Downsizing your home | blog.firstffcu.com

Downsizing isn’t just about moving into a smaller space, it’s about creating room for what matters most, both physically and financially. Whether you’re preparing for retirement, looking to reduce expenses, or just ready for a simpler lifestyle, downsizing can be a powerful step toward financial freedom and peace of mind. Here are six essential tips to help guide your downsizing journey.

1. Identify Your Why

Start by identifying the reason behind your decision to downsize. Are you aiming to save money, reduce stress, or transition to a more manageable space? Knowing your purpose keeps you focused and motivated throughout the process.

2. Declutter with Intention

Don’t try to pack or remove things all at once. Go room by room and create categories – keep, donate, sell, toss. Start with closets, the kitchen, or storage spaces. Ask yourself, have I used this in the past year? Does it bring value or joy? Also consider digitizing photos and important documents to reduce physical clutter.

3. Measure Your New Space

If you’re moving, make sure to measure your new home to determine what furniture and belongings will fit. This helps avoid hauling items you won’t be able to use and encourages smarter decision-making.

4. Sell or Donate What You No Longer Need

Downsizing is a great opportunity to give your belongings a second life. Host a garage sale, use resale apps like Facebook Marketplace and Poshmark, or donate to local charities.

5. This is a Chance to Downsize Financially Too

Downsizing isn’t just about your physical space, it can also apply to your finances:

Review your monthly expenses and cut unnecessary subscriptions or services.
Consider consolidating debt or refinancing your mortgage if moving to a smaller home.
Set up automatic savings with the money you free up from downsizing.

6. Plan with Trusted Experts

From real estate to finances, downsizing involves big decisions. Connect with trusted professionals, like our team here at First Financial – to explore mortgage refinancing options, equity strategies, or budgeting tools to help you make the most of this transition.

Ready to downsize your space and upgrade your financial future? Let’s chat. We’re here to help you navigate the process with confidence and clarity.

*A First Financial membership is required to obtain any account or loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any account/loan.

Maybe the spacious home with the white picket fence you’ve always wanted doesn’t have the same charm it used to. Between increased maintenance over the years, unused rooms, and high monthly expenses – your home may be causing more headaches than it’s worth. If any of this is resonating with you, it could be time to downsize your home.

Choosing to sell and move to a smaller home is a big and likely emotional, decision. You might have lived in the home for decades or raised your family there – that’s why it’s important to know when the time is right and what resources are available to help. Keep reading to see when you should truly consider downsizing.

Your monthly housing expenses are high

The U.S. Department of Housing and Urban Development recommends spending no more than 30% of your monthly income on housing. If you’re paying more than that, you could be qualified as “financially burdened.” This means if you’re planning on retiring anytime soon, or will have a significant drop in income, it will be even harder to keep up on bills and monthly expenses. Downsizing will allow you to have a reduced mortgage or rent, cheaper utilities, and fewer maintenance needs. If you’re able to downsize 5 to 10 years before retirement, you can use the extra cash to save for travel or other activities.

Home maintenance is overwhelming

The older your home gets, the more maintenance it will need. Minor repairs, painting, caring for the lawn, and snow removal all take time and are physically demanding. Instead of throwing more money into maintenance costs by hiring a professional, consider moving into a rent-controlled space that has maintenance included. This will take the burden off of having to keep up with home repairs so you can focus on relaxing and enjoying retirement.

Your home doesn’t fit your needs

As we get older, our mobility changes – causing us to have different needs and requirements for our day-to-day lives. Whether it’s steep stairs, bathtubs without grab bars, or large yards that are impossible to keep up with – an inaccessible home is reason enough to consider downsizing. This is especially the case if you’d also have to invest in upgrades to accommodate your needs.

Financial considerations for selling your home

Before making a financial decision, you should also consider how much downsizing would cost. While you’ll be saving money in the long run, you’ll also need to account for any costs that come with selling your current home. Not only will you need to plan for initial updates if you want a higher value on your home, but you will also have to account for real estate agent fees and closing costs.

Downsizing takes time, planning, and research. Outside of finances, there will be other factors to evaluate and our financial experts are here to help! Contact us to get started, stop into your local branch, or schedule a video chat or phone call with our loan department.

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