If You’re Fearful of Downsizing, Consider Right-Sizing Instead

Are you an empty nester or see that time close on the horizon? With the upkeep on a larger house a hassle, ever-rising property taxes and sizable equity accumulation thanks to Marin’s recent spike in real estate prices, you may have contemplated downsizing.

However, downsizing often has a negative connotation. After all, our home is the source of so many precious memories and the storage and display place for all the wonderful things collected throughout our lifetime. It might be really difficult to even consider downsizing. The sacrifice seems especially painful for those of us in the Baby Boomer generation. Our success has been defined by the accumulation of material possessions: impressive houses, furnishings, cars and toys.

Is your ultimate goal to die with the most toys?

Surprisingly, it may be time for us to gain wisdom and learn some life lessons from the Millennial generation. Saddled with staggering student debt and uncertain economic prospects, Millennials have embraced the Minimalist Movement. They don’t want the 96-inch Big Screen TV and room-sized sofa. They would much rather go on a great trip, enjoy fine food or own the latest technology. As a result, Millennials often seek out downtown lofts with minimal square footage located in prime areas. Others are exploring the “tiny house alternatives.” When they do buy a house, they want less square footage and a more open floor plan. They recognize what they value in quality of life and “right-size” their resources to maximize that experience.

It is about quality…not quantity.

Downsizing and “right-sizing” are different. Right-sizing is the concept of living a lifestyle that fits your needs. It starts with identifying what is truly important to you. Is having that amenities-packed big house with a large yard really that important to you or would you trade that for other features like community, walkability and connection? It takes some self-assessment about what you want your daily life to “be” like. Right-sizing is creating a lifestyle that uniquely fits with our hearts desire. It is a very individual decision-making process with a variety of variables to consider.

In the end, trading larger homes for smaller ones can offer significant cost savings and additional benefits for many Marin homeowners:

1. Less Stuff- The larger your home, the more you need to furnish and maintain. When you take the time to carefully furnish and decorate your house with only a few things that you love and need, it frees up both your mind and your heart to focus on those things that bring you happiness.
2. Lower Utility Costs- Most people do not consider the true costs of what it will take to cool, heat or light a large home. Smaller homes come with smaller utility costs that can be further minimized with additional energy saving features, like solar, to practically eliminate energy costs.
3. Lower Maintenance Costs - Rightsizing can save money on taxes, insurance and general maintenance. Smaller yards often do not come with pools, spas and large thirsty lawns. While it is lovely to own a beautiful property, it is a mistake to overlook the ongoing costs to maintain those amenities. Maybe eliminating huge water bills, time and energy spent managing the gardeners, pool man and ongoing repairs are starting to sound good. Consider how often you swim in the pool or use the yard. Maybe a small drought-resistant, easy-to-maintain yard is a good alternative.
4. Less Expensive Zip Code- With the children gone, it can be the perfect time to move to a more affordable part of the country or simply to a nearby town with a lower ranked school district. You can still be in an environment that has the activities and amenities you enjoy while giving a young family the opportunity to benefit from the amazing Marin public schools.

Right-sizing is not just about the money. Sure it’s nice to be able to diversify your investment portfolio or do the things in life you truly enjoy, but the greatest benefit is the liberation of living a lifestyle that fits your priorities and financial resources. That’s not a sacrifice, that’s empowering.

Maybe it’s time to right-size your life!