# Downsizing: A Practical Solution That Can Change Your Life

- Link: https://greenlivingguy.com/2021/10/downsizing-a-practical-solution-that-can-change-your-life/
- Published: 2021-10-19T14:59:14-04:00
- Author: greenlivingguy

Downsizing seems like such a bad thing. The idea of reducing or eliminating assets
such as your house or car feels like cruel and unusual punishment. If you’re like
most people, the words failure and setback come to mind, particularly for Americans
that are used to living large and beyond their means. Be that as it may, downsizing
could be a blessing in disguise. It could be the most efficient way to get your 
finances in order so you can afford the lifestyle you desire. 

Don’t let society’s consensus of downsizing cause you to struggle unnecessarily.
Believe it or not, many people have taken a step back, relinquished possessions,
and found peace of mind like nothing they’ve ever experienced. Below is a closer
look at the potentially life-changing benefits of downsizing. 

![Downsizing a practical solution that can change your life](https://i0.wp.com/greenlivingguy.
com/wp-content/uploads/2021/10/minimalism-g31636054d_1920.png?resize=300%2C241&quality
=50&ssl=1 "Downsizing: A Practical Solution That Can Change Your Life - The Green
Living Guy")

## **Fewer Financial Obligations**

Downsizing can get you closer to financial freedom than you realize. If you’re living
in a house or expensive apartment that costs thousands of dollars a month, moving
to a smaller residence can cut those costs in half. 

You won’t just save on the monthly mortgage or rent, but you’ll reduce your utility
bills too. A homeowner moving from a house to an apartment also relinquishes themselves
from the [cost of maintenance](https://greenlivingguy.com/2026/06/ev-maintenance-cost-comparison-that-matters/),
repairs, and property taxes. 

The same is true for cars. If your car note is too high, trading your vehicle in
for something more affordable will save you thousands of dollars a year. If you’re
a savvy shopper, you might even find a car that doesn’t require financing. A smaller
or less expensive vehicle is also cheaper to insure. 

## **Improve Credit (Over Time)**

When you have high-balance or high-interest debts like home and car loans, they 
remain on your credit report until you’ve paid them off. If you’re already behind
on payments or at risk of foreclosure and repossession, chances are your credit 
rating is in the toilet. 

If you can sell your home or car for enough money to pay the loans off, then these
are financial obligations you won’t have to worry about. Your mortgage lender or
auto financier will then mark the loan as paid, causing your credit score to increase
within a few months. Finally, it eliminates the adverse effects of having a foreclosure
or repossession on your financial records, which could haunt you for years. 

## **Less Stress (Better Health)**

Trying to maintain bills that you can’t afford is stressful. If you’re dealing with
financial accounts in negative standing, the stress is increased by the threat of
further collection actions. However, if you downsize, you get rid of a lot of your
financial obligations, resulting in lower stress levels. 

As stress is the common culprit for many [health problems](https://www.mayoclinic.org/healthy-lifestyle/stress-management/in-depth/stress-symptoms/art-20050987),
reducing the stress in your life will lead to improved health and wellness. Believe
it or not, the healthier you are, the less money you spend on healthcare costs like
doctor’s visits, medications, and other treatments. 

## **Financial Reset**

Whether you got rid of your 2021 sedan or moved back in with your [parents](https://greenlivingguy.com/2021/12/sustainable-parenting-eco-friendly-ways-to-be-a-parent/)
to downsize, it’s an opportunity to reset financially. While you may still have 
bills to pay, they’re a lot less than before. You can use the extra money to pay
down your debts, increase your savings, invest, or even start a business. Then, 
when you’ve gathered your financial footing, you can figure out how to move out 
of your parents house or buy a newer model car without the stress. 

When you’re living in a world where living beyond your means is the norm, downsizing
can feel like an embarrassing move to consider. However, the reality is that it 
can be the most freeing experience. Downsizing minimizes your financial obligations,
improves your credit, reduces stress, and allows you to press the reset button on
your finances. If you make sound money decisions and implement solid management 
strategies during this time, you can upgrade your life in ways you never thought
possible.

![author avatar](https://secure.gravatar.com/avatar/df91669667126e1290c21ee0342c386e2da19d588d4d9ca6560bd82ed59a9641?
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 greenlivingguy

 The Green Living Guy, Seth Leitman is an independent power producer, a green living
expert, and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author,
Radio Host, Reporter, Writer and an Environmental Consultant on green living. The
Green Living Guy writes about green living, green lighting, the green guru guides
and more. Seth's books range from: # Build Your Own Electric Vehicle by Bob Brant
and Seth Leitman (2nd and 3rd editions) # Build Your Own Plug-in Hybrid Electric
Vehicle by Seth Leitman # Build Your Own Electric Motorcycle by Carl Vogel # Green
Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky # Solar Power For 
Your Home by David Findley # Renewable Energies For Your Home by Russel Gehrke #
Do-it-Yourself Home Energy Audits by David Findley # Build Your Own Small Wind Power
System by Brian Clark Howard and Kevin Shea # and more green living books to follow.

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