Downsizing... for the longest time it was a scary word. Hearing it brought images of a Fortune 500 CEO walking into the boardroom and letting his board of directors know they need to "downsize", AKA lay off 50% of their staff.
When it comes to housing and personal finance, however, downsizing can be a very good thing, and it is something homeowners should strongly consider if they want to free up capital and achieve some substantial savings.
At a time when regional markets like Vancouver and Toronto are heating up and becoming overvalued, many people are seeing the wisdom of downsizing; you get to save money while increasing your quality of life. When it comes to downsizing, there are a few dimensions, and each of them brings about distinct benefits.
Although downsizing is traditionally associated with seniors and retirees on fixed incomes, younger families actually stand to benefit the most. Why? Achieving financial comfort earlier in life will allow them to help their children attend university, go on vacations, and enjoy their lives without worrying about money.
Here five ways you can downsize your household life to maximum your advantage.
Choosing Affordable Communities
Housing affordability is the first step to consider when you start on your downsizing journey, and this has a lot to do with the community you choose. In speculative housing markets (like the aforementioned Vancouver and Toronto), the cost of living and high real estate prices are not helpful to housing affordability. It's a different story here in Edmonton, which is a far more reasonable place to live.
Edmonton offers not only affordable housing but also a high quality of life. In recent years, new residential communities have been developed in Sherwood Park, Devon, Beaumont, Leduc, and others. These communities offer move-in ready single-family homes, duplexes, and townhomes at very affordable prices. To estimate how much home you can afford in Edmonton, you can use an online mortgage calculator to come up with a maximum monthly housing cost.
Reducing Your Living Space
How much space do you really need? Is happiness dependant on square footage? In a late 2016 article published by the Globe and Mail, a sociology professor at the University of British Columbia explained the transformation of certain residential markets such as Edmonton and Vancouver, where newer single-family homes are featuring smaller living spaces.
Not only are home buyers paying less for reduced living space, they are also learning to make the most out of their new homes This means getting rid of clutter and letting go of outdated household living ideals. These days, we're more interested in seeing our children play in community green areas and city parks than having a big yard.
Detaching from Household Items
Detaching from Household ItemsDownsizing means learning to live with less. Modern families in Japan are embracing minimalism, a lifestyle that draws inspiration from Zen Buddhism as well as from the design aesthetic the late Steve Jobs established at Apple. As a result, many Japanese households do not have a lot of stuff and feature a simplistic, yet functional, decor. To achieve this effect, it helps to think about all the things you have and simply do not use.
Unless you plan to hold wine tasting parties at home, how many sets of wine glasses do you need? Why do we have so many electronics in our bedroom if we mostly use them to sleep? Getting rid of clutter is not just a part of downsizing; it can also be a key to personal happiness.
Becoming Energy Efficient
After moving into a smaller home that holds less stuff, your life, by default, becomes more energy efficient. You're consuming less energy overall; you'll notice a welcome reduction in your heating and cooling costs, plus a variety of other areas in your life will show a decrease in costs.
Moreover, the newer move-in ready homes tend to be more energy efficient than homes built decades ago.
A Healthier And Simpler Lifestyle
The downsizing trend is part of a larger philosophy of living simpler lives for the sake of health and happiness. As mentioned, many young families are embracing principles of minimalism, and they are not doing this solely because they want to spend less money each month.
If any of this reasonated with you, then you should strongly consider downsizing. After all, what doesn't sound appealing about a simpler life with less clutter and fewer expenses to worry about?
