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Downsizing your home in retirement is pretty common among Baby Boomers. The reason is that it allows retirees to lower their monthly housing expenses, and move closer to friends and family. However, downsizing has its pros and cons.

Downsizing is a big decision that is mostly influenced by financial and emotional factors. The process is not easy but if you plan, then the transition won’t be as intimidating. We put together a brief guide to downsizing to help you prepare for the process. 

Financial Aspects of Downsizing 

Once you sell your current home, the influx of cash can boost your savings and grow your retirement account. Moreover, a new compact home with a low monthly mortgage payment can ease your budget. Especially regarding space, as smaller homes mean lower utility costs. 

However, downsizing has its expenses. For example, home insurance and property tax bill are inevitable costs of purchasing a new home. Another expense is the standard commission for a real estate agent, which is approximately 6 percent of the home sale price. 

Start Small and Plan Ahead

Downsizing is already complicated, and rushing things will only amplify the situation. However, by taking things one at a time, any situation can be handled. Start small and tackle one room before moving to another. Take breaks and give yourself enough time to rest in between.

Downsizing takes time and the entire process can take anywhere between 6 months to a year. Planning is a crucial part of downsizing. 

Hire a Downsizing Expert

Downsizing can be overwhelming, but a lot of professionals offer services to help retirees with the process. For example, some move managers are experts in helping older people and their families with the physical and emotional aspects of relocating.

Similarly, professional organizers help with decluttering your home and facilitating the disposal, donation, or sale of unwanted items. They may also set up procedures that help you stay organized.

Process Your Emotions

If you find yourself emotionally overwhelmed, then consider talking to someone. Invite a friend or family member to talk things out.

Your loved ones can help you let go of things you no longer need. They can help you process the sentimental attachment to belongings that have been around for decades. So talk it out or vent to a friend. This will calm your nerves and help you stay focused throughout the process. 

The overall journey of downsizing is often emotional and draining, but once you make it through the process, it will be worth it. 

Your loving Grandmapreneur,

Connie Inukai