NEW YORK, NY / ACCESSWIRE / September 18, 2024 / Your dream home may not meet your needs forever. As your family or your priorities change, your housing needs often change, too. There are plenty of reasons to downsize your home. Maybe your kids have moved out, and you don't need quite as many bedrooms anymore. Or perhaps your family just wants something a little simpler in a different part of town. In any case, downsizing could have a positive impact on not only your state of mind but also your finances. The following benefits are worth considering as you determine whether downsizing is right for you and your family.
Smaller mortgage payments
A smaller home usually means a smaller mortgage payment. Housing costs are often one of the biggest - if not the biggest - monthly expenses in a person's budget. Saving on a hefty mortgage or rent payment means freeing up cash for other expenses, like enjoying retirement or traveling across the world.
Of course, you may not save money in some cases, like if you move into a smaller home in a pricier neighborhood or take on a slightly smaller mortgage with a higher interest rate. A trusted financial advisor is the right professional to help you figure out how much you may save and ultimately determine the best course of action.
Lower utilities bills
Heating a sprawling home in the winter or cooling it in the summer usually leads to extensive energy bills. And if you can't stomach the cost, you may have to make compromises that leave you shivering or sweating as the seasons change. Smaller homes are generally more energy efficient. With less square footage to heat or cool, your utility bills may decrease substantially. Plus, you can feel good about minimizing your environmental impact while saving money.
Less spending on unnecessary stuff
If you have a lot of space, you might feel tempted to fill it with unnecessary things, from kitchen gadgets you may seldom use to clothes you'll only wear once or twice. With a smaller home, you may simply not have the storage space for extra purchases. This restriction could cut down your consumption habits, saving you money from discretionary expenses.
When you move into your new, smaller home, you may also want to sell some belongings at a yard sale or online to make room in your new space. Then, you could put the proceeds toward investments in your future.
Cheaper insurance
Typically, the size of your home plays a role in determining your homeowner's insurance premiums. If a disaster damages or destroys your house, homeowner's insurance covers the costs of repairs. Smaller spaces usually cost less to insure, though factors like building age and materials may impact the price. You could use any money you save by insuring a smaller space to expand your coverage or reduce your deductible.
Fewer maintenance costs
Homeownership comes with a long list of maintenance tasks, from mopping the floors to mowing the lawn. It stands to reason that a larger home means spending more time-and money-on chores. A smaller home could save you hundreds if you pay for cleaning services. Even if you handle cleaning and caring for the space yourself, managing a smaller space still costs less. You can spend more of your time on the things you actually enjoy or put your funds toward your goals and investments.
While downsizing may not be the right choice for everyone, moving into a smaller home has many benefits. You could spend less time cleaning and more time enjoying the space with your loved ones. And with fewer monthly expenses, you may have more flexible funds that you could use to travel or build your financial security.
Contact:
Don Klein
1-800-323-7033
SOURCE: Northwestern Mutual
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