If You Want More Money for Retirement, Consider Downsizing Your Home
Downsizing your home can help you spend less on taxes and maintenance, which means more money to put into your retirement accounts.
Many people hope to retire mortgage-free with the house they’ve enjoyed for the last 20 to 30 years. But, few people consider the overall cost of home ownership which includes property taxes, insurance, and maintenance, which, on average, can amount to 3% to 4% of the value of their home. So, a home valued at $400,000 could generate $12,000 to $16,000 of yearly expenses depending on where you live. By downsizing your home, you could reduce your expenses significantly which would enable you to enjoy a better lifestyle in many other ways. Downsizing would be even more important if you retire while still paying a mortgage.
If you really want to enhance your retirement lifestyle, consider downsizing your home 5, 10, or even 15 years before retirement. Why not start living like a retiree now? Empty nesters can substantially boost their retirement savings while preparing for the transition into retirement by making gradual adjustments in lifestyle well before they retire. It’s something to think about while you still have options.