As retirement approaches, you might be considering downsizing, or you might already be embarking on the journey. It can be a wise decision to think about moving into a small home whether that be in a retirement community or just one that will be easier to maintain (if you’re considering a tiny home check out our blog post on them!). Regardless of what direction you are headed, if you are considering downsizing, there are nine common mistakes you want to avoid. Next Avenue recently shared these mistakes in their article, “9 Common Downsizing Mistakes and How to Avoid Them”.
The first mistake to avoid, according to the article on Next Avenue, is downsizing prematurely. It can be easy to give into the peer pressure of downsizing if you are seeing others in your age group doing it, or if you assume that you are at the age where you must do so. Instead of following the herd, take time to consider the pros and cons to downsizing, and examine your situation. You may find you can wait to downsize, or that downsizing earlier might fit the lifestyle you ultimately want. But the key, as pointed out on Next Avenue is to make sure you are doing it when you are ready.
The second mistake is downsizing without a plan. Know what your downsized life is supposed to look like. Going into it without a guiding strategy can leave you confused about what to do and frustrated. By planning with your dream result in mind, you can line up the necessary support and take the steps to make it more successful. Consider location, if you want to travel, distance to family, and what you might need or not need to furnish your new home.
Another mistake people frequently make is that they don’t think about the lifestyle they will be leading or want to lead once they’ve downsized. A home away from the city might sound idyllic but consider access to resources and social groups. Or maybe it’s the opposite—staying in the city might prevent you from achieving the relaxing and more secluded lifestyle you need to truly find rest and joy. Consider what activities you want to have access too or if you’re okay with making concessions like a longer drive for a more preferable location.
The fourth mistake and potentially the one that can cause the most frustration is putting off downsizing. You don’t want to be rushing to downsize because that will cause more stress and leave more room for mistakes and unsatisfactory results. While the first mistake was downsizing to early, you have to balance that with not downsizing too late. This requires you to be honest with yourself and loved ones about when the best time will be. In some instances, making this adjustment sooner rather than later can be more beneficial.
Thinking you must just throw everything away is another mistake. You don’t want to have to replace anything you already own (or maybe you do and want a fresh start). Envision how the items you’re sorting might fit or not fit into your new lifestyle and proceed from there. You can also explore donating, doing a yard sale, or even selling items online. If you start the process with ample time you might be able to make some extra pocket money in your downsizing process or help others in need.
The sixth mistake people make is giving in to help they don’t need. While getting help from loved ones is much appreciated, don’t feel pressured to accept out of a place of guilt. While loved ones can be well intentioned, they might have different priorities from yours, and it can make the process harder for you or cause you to rush. If you do accept help, set clear boundaries and expectations. Talking out your vision with loved ones will help you better formalize your plan, help them help you, and even open the door for loved ones to share their own creative ideas that you might want to incorporate.
Next Avenue points out that the seventh mistake is trying to tackle the whole house at once. Instead, take it one room at a time. Trying to do it all at once will increase the feeling of being overwhelmed. By keeping the dismantling, organizing, and boxing to one room, you will be able to manage it. Being able to step away and take breaks is also important. This process can be quite draining, and as Next Avenue states, “It’s a marathon, not a sprint.”
Another caution is not to dwell on what you’re giving up. It can be easy to feel morose about parting with items you worked decades to accumulate, and so many things have memories and emotional value attached. You will still have those memories. Focus on the positive. Passing family heirlooms on can be rewarding because your loved ones probably have just as much happiness attached to them as you do, and they will be able to pass that on. You might also be helping those in need through donations. Lastly, there are cost benefits to downsizing, which will free you up to make more memories.
The ninth and final mistake, is rushing the act of downsizing. While we’ve touched on it, it does deserve its own section. Taking time to go over items and their sentimental value and deciding what to do with them allows you not to feel like you just haphazardly got rid of things and leave you feeling unsatisfied later. As you begin looking for your next residence, don’t sign the dotted line on the first place that becomes available; examine your options, do research, go on site visits, meet with people, truly make sure you are going to enjoy your new home. Again, balance here is key. You don’t want to dwell on the process, start it too early, or wait too long to begin. This is where research and planning will come in handy. By critically approaching downsizing and ensuring you’re in the right frame of mind, this process can be more freeing and refreshing than you might originally perceive.
Preparing for this aspect of aging is not an easy process. Aside from just organizing and sorting artifacts from your life, there are also financial aspects to the process. If you sell your home or wish to change the ownership of it, or you are acquiring a new home, these are asset changes that need to be aligned with your estate plan. At Family Estate Planning Law Group, our ongoing client care program includes updating your plan according to these changes at no additional cost, and you can set up a time to meet with our team for guidance in financial implications or advice on consolidating and simplifying your assets.
To learn more about this, other estate planning topics, and our ongoing client care program, visit our website, explore our blog, and schedule your complimentary consultation today!