAddressForm.com. You can reach her at: m.hatter12 @ gmail. com.
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