When the kids are no longer living at home, it undoubtedly forces you to think about what’s next. Should you stay in the house where you raised your children, or should you move onto another chapter? Choosing to downsize may have never crossed your mind, but since it can significantly reduce your living expenses, it’s certainly an option you don’t want to overlook.

Again, Why Downsize?  

Consider your current living situation. Is it really worth continuing to pay the same amount in utilities? Whether you’re ready or not, your lifestyle changes after it’s just you or you and your partner at home. All of that extra space you once needed no longer serves a purpose. Downsizing has several financial benefits. Aside from lower utility costs, it reduces other expenses like property taxes and homeowner’s insurance. The driving force for these particular costs is your home’s assessed value, which is mostly determined by square footage, bedrooms, bathrooms, and property acreage. With that said, scaling back and choosing to live in a less costly living space automatically creates savings. The same holds true for HOA fees. These are designed to give you access to amenities and services like the neighborhood swimming pool. Unless you still enjoy going for a dip regularly, it’s probably not worth the cost, much less a maintenance charge in case something goes wrong.

What’s the Best Way to Get Started?  

After making the choice to downsize, consider everything you need to do in order to make it happen. Before you can clear out the clutter or get rid of items you don’t regularly use, envision what your next living space will be like according to your new lifestyle. It won’t be like your current three- of four-bedroom home, so be intentional about what matters the most to you. Maybe with your next home, it’s important to have a pristine kitchen because you want to start cooking more gourmet meals. Or perhaps with your next space, you want a deck for the outside, so you can write in the evenings and have a glass of wine. Think about what you want and make a list.

While you’re busy contemplating your next home and chapter, you also will want to find ways to increase your home’s resale value. Remember that by increasing your home’s value, you will create more financial opportunities down the road, whether that’s for another home, retirement, travels, other special funds, or purchases like a boat or car. Not sure where to begin? Here are some home improvements you can make to boost your home's resale value:  

• Update the kitchen and bathroom. If you’re still living in the ‘70s, the time has come to modernize!
• Replace old windows with new ones. This is a great selling point since new windows lower energy expenses.
• Make household upgrades that you’ve been meaning to do for quite some time. You know what they are—like that knob that fell off two weeks ago or the broken cabinet door.
• Spruce up the yard and outside area. Your house doesn’t need to need to look like an award-winning botanical garden; however, it does need to be well kept. Shrubs shouldn’t be overgrown, and paint shouldn’t be chipping off the exterior. With some extra love and additions like lively plants and flowers, you can influence how a buyer feels about your home before they’ve entered through the front door.  

You may live well within your means now, but think about your financial future. Downsizing and boosting your home’s resale value will undeniably help you move forward in the next chapter of your life. Most importantly, it’s a ticket to freedom and possibilities.  

Photo credit: Pixabay

This article was written by our guest blogger, Paul Denikin of dadknowsdiy.com