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by Aliza Zulfiquar
Your retirement is meant to be filled with relaxation and enjoyment, but for most seniors, financial worries cast a shadow over this golden stage of life.
Property taxes, rising housing costs, and utility bills are examples of limited financial freedom.
Retirees are starting to understand the importance of downsizing to smaller homes to reap numerous economic benefits. They are thus implementing this change of lifestyle for an improved quality of life.
Financial strain can cause high levels of stress, so it is crucial for senior citizens to dwell worry-free and make the most of their lives. Cutting down on financial strain is the ideal way to go about this. Fortunately, the statistics back the notion that tiny homes equal higher chances of financial freedom.
According to the “Integrating Transportation and Community Planning program (iTRaC),” it was discovered that 89 percent of people who own a smaller house possess less credit card debt than your average American, and 65 percent have none. Small homeowners also have about 55 percent more savings in the bank.
Let’s jump into some reasons why downsizing your property can help you to save money.
Lower Mortgage
A smaller home does not mean you have to compromise on aesthetics by opting for a simple, lifeless space. You can still buy one with stunning infrastructure and a beautiful but small porch with a balustrade for that additional elegance.
While buying smaller homes does not limit your design choices, it can help to decrease the amount you spend on your mortgage, which is a huge relief on a homeowner’s financial strain.
There’s a reason that the word “mortgage” translates to “death pledge” in old French. If your retirement period is looming and you haven’t paid off your house, downsizing to a smaller home might be an excellent way to escape a heavy financial burden.
Simplified Maintenance
The reality is that a bigger home will always be more costly to maintain. A traditional-sized home comes with extensive maintenance tasks and upkeep. Constantly ensuring that every corner of your house is clean can be stressful. This leaves no time for cultivating hobbies and spending days of retirement in peace. Not to mention, a lot of maintenance tasks for big homes are incredibly expensive.
In contrast, smaller houses need less maintenance on both the inside and outside. With fewer rooms and a smaller exterior, retirees can minimize their time and energy in cleaning, repairing, or doing heavy yard work, which consequently means more time for relaxation and enjoying life to the fullest.
Sustainability
Prioritizing environmentally friendly choices will not only contribute to saving the environment, but it will also save on costs. Additionally, it helps to promote healthy living for seniors who may or may not be struggling with health complications.
Smaller houses, in particular, excel at staying eco-friendly. Their small sizes enable them to have a lower ecological footprint, as they require fewer resources for construction and operation. You can effectively and in a cost-free way incorporate solar panels, composting toilets, and other energy-efficient systems, further reducing the environmental impact.
Financial Flexibility
You can free up equity from selling your larger home by downsizing to a smaller one. Retirees typically use the extra financial flexibility to help invest in experiences, fund retirement accounts, or travel.
Every eliminated or reduced expense associated with living in a smaller house will provide a buffer against unexpected financial challenges that may arise during retirement.
Capitalizing on home equity sometimes happens to be the prime source of wealth for the retired. You can move to a smaller house by selling your previous home, significantly enhancing your financial condition.
Lowered utility bills
Expenses, like utility bills, remain constant irrespective of where you’re living, but when you get a smaller home, you can exponentially slash your utility bills.
This is because smaller homes will have more limited electrical points, meaning you wouldn’t have to spend as much on energy. It’s the same for water bills. It also means you’ll need less money to furnish, cool, or heat. It’s essential for retirees to cut down their expenses because, after retirement, you have to start living on a fixed income. Having a smaller home makes cutting down costs far more achievable.
Financial security is not the only thing that comes with smaller homes. You can achieve comfort, luxury, and peace. It gives you more time and space to travel as well as potentially allowing you to live closer to family and friends. In your retirement, your priority should be living your days in serenity around the people you love, and with smaller homes, the financial advantages make that more easily attainable. We hope you find this article insightful.
