[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/personal-finance\/saving-and-budgeting\/downsizing-tips\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/personal-finance\/saving-and-budgeting\/downsizing-tips\/","headline":"Essential Downsizing Tips That Will Free Up More Money To Invest","name":"Essential Downsizing Tips That Will Free Up More Money To Invest","description":"“Reduce the complexity of life by eliminating the needless wants of life, and the...","datePublished":"2019-02-17","dateModified":"2023-03-02","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/#Person","name":"Logan Allec, CPA","url":"https:\/\/moneydoneright.com\/author\/logan-allec\/","identifier":4,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/2019\/02\/downsizing-tips.jpg","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/2019\/02\/downsizing-tips.jpg","height":3000,"width":6397},"url":"https:\/\/moneydoneright.com\/personal-finance\/saving-and-budgeting\/downsizing-tips\/","about":["Saving Money"],"wordCount":2571,"articleBody":"“Reduce the complexity of life by eliminating the needless wants of life, and the labors of life reduce themselves ”\u00a0 Edwin Way TealeWe couldn’t have said it better ourselves. We bring you the much-needed essential downsizing tips, so you can free up more money to invest.Table of ContentsToggleAdvantages of Downsizing\u00a01.\u00a0 Know Your Why2. Decide What Type of Downsizing You Will Do3. Remove a Few Items a Week4.\u00a0 Stop Buying New Things5. Become a Smart Shopper6. Storing Things is Ok7. Your Life is More Than Your House8. Begin Investing and Not Spending9. Attach Goals to Your Investing10. Begin Looking for a Smaller Place11. Be an Advocate of DownsizingAdvantages of DownsizingSave and make moneyEnjoy more free timeSmaller homes are usually happier homesSave on energy costsEnjoy more travelingEnjoy less but higher quality itemsKeep your life organizedGet out of debtHere are 11 downsizing tips to get you started.\u00a01.\u00a0 Know Your WhyIn everything you do in life, including your new downsizing project, you need to keep your \u201cwhy\u201d in the front of your mind.\u00a0Everyone is going to have a different \u201cwhy\u201d when they begin to implement these downsizing tips.ExamplesMore money to investToo tired of spending all your weekends’ cleaningKids moved out of the house and you have spare roomsYou are moving to a smaller houseFund your retirement and begin planning your estateSave money for children\u2019s educationLower cost of livingReduce environmental impact.The list can include a myriad of reasons. Finding your \u201cwhy\u201d will motivate you to implement the process.\u00a0One of the most popular reasons why downsizing your home makes sense, is to use your money for investment purposes.\u00a0We found the perfect way to get you started with investing.Pro Tip: Acorns already has over 4 million people on board investing and saving for their future. It has a lot of great features, such as allowing you to invest your spare change. They have a chrome extension called \u201cFound Money\u201d which locates incredible offers to allow you to save on purchases.Bonus: Another feature is their micro-investing account, and they offer plans for retirement funding too. This is an amazing platform to get you going. Click Acorns to create an account and explore all the features.Make sure you read How to Start Investing: The Rookies\u2019 Guide For Investing In 2019 to get more information on how to start.2. Decide What Type of Downsizing You Will DoThere are many ways to downsize your home, your lifestyle, and other areas of your life.ExamplesSell your house and buy a smaller placeSell your house and buy two smaller places, using one property as a rental to bring in more moneyKeep your house but use only\u00a0a portion of it while you learn how to make money with the empty spaceRe-invent your filing habits and go digital, freeing up space in the houseGet rid of excess things and close off portions of the houseRent out your house and move in with someone looking for a roommate.Depending on your situation, age, and motivators you are likely to choose one of the above methods to downsizing your home.Good to Know: If you decide you want to sell your existing home, and buy a smaller one check out Roofstock. An excellent choice to check out your options, especially if you are interested in Real Estate Investing.Pro Tip: If you are looking to downsize learn how you can buy a home for as low as $500 a month.Start learning more about real estate investment through our\u00a0 \u201cReal Estate Investing for Beginners: 27 Tricks You Can Leverage\u201d.\u00a0Bonus: If you choose to keep your house, but use a portion to generate money, Airbnb is the world’s leading online marketplace for hospitality.Read \u201c13 Creative Airbnb Hosting Tips That Will Earn You Money\u201d to maximize your experience with Airbnb.\u00a0Homeowners, as well as travelers, have a rating, which allows you to feel more comfortable using their service.3. Remove a Few Items a WeekPossibly the easiest part, of the downsizing tips we are outlining in this article, is to simply remove an item or two a day from your home.\u00a0This is a great suggestion if the idea of getting rid of things makes you feel anxious.\u00a0For the sensitive types, this might be an excellent way to start your downsizing adventure.There are many things you can live without if you put it to the test.ExamplesExcessive kitchenwareOld clothes you never wearWeird souvenirs that you never liked and don\u2019t know why you display themBooksChildren toysBroken electronics you will never fixOld shoesFurniture that simply collects clutter.Obviously, depending on the house, the list can be much bigger. Start with the things you care less about. If you have a hard time getting rid of them right away, place them in boxes, while making a promise to yourself that if in a week you don\u2019t look for them, they will be donated, sold or thrown out.Pro Tip: If you are ready to cash in on the items you no longer need to visit Decluttr. You can sell clothes, toys, DVDs and other household items through their platform.4.\u00a0 Stop Buying New ThingsThis is not so much a tip, but a rule for those who are looking to downsize.\u00a0If you are downsizing you need to stop buying things, unless they are necessary.\u00a0There are many purchases we do daily\/weekly that are simple a waste of our time and money.ExamplesSpecialized cleaning productsMore toys for the kidsMore clothesDecorative items (do you really need all those throw pillows?)Kitchen tools you use once every 5 yearsFood (we pile up way more than we need).Depending on your personality this list can be endless, and it can also be the reason why you never had any money left over to invest.Learn more about these 19 grocery shopping mistakes that are bad for your wallet.Good to Know:\u00a0\u00a0A smart way to overcome bad buying habits is to create a spending list every month, allocate part of your income to the necessities and only a small portion (if nothing at all) to excessive luxuries.Pro Tip: Before you even spend anything every month, take $100 (or more, depending on your income) and invest it.Bonus: Instead of going out shopping, learn how to make money by watching videos. In addition, instead of eating when you are bored, learn how to get paid to lose weight.\u00a0\u00a0An excellent company that pays its members for losing weight is HealthyWage. Some members have made up to $10,000 using HealthyWage.\u00a05. Become a Smart ShopperPart of downsizing is learning to be frugal and valuing money. We can achieve that by using a number of methods.ExamplesLiving in a smaller house will make it harder to accumulate thingsDeveloping a love for investing and saving will make you think twice before you spendLearning to use incredible new apps that save you money, give cash back, and rewardsDeveloping hobbies that can help you generate extra incomeLook for discounts and sales for your big-ticket purchasesBuy second-hand items.Applying one or more of the above methods will push you to make the mind-shift change needed to adopt a downsizing lifestyle.Pro Tips: Take a look at various apps that can help you save and make money.Long Game: A great app that makes smart financial decisions fun and rewarding by using games and rewards.Cushion: A bill negotiator app that will show you how to get back your bank and credit card fees.Ibotta: An app that pays you real cash money whenever and wherever you shop.Shopkick (use promo code MDR for a $5 bonus): An app that pays you for simply walking into stores.Bonus: Learn from 21 zero waste tips that can save you big bucks and from these 13 price comparison tools you need to use before going shopping.\u00a06. Storing Things is OkWe get it!\u00a0Sometimes it will be hard to throw away things.\u00a0This is especially true if the items are family heirlooms, special gifts or memorabilia.\u00a0It is okay to consider the possibility of storing them in a unit.\u00a0To help you decide what items are good candidates for storage, think of your average hotel experience.\u00a0How many things do you usually take with you to survive a two-week vacation?The rest are potential candidates for storage.ExamplesFamily heirloomsCollectiblesGifts from people you loveMemorabiliaYour children\u2019s first drawings \/ clothes \/ toysBooks.Anything that has provoked an emotional reaction is us might be hard to just get rid of.\u00a0If you can give some of the above items to loved ones, it might be a good solution.\u00a0The rest you can store away and make them part of your legacy.Pro Tip: If you have 20 little shirts from when your daughter was 6-months old, no need to keep all of them. Keeping 2 or 3 shirts will still conserve the emotion and memories.Learn how to make money on all the baby clothes you no longer will use and help new families make memories.7. Your Life is More Than Your HouseThis is one of my favorite downsizing tips.\u00a0It is the foundation in order to make long-lasting changes.\u00a0Taking a look at our lives, we can see how we define our self-worth by the things we own.An important part of the downsizing process is to be honest with ourselves.\u00a0Realizing that we more than just homeowners is a good first step. Many things should matter more than just bricks and walls.ExamplesFamily and FriendsHealthHobbiesThe daily impact we have on other\u2019s livesOur dreams and goalsTraveling.All of the above points are just as important as home ownership to our happiness.Pro Tips: Take a look at the following articles to begin putting together an action plan.\u00a0Start planning your traveling. Make sure you are set right with these best 15 hotel rewards programs that will help you earn free nights wherever you travel.Start dreaming of your future and all the things you can achieve by learning more on how to become a millionaire by 30.Start thinking of making your own business with these 71 Side Business Ideas That Will Help You Earn A Significant Amount\u00a08. Begin Investing and Not SpendingPart of making money is investing and getting your money to work for you.\u00a0Robert G. Allen once asked \u201cHow many millionaires you know who became wealthy by investing in savings accounts?\u201d\u00a0We couldn’t have said it better ourselves.\u00a0The goal of these downsizing tips is to ultimately offer you the ability to have more money, and more freedom.Good to Know:\u00a0Once you get that money saved up, you need to act fast.\u00a0The sooner you begin investing, the sooner you will be in a position to retire or to travel more. You can give back to loved ones or even help charities. No matter what the reasons are behind your need to make more money, we are here to guide you.Warning: Investments do require some trial and error, so be prepared to make small investments until you are comfortable that you got the hang of the trade.Pro Tips: There is a variety of great new tools and apps online that are super user-friendly for beginners.Acorns: Trusted by over 4 million people they make investing and saving super friendly. Their app comes with many features and they do publish relevant investment news.Personal Capital: They have a great promotion going on currently, where if you join now you get $20Yieldstreet: With these guys, you can explore and invest in alternative investments. They advertise a return of 8 – 20%.Binance: If you are ready to explore the world of cryptocurrencies, take a look at Binance. You can access and trade more than 100 cryptocurrencies.9. Attach Goals to Your InvestingAttaching a goal to your investing, is like knowing your \u201cwhy\u201d when it comes to downsizing your home.\u00a0Our goals are what drive us to push forward in life.\u00a0It is great to take a moment and answers honestly some important questions.ExamplesWhat do you want to achieve in life?What do you want to be remembered as?If you were sitting in an audience watching your life as a movie, would you be interested in it or walk away?What is the impact you want to make?Who are some key people you wish you could help?We hope the above questions guide you to find your investing goals.\u00a0While you are looking into investing, it will help you to learn about these 49 sites that pay you to do things you are doing already. \u00a0Pro Tip:\u00a0The more money you can put in your investments, the faster it will grow.\u00a0Remember it is much easier to get there, if you know ahead of time where you are going.There are many goals you can attach to your investing achievements.ExamplesTravelHelp peopleGive to charitySecure your children\u2019s financial futureInvest in othersCreate a companyBuild a school \/ orphanage \/ kid\u2019s center etc.You know best what your reasons are.Bonus: If you are a stay home parent take a look at these 21 non-sales work from home jobs that will bring you a steady income.\u00a0Staying at home will allow you to accelerate you investment education by having more time to read, study, and learn.10. Begin Looking for a Smaller PlaceEven if you are not 100% sure that you will downsize your home, it will be much easier to come to the decision once you start house-shopping.\u00a0Although giving up your current house might be emotional and stressful, think about the fresh start!\u00a0Focus on the positive changes.ExamplesNew clean houseNew uncluttered environmentAn opportunity to redefine your interior design choicesA great opportunity to be part of a new community and expand your network\u201cClean Slate\u201d feeling.Pro Tips: If you are currently in a rental property and you want to buy your own house learn how to save for a down payment on a house in 7 easy steps.If you already own a house and you are looking to sell it to downsize, then take a look at these 9 tools to help you get a free home appraisal.\u00a0House shopping, when you are not in a rush, can be a positive, fun and creative experience.\u00a011. Be an Advocate of DownsizingIt is always much easier to make any change in our lives when our friends and family join the mission!\u00a0Make sure you mention to your friends that you are considering downsizing your home, and share all the advantage of downsizing you read here today.\u00a0You might be surprised to find out that they are also looking into similar solutions.\u00a0If that is the case, you can help each other with all the physical and emotional changes that will be happening.\u00a0Get them excited with all the possibilities that are available.Wrapping It UpWe hope we gave you a lot of food for thought.\u00a0Remember to start small and see how you feel.Comment below and let us know if you have any more tips you find important during the process. 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