Rightsizing, or the act of reducing something to make it more efficient, is a great concept to apply to home ownership. After all of the kids are moved out of the house, retirees find themselves in the position of having unused space. This can lead to increased costs in utility bills, property taxes, and maintenance. If rightsizing sounds like an attractive option to you as an empty nester, here are some steps you can take to plan out and optimize the size of your home.
Step 1: Clear Out Clutter in Your Home to Get a Better Sense of How Much Space You Really Need
Decluttering your home is a great first step to help you evaluate how much space you actually need. There are many methods to decluttering, such as the KonMari method, the Minimalist Game, or the Four Box method. The KonMari method asks you to consider how much happiness your items give you, while the Minimalist Game asks you to challenge yourself over a month to discard and donate unneeded items. The Four Box Method, on the other hand, gives you a system for storing items you may be unsure about keeping or removing, which can be helpful for the emotional process of parting with sentimental objects.
This also presents a great opportunity to connect with loved ones and family members. You can see if anyone in your family would like to help you sort through your possessions and take anything that would be useful to them. This allows you to have some extra hands to make light of the work, and to ensure your items are being passed along to good hands.
Step 2: Assess Your Need for Entertaining Space
Once you’ve cleared out clutter and have a sense of how much space your belongings take up, then you can accurately move to the next step: planning for entertaining. Retirees often have children, grandchildren, nieces and nephews who come to visit. A great option for hosting guests is using convertible furniture. Convertible furniture saves space, while offering the option of turning your living room into an extra guest bedroom. Exchanging old furniture for updated, more useful options can be a great way to not only refresh a new space, but to give you more room to house guests in a smaller space.
Another element to consider may be to simply have a conversation with your family about the option of them seeking other housing when they come to visit. While this can be a stressful conversation to have, setting a boundary can be helpful and important when making the decision to downsize your space. Additionally, setting a good example with money and making the right financial decisions for you teaches your adult children a valuable lesson. You’ve spent your whole adult life providing for your family, and now it’s time to make a decision that suits your personal finances, lifestyle, and safety.
Step 3: Figure Out the Financials
Now that you have an accurate idea of the size of home you’d like to purchase, it’s time to ask yourself financial questions. If your home is paid off in full, make a plan for the cash that’ll be left over from downsizing to a less expensive property. This ensures you won’t waste the money, and instead put it to good use. If your home is not completely paid off, there may be a difference between the amount you’ll end up with from the sale and the cost of the next home you wish to purchase. In that case, it’s a great idea to seek a mortgage preapproval to see how much house you can afford. Knowing where your money is going and how the move will shift your finances is key to a smooth transition to your new home and lifestyle.
Another key aspect is to plan for the costs of decorating your new home. If you’d like to update your furniture, this may become expensive, and it’s a good idea to plan for this expense ahead of time. Updating kitchen appliances, cabinets, and flooring can rack up major expenses as well. Planning a budget for these expenses is essential for making sure that you don’t have any surprises.
Saying goodbye to your home can be an emotional and stressful process. But when you have a strong plan, family support, and a more minimalist mindset, you can embrace the powerful and exciting adventure of a fresh start.
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