Save money on your mortgage/rental payment, utility bills and taxes
The monthly mortgage payment, or respectively your rental payment, is thought to be one of the greatest expenses you may face up. It usually accounts for about 30% (or even more) of your income. Living in a smaller property means less mortgage/rental payments.
The cost of utilities is another hefty bill that’s easy to reduce if you downsize. Reduce your carbon footprint and enjoy a lower energy bill in the warmer or in the cooler months.
Property taxes are one more expense that homeowners can reduce significantly if they move to a smaller home. According to Investopedia.com, moving from a 3,000-square-foot home to a 1,500-square-foot home can cut your taxes by half.
Cut maintenance costs
If you are moving from a large home to a condo, you’ll cut down on yard work and snow removal. Indeed, a smaller space means less money to spend on maintenance. Downsizing, you won’t need the landscaping service any more. If you decide to renovate the place, you will need less paint to buy and fewer rooms to cover. When things get old, dirty or broken, you’ll save money by fixing a smaller roof, and renovating 1,500 square feet of flooring instead of 3,000 square feet.
More money to spend on the significant stuff
Cutting the above mentioned expenses, means that you will end up the month with more money in your pocket. And, some wise people say that it is better to buy experiences instead of things. As you will have substantially less work to do around the house, you will be able to spend your money and your time on learning news skills, undertaking inspirational travels, or practicing your hobbies, or simply relax. Moreover, you will have more time for your family and friends.
Now let’s say a few words about the benefits of moving to a smaller dwelling beyond the money. If you have less stuff, it would be much easier to change residences. Also, as you will have less maintenance costs, you can paint the walls or change the flooring more often. Having less furniture, you can actually focus on buying only quality (and space-saving) furniture. And, of course you can be creative – there are so many space-saving hacks you can benefit from.
Moving to a small place will also affect your physical and mental health in a good way as you will have a lot less chores and responsibilities. Less clutter can lead to calmer mind. And, nowadays, reducing the stress is crucial when it comes to well-being.