What is downsizing?

What exactly does the term “downsizing” mean? Most likely, it means different things to different people. Some definitions we’ve seen include:

• Sell ​​excess personal property to make more space.
• Moving to a smaller, more manageable home.
• Profit from investing in personal property
• Reduce your mortgage payment and living expenses.

Perhaps the simplest definition of downsizing is “get by on less.” It means getting rid of all the excess baggage you have in your life, including expenses, personal property, collections, or garbage … and living a simpler and less complicated life.

If you are considering a major downsizing or move in the near future, you are not alone. In fact, a significant portion of Americans ages 50 to 75 and older are shrinking in size today. And why not? Most likely, one or more of the following statements apply to you:

• Your children have grown up and gone.
• Your house has become an empty nest.
• You are retired or are preparing to retire.
• You are ready to get close to your children or to live with them.
• You live in a bigger house than you need now.
• Housework and garden are becoming too difficult to maintain.
• You are simply tired of house and garden work and would rather spend your free time doing something else, like traveling.
• Increasing taxes and maintenance costs are becoming too heavy a burden.
• You have lost your spouse or partner and are now living alone.
• You are ready to move into your home on the coast, in the mountains, on the lake, or in your smallest dream home.
• I would prefer to live in a warmer climate all year round.
• You’re ready to take advantage of the home equity you’ve built up.

The reasons for the reduction are many. Each person’s life tells a different story, but many of us have reached the same point in our lives. What we are seeing is the “Grayification” of America and an entire aging generation that is ready to shrink and is ready to move into the next phase of life.

Consider this:

• Between 2010-2030, the number of Americans age 65 and older will more than double to 70,000,000. (Delaware Valley Regional Planning Council).
• In Philadelphia alone, 1 in 5 Philadelphians will be over 65 by 2025 (same source).

Never lose sight of the fact that “downsizing” is generally about money. When a business “downsizes,” it fires staff to cut costs. It strips away resources you no longer need and reduces fat, all in an attempt to increase operational efficiency.

“Downsizing” is no different. When you “downsize” your home, you’re essentially looking to cut expenses, get rid of resources you no longer need, and cut fat – all in order to increase the operating efficiency of your home.

The ultimate goal of Home Downsizing for many is to increase operational efficiency in your life, thus giving you more money, less work, and more time to do the things you want to do.

Home Downsizing Tips and Strategies

Downsizing your home means different things to different people. What does it mean to you? What are the three things you would like to accomplish once the downsizing phase of your home is complete?

• 1. ___________________________________________________________
• 2. _____________________________________________________________
• 3. _____________________________________________________________

Home Downsizing is similar to Business Downsizing in that its goal is to increase operational efficiency by reducing expenses. Downsizing is generally about money. How much can you save by downsizing your home?