There’s a reason they call it “downsizing” and not “down shaming.” Just because you move into a smaller space doesn’t mean you’re settling for less. In fact, if you do it right, downsizing can be like hitting the “reset” button on your life, less maintenance, lower bills, and more time for the things you actually enjoy in life.
I’ll admit, though, the idea can be scary at first. We get attached to our homes, our neighborhoods, and let’s be honest, our stuff. I used to think that if I gave up my big house, I’d somehow be giving up a piece of myself. Turns out, I was giving up a piece of my utility bill and my Saturday lawn-mowing obligations. Win-win.
Figure Out What You Actually Need
Before you even start browsing smaller homes, take stock of your real needs. How many rooms do you actually use? I once realized I had an entire guest bedroom that was really just a “laundry overflow and storage for things I forgot I owned” room.
When you start thinking in terms of function instead of square footage, you’ll see you can live comfortably with a lot less space than you think.
Embrace the Declutter
Moving to a smaller home is the perfect excuse to finally part ways with the exercise bike that’s been doubling as a clothes rack since 2004. Downsizing forces you to prioritize, which can feel like a burden, but ends up being incredibly freeing.
And here’s a little trick: instead of asking “Do I want to keep this?” ask “Would I buy this again today?” It’s amazing how quickly that separates the treasures from the dust collectors.
Choose a Home That Fits Your Lifestyle
Downsizing doesn’t mean moving into the tiniest place you can find, it means finding a home that fits your life now.
If you love to entertain, you might choose a place with a great open kitchen and living space, even if the bedrooms are smaller. If travel is your thing, you might want a condo with low maintenance and good security so you can lock the door and head to the airport without worry.
Think Location, Location, Lifestyle
One of the best parts about downsizing is that you might be able to move to an area you’ve always wanted to live in, maybe closer to family, near the beach, or in the heart of a walkable downtown.
When you’re not paying for a huge mortgage or high utilities, you might find you can afford a better location than before. And let’s be honest: location affects your happiness a lot more than having an extra 300 square feet.
Use the Savings Wisely
The financial benefits of downsizing can be huge, lower mortgage or rent, smaller utility bills, and fewer maintenance costs. But here’s where a lot of people miss the opportunity: they let that “extra” money just vanish into everyday expenses.
Instead, be intentional. Use those savings to build your retirement cushion, invest in experiences you’ve always wanted, or set aside for unexpected expenses. Your future self will thank you.
Don’t Forget Emotional Comfort
Your home isn’t just a building; it’s your personal headquarters. When you downsize, make sure the new place still feels yours. Bring along the furniture, art, and keepsakes that make you happy.
I once heard someone say that a house is just walls and a roof, but a home is where your favorite coffee mug lives. Keep the coffee mug.
Remember the Goal
Downsizing is not about giving up. It’s about upgrading your quality of life by stripping away the things that no longer serve you. Imagine more freedom, less stress, and money left over for the things that matter most. That’s not a downgrade; that’s a smart trade.
Final Thoughts
If the idea of downsizing still makes you nervous, think about it this way: you’re not losing space, you’re gaining freedom. And the less time you spend mowing, fixing, or paying for extra square footage, the more time and money you have to actually enjoy retirement.
In my book, Surviving Financial Crises in Retirement, I dive deep into how moves like downsizing can be part of a bigger strategy to keep your finances , and your lifestyle , strong no matter what the economy throws at you.
Don’t wait until it’s too late, get your financial house in order today!
Happy retirement planning!