• February 28, 2023

The 3 Items in Your Life You Should Downsize Now if You Want to Be Wealthy Later in Life

It is so easy to worry about the future, and this is especially true in the current financial climate. While so many of us feel like we’re making sacrifices, if you want to benefit in the long run, the solution may be about limiting aspects of your life now so you can reap the rewards further down the line. Downsizing your life doesn’t sound like an ideal solution for many, but it’s about understanding where you can constrict your life so you can benefit in retirement or sooner. Let’s show you some of the things you may wish to shave off slightly or remove completely.

Your Car

A lot of people place too much value on their cars. Many people view it as a status symbol that demands people stop and stare when they are driving around. The problem is that a car depreciates in value pretty quickly! If you are thinking long-term, your car is the best place to begin so you can conserve your finances. Dealerships like MyCar provide high-quality second-hand vehicles, but you can also get into the mindset of looking after your car better. Being handy with certain aspects of maintenance and driving more economically are such little things that can do a lot to extend the life of your car. 

Many people are being stubborn at this point, and not investing in hybrids or electric vehicles, but right now if you are opting for a big showy Mercedes-Benz, it’s very likely it will depreciate in value as the world becomes more in tune with hybrid or electric vehicles! So maybe it’s time to not think of your vehicle as a status symbol and really downsize it to something cheap to operate.

Your Home

Another status symbol for many, our home is something that we have worked hard all these years to get. If you find yourself struggling to pay the mortgage at the end of the month, you will have to come to the decision as to whether this house is actually going to be the millstone around your neck that causes you to work way beyond your retirement. This is especially true in the case of those people who are self-employed. 

Is it better for you to opt for a home where you can easily pay the mortgage and make a few upgrades, rather than having to upsize in a few years’ time? It’s important to remember that when you are a couple of decades away from retirement you have to start planning how to downsize your life. You could sell up and move to a smaller property now or if you are determined to have an amazing home, you must ask yourself how much work it is to maintain these things. 

People have larger homes, but they’ve also got to invest in landscape gardeners, cleaners, and all of the other extra expenses to ensure their home looks picture-perfect. Instead, it might be better for you to opt for a mid-sized home that has just enough space but is also one that you can extend if necessary for a tiny bit extra on the mortgage every month so you can live there for the rest of your days but also find that you’ve paid off the mortgage and bills within the first couple of weeks of every month. Doing this means you’ve got a lot more disposable income to spend on the things that really matter, like experiences and saving for the future.

All Those Daily “Essentials”

From cable to Netflix, if you want to see a big difference in the amount of money you save every month, you’ve got to think about your day-to-day life. We all have an expense that keeps us sane, especially when it comes to sports or our favorite shows, but if you are looking for ways to save money for the future, you have to consider which parts of your daily life can benefit from downsizing or removing instantly, like your grocery shopping. 

So many people waste food, and instead of throwing out food because it’s gone past its sell-by date, getting into the habit of cooking and reusing leftovers are simple ways for you to add to your savings. It can be difficult to make changes to your lifestyle, but ensuring you cut back on the things that you think are essential can actually make a massive difference in the long run. We view our subscriptions and our food choices as status symbols; the problem is when we all try to keep up with the Joneses- we end up getting into debt! 

If you really want to be rich later in life, it might be time to stop thinking about how you are perceived and cut back on these three things.