Fintellity Features: Downsizing

What is downsizing?

Traditionally this concept is used in regards to selling your home and moving into something smaller that is cheaper to run and maintain. However, creating a simpler life can include downsizing any assets as a method to spend less and save more money.

What methods can be used?

Cutting expenses can be done as follows:

  • Move into a smaller home
  • Downsize transport
  • Use comparison sights for insurance (reducing coverage or raising deductibles)
  • Book cheaper holidays or take stay-cations
  • Cancel non-essential subscriptions to products and services

Downsizing your home

When moving to a smaller home it should be easier to manage with a smaller mortgage, cheaper utility bills and less council tax, balancing the costs and stress associated with moving. The end-to-end process of moving house can be expensive when covering fees for solicitors and estate agents, plus stamp duty, surveying, conveyancing costs and van hire for the actual move itself. In regards to the move, you also need to consider reducing your belongings and furniture so that it fits into your new smaller home. Selling items and clearing out your home can be time consuming and stressful. That said, the long term cost savings saving from a smaller mortgage outweigh the short term stress from moving.

Downsizing your transport

There are many ways to save costs by downsizing your transport, from thinking about how you get around to the size of your monthly payments for car loans and hire purchase. Keeping a car on the road is very expensive from covering the costs of insurance, tax, MOT, servicing and the ever-increasing fuel prices. Examples to save costs are as follows:

  • Reduce the number of cars in a household
  • You take the car to be washed once a week
  • Swap your car for something smaller and more economical on fuel
  • Switch to second hand cars
  • Use your car less often

Current Situation

We live in a society that has been built on capitalism and materialism which is highlighted globally on social media as it becomes the norm to flaunt your lifestyle. This creates social norms and pressures to “keep up with the Jones’”, encouraging spending even if it’s not affordable. However, this quite literally comes at a price. Debts are soaring but wages and salaries are not increasing at the same rate, resulting in less disposable income and unaffordable debt. Therefore, before downsizing can happen, a serious change in mindset must take place and that is the determination to live a frugal and minimalist lifestyle which will help you save money.

Living the simple life

It can be liberating to have a minimalist lifestyle with less possessions and spending less money. The key to blocking out social pressures to spend or stay in the fast lane, is by reducing the noise which means less time using technology (e.g., watching less TV or scrolling less on social media). Finding joy in new hobbies and experiences that don’t require spending money and fill your time in a productive way can help you stay on track with your new found downsizing and money saving.

Stayed tuned for our mini series as we cover these related topics:

  • Side hustles
  • Savvy business hacks

There are lots of money saving tips available online. Take a look and see how many you can implement to help you become more saving savvy!

We look forward to hearing any feedback or receiving suggestions.

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Shardai Cosgrove

CEO and Fintellity Co-Founder

A financially savvy, bargain hunter and budgeter who also has over 10 years experience working for multiple FCA regulated payment institutions, specialising in high-risk sectors across Europe and the US.