One of the harder facts of life is that no matter what age we are or how accomplished we may have been in our past, sometimes the means by which we live can deteriorate. That is, you might lose your job, or become responsible for other people without expecting to be, or have to deal with a health issue.
Of course, the opposite is also true. You may gain a great job, or find your true passion, or move in with someone you love and manage your affairs accordingly. That being said, downsizing is often a much more worrying process compared to expanding, where spending money and making plans for the future can often flow freely.
If you do find yourself in a “downsizing period,” that’s not a slight against your character. In fact, here there’s an opportunity to learn what really matters, what you really need, and also how durable and resilient you can be. That’s cold comfort, but they’re helpful lessons and can guide us through the tough times.
If you’re experiencing a process like this in your life lately, we’ve put together some tips to help you downsize with care and clarity. We hope it helps:
Consider What You Can Sell Or Downgrade
It’s a good idea to look at your major monthly expenses first. The biggest one for most people, after housing, is often their vehicle. If you have a costly car payment, it might be time to sell it. There are always car buyers looking for a good deal, and you could get a much cheaper, reliable car to get around. This single move frees up a lot of cash flow every month.
But if you can’t spare the big items, look at the small expenses you often have that add up. Are you paying for five different streaming services you don’t watch, or a gym membership you never use? Even one could save a little expense per month.
Plan Temporary Cost-Saving Provisions
It’s easy for a downsizing guide to tell you to move into a small studio flat, but sometimes you just need a temporary plan to get you through a rough patch. A great place to start is your food budget. Eating out or getting takeaway coffee every day might not be your usual habit, but even now and then a wasteful spend might not be justified at this juncture. You might find it helpful to commit to cooking all your meals at home for the next three months and cook in big batches, just to see how much you save.
You can also put a temporary freeze on non-essential shopping. This means holding off on new clothes, gadgets, or nights out. Remember that it’s temporary, but still a focused way to build up your savings or pay down debt while you’re getting back on your feet.
Consolidate Debts Simply
If you’re juggling three different credit card payments and a personal loan, it’s very easy to feel stressed and miss a due date. Consolidating mght save you money, especially if you use a debt charity to negotiate on your behalf. The process involves grouping all those separate high-interest debts into one single monthly payment, ideally with a lower interest rate. In some cases, you might be able to talk to your bank or a credit union about a consolidation loan, and just start paying them before anyone else.
With this advice, we hope you can more easily downsize with care.
