This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Downsizing is sometimes the cure to everything
Every adult who can provide for themselves should do so accordingly, so they don’t have to rely on someone else. Financial independence is a gift, not a burden.
The high rent and outrageous mortgage costs can come with fancy and large abodes, but is it worth it at the end of the day? I’m not too sure anymore. Even if you can afford to spend the money, it doesn’t mean you have to…
I recently came across a fantastic opportunity to decrease my housing costs multiple times over. Shall I take it? Hell yes. Even if it’s not long-term, the financial savings are taking the cake. Not only will I be able to invest that extra money, but I will no longer be throwing away pointless cash on an empty zero-bearing-fruit investment (i.e., rent).
Whenever you have the opportunity to decrease your housing costs (the priciest expense for American households), do it. The benefits often outweigh the cons (i.e., downsizing). Plus, you’ll only create more breathing room for your finances. You may even consider taking a lower-paying job that adds less stress to your life, or you might be motivated to take a higher paying job to increase your financial resources even more.
Downsizing Benefits
Create more financial wiggle room for yourself by stocking extra funds in your emergency fund.
Invest more cash into long-term investments, creating future income without much effort.
Re-evaluate your budget and housing costs going forward. Do you need to increase your housing costs again? Is there a way to make this a long-term thing?
When you cut your expenses, you’re giving yourself a raise. When you give yourself a raise, you create more economic opportunities for yourself and those financially dependent on you.
Avoid getting caught up in materialism; it’s an empty pursuit that leads to a road of nowhere.
Reach financial independence faster due to lower expenses.
Real Estate Investing
Of course, you can still have your hands in the real estate pot with either physical rental properties or REITs. However, opting into other living arrangements can help accelerate your timelines for your financial goals.
We don’t have to live in our investment, though. I do realize many people get into real estate through the first home they buy. Many people never end up paying off their homes, though. So for the duration of living in the home, they can never access the value unless they sell or utilize the equity on something else.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.