If you have been dreaming of a downsize into a smaller house, I’m here to lend some words of encouragement and let you know that it is totally possible! Back in 2015, our family of 5 began the process of downsizing from a 3,400 square foot home to a 1,300 finished square foot starter home. It changed our lives in the best way! The thing is, I get that it can be totally overwhelming for people to even know where to start. In this post, I will break down the step by step process we went through to smoothly transition into a smaller house with three kids in tow!
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Does downsizing fit your plans?
For us, the biggest telltale sign that we were ready for downsizing was that we didn’t want to be spending our time or money paying for or maintaining the big house.
We were sick of spending hours cleaning and doing yard work, the mortgage expense felt like it could be put to better use. There was so much stuff we wanted to do with and for our kids. Things like travel, music lessons and even going out to eat more often.
By deciding what we wanted first, we built a spending plan completely around the life we wanted to live. We call it The Bucket List Budget. Instead of obsessing over money every month, we finally found freedom in spending and saving for the things we wanted the most! If you love the idea of living your life and spending your money stress-free, join our free The Power of Less training to learn more about the methods we used to transform our lives, travel more, and increase our savings and investments!
Test the waters
If you’re not quite sure yet whether or not a smaller home is the right option for you, there are ways to test it out ahead of time.
- Try vacationing in a smaller space for one week Click here to save on Airbnb
- Close off certain rooms to make your living space smaller
- Put items in boxes that you don’t think you need — see how it feels
Know your value
If part of the reason you are wanting to downsize is to help reduce your costs, make sure you are fully aware of your current market value. You can look at this price estimate up on sites like Zillow.
It’s important to be well aware of what your home will sell for so you can plan accordingly. In some cases, a smaller home doesn’t necessarily mean a smaller mortgage. The home prices may be more expensive as well as property taxes.
Research homes in the area you are hoping to move to. What is the cost of the type of home you are looking at?
Based on your home’s value and the average price of your new potential home, is moving into a smaller home a smart financial move?
What are the upsides?
Besides potentially reducing your mortgage costs, what other perks are you hoping to gain from smaller house living?
- More time
- Less cleaning
- Cheaper utility costs
- Less maintenance and upkeep
Make sure you are keeping the benefits of a smaller space in mind.
Remembering the big picture goals you have set can be so beneficial in helping you make life decisions like this. It’s the entire premise of The Bucket List Budget spending plan that helps us continually evaluate how we spend our time and money to make sure we are truly living the way we want.
More on downsizing:
- Get Rid of Half Your Stuff! How to Declutter Even With Kids!
- How This Family Downsized Into Full Time Travel
- The Total Guide to Downsizing Your House to Get Out of Debt
Set goals for your downsize
Now you know some of the perks you are hoping to take advantage of in a smaller space. What goals can you set so you have guidelines you can stick to?
Some things to consider:
- How will you best use any monthly mortgage savings?
- What size home do you want to fit into?
- How much will you have to get rid of in order to make that happen?
- Is there a time frame you want to make this happen in?
Personally, we set a goal of owning a home in the same town, we had a big sale before we moved and as much as we would have loved to have had a time frame, sometimes the housing market has other plans!
It’s important to remember to be patient and to not give up on your goals even if they take longer than you had hoped!
Get paid for your stuff
There is no doubt that moving into a smaller house will require decluttering some items. My best recommendation is to get paid for as much stuff as possible!
I’m a big fan of using Facebook Marketplace for things like furniture and other larger items. For electronics, I have found that Mercari is a great app. I was able to sell old, outdated iPods and iPads and still get paid well and most of these items sold rather quickly! Get my best Mercari selling tips here.
Other places to sell:
- Half Priced Books
There were so many amazing books, blogs, documentaries, and influencers who helped keep my focus during our downsize. Here are some of my favorite books that I read that inspired me to downsize in the first place: