With the FIOR (financial independence optional retirement) movement in full swing, the desire for a bigger home, car and more things is beginning to subside. As people are downsizing their lives to more humble abodes. Plus ridding themselves of their expensive assets to give themselves a fighting chance of achieving a life that isn’t shackled to the workplace for the entirety of their lives. US citizens are also moving to Puerto Rico in droves because of the fantastic tax incentives of living in Puerto Rico.
If your future looks as though you’ll be working until you’re 70 years old, choosing to downsize your life now could change that.
For a few ideas on what you can do to begin cutting back, there are three of many suggestions below to get you started.
Downsize Your Home
The most significant payment that leaves your account at the moment is undoubtedly your mortgage. To remedy your financial situation, it’s a natural step for most to consider alternative accommodation which costs less but still meets their needs.
This is especially true for empty nesters or those with small families. Type Sell My House on Google, to see what the web has in store to help you downsize.
From businesses buying properties to real estate professionals, you have a few options to choose from. However, this doesn’t mean you need to move to a shack in an undesirable neighborhood.
You may, for instance, just choose a smaller house in the same area.
Sell A Vehicle
Most households have more than one car. This in itself is a luxury, and is not entirely necessary for all families, with the second car, most of the time, barely being used.
From car tax to repairs and petrol, and the finance payments, your second car could be taking a big bite out of your hard-earned cash every payday.
To stop your vehicle from eating away at the money you could be investing in your future, consider selling it and carpooling to work in your other vehicle.
If you’re feeling gutsy and want to make a real difference to your money situation, let go of the cars all together. Instead, use your bike or public transport as a free/cheaper way of getting around.
Look At Your Spending Habits
Spending frivolously is a sure way to stop yourself from ever being financially free. Being frugal, however, allows you to save for potential setbacks but also to squirrel money away for the future.
Think about the amount of stuff you buy and how much you actually use.
It’s likely you still have clothes in the closet with tags on, and a gym subscription that leaves your account monthly that you feel too guilty to cancel. Downsizing your spending and planning what you need to buy for the month will stop you from overspending and appreciate the things that you do buy.
Not to mention, you will more than likely have money left that you can sweep into a savings account. Which is excellent news for your future!
You don’t have to jump into the deep end and start downsizing and selling all of your things to reach the milestone that is financial freedom. To create a new sustainable lifestyle, make small changes, to begin with. Each move you do make to downsize will bring you closer to a freer future.