People choose to downsize for many reasons. Many couples downsize after their adult kids have moved out, others want to reduce their cost of living, while still others simply want to embrace a more minimal lifestyle. Whatever the reason may be, downsizing is a great option for many couples or families, but it requires some deep consideration. Before you settle on a new living arrangement, these are some questions you may want to ask yourself.
What do you love about your home?
While it’s the memories that truly make any house a home, good amenities never hurt! Everyone has a feature that they love; it could be a kitchen with the latest appliances, a pool, a yard, or even the location. When choosing a smaller home, you may not be able to recreate exactly what you loved about your old house – but it may help to look for similarities. Your new home might be small but with a spacious kitchen and new appliances. You may not get the same yard, but you may be able to access shared community recreational spaces. Even when you downsize, it’s good to keep your priorities in mind so you can keep enjoying the things you love.
What will your finances look like?
Downsizing can have financial advantages. You may be able to lower your monthly expenses, and you may be able rent out your current home or sell it for more than your new home costs. However, moving can get expensive. Even if you’re able to pay for your new home fully after the sale of your current one, unexpected costs can still come up. Moving can be expensive, and sometimes homes need repairs. For issues like this, you may want to consider options like your emergency fund or taking out a personal loan. If you have permanent life insurance, such as whole life insurance, you can borrow against the policy’s cash value to access the funds you need.
What will you do with your stuff?
The average family has probably accumulated quite a bit of stuff over the years. When you downsize, you’ll have to find a way to get rid of what you don’t need. There are people and organizations who would love to have your gently used clothes, furniture, and other items. And, if you sell these items, you can use the money to help pay for your move or for new furnishings for your smaller home. Consider online garage sales or local exchange groups. These can be easy ways to give your items a second life. You may also want to think carefully about the items you take with you to your new home. Is there enough room for them, can they be transported safely? Will they fit in?
How will this affect your daily routine?
Downsizing can also have an impact on your daily routine. Maybe you had a gym at your old home and you will need to get used to going to the park for exercise. You might take some time to adjust to cooking in a smaller kitchen or taking your dog for walks rather than letting her into the yard. Consider what changes you’d have to make to your habits and routine and how long it will take you to adjust.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement income will reduce the death benefit and may affect other aspects of the policy.