increase your savings by downsizing your home

How Downsizing Your Home Can Upsize Your Savings

Chances are you’ve seen those shows about tiny houses, read trending articles about decluttering, or listened to media personalities talk about minimizing their possessions. You may even know that you could decrease your monthly expenses substantially by simplifying your lifestyle, and part of that it all starts with decluttering and minimizing.

By definition, decluttering is the act of removing unnecessary items from an untidy or overcrowded place. Decluttering goes beyond simply reducing the number of things you own and can actually end up saving you a substantial amount of money.

So, what exactly does it mean to downsize your home? Just like it sounds, it means moving into a smaller living space to reduce your costs and simplify your life.

Obviously, that means reducing the number of things you own. This may sound like the antithesis of the “American Dream”, but it’s actually one of the best ways to achieve it. Here are the top three financial reasons to downsize your home and declutter your life.

Smaller Mortgage or Rent Payment

What’s the best way to minimize the size of your monthly bills? By decreasing the overhead of your mortgage or rent, which can sometimes be in the range of several hundred or thousand dollars in savings each month. With that tradeoff, do you really think you’ll miss all that space that’s just storing stuff you don’t perhaps need?

Lower Property Taxes

It could easily be said that, in the history of man, no one has ever loved paying taxes or has passed up the opportunity to pay less in taxes. When you minimize the size of your home, you inevitably minimize the amount of your property taxes.

Of course, you should do the proper research to make sure this potential savings holds true; homes in some areas might cost more, even if you do have a smaller home.

Cheaper Utility Bills

Large homes usually mean large utility bills. One of the ways to pay cheaper utility bills is by downsizing your home. Downsizing means moving to a smaller and more energy-efficient house or apartment. By doing so, you can reduce your electricity, gas, water, and heating costs, as well as your carbon footprint.

Other Benefits to Downsizing

Sometimes, money isn’t the only reason to downsize your living situation. Countless studies have shown that by living in a smaller home, can help you lower your stress (from doing all that upkeep), increase your free time (from less time spent on chores).

The hidden bonus is that that also means you get to spend more time with your family and friends. So, why not minimize your home? Start by decluttering, and end with a new, more purposeful life in a smaller living space.

Funding the Transition

While decluttering your life can be a great way to reduce your overhead and start a new life, there are costs associated with making the transition. For a financial kick start for starting over in a smaller place, or handling the occasional unexpected expense or cash emergency, look no further than the vehicle in your driveway.

A title loan is a short-term loan that allows you to get emergency cash based on the value of a vehicle you own. If you have a lien-free title to your car and no one can legally claim ownership of the car, you could qualify for a title loan of up to $15,000. Sound good? Here’s what you need to get approved for a title loan:

  • Proof of income
  • State-issued photo I.D.
  • Your vehicle for inspection
  • Lien-free title

Unlike traditional lenders, you could qualify even if you have bad credit. If you're tight on cash and responsible with your money, looking for a title loan near you might be just what you need!

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The Title Loan Approval Process

To start the simple process, fill out the online form and a store representative will call you to explain the process and answer your questions shortly afterward. Next, simply take the required items to the store location to complete the approval process. When you arrive, a manager will inspect your vehicle while you fill out paperwork, and in as little as 30 minutes you could have the cash you need.

This short-term emergency-cash strategy is perfect for big expenses or fresh starts in a smaller home. The cash, the choice, and the opportunity are all yours for the taking!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.