While owning a big home is thrilling, it comes with many responsibilities. Therefore, if your home doesn’t match your lifestyle, you might want to purchase or move to a smaller one. Besides, downsizing your home has many benefits. You can increase your cash flow, reduce your time on upkeep and lower your utility bills. But how do you know when to downsize?
Here are common indicators that it’s time to downsize your home:
1. Your home expenses surpass 30 percent of your income
You might want to downsize if you want to save money. Typically, you should spend thirty% or less or less of your income on housing expenses, which include property taxes, maintenance costs, utilities, mortgage payments and homeowner’s insurance. So, if your income has dropped, downsizing can help you cut monthly housing expenses.
2. You are feeling overwhelmed
Owning a big home is not something that everyone can handle. Apart from the monthly housing expenses, there are other responsibilities. For example, the house must be kept clean, repairs must be done, the decor must be updated and the yards need maintenance. So, if you feel these responsibilities are too much for you, it might be time to consider downsizing.
3. You live alone
You can consider downsizing your home if your kids have moved away and you don’t need the extra space. When your kids go to college, get married or move to their apartments, you will go through a transition process, and part of it should be downsizing your home. Downsizing will offer you flexibility and stability since you will have fewer responsibilities and expenses.
Moreover, downsizing will make moving easier for you if you’re considering living closer to your children and grandkids.
Owning a big home can be exciting, but it comes with numerous responsibilities. If you think now may be the right time to downsize, consider seeking legal guidance to determine your options.