3 Money-Saving Benefits when Downsizing your Home
Whether you are looking to downsize because your children are moving out or the downward-sloped Calgary economy, moving from a house into a condo can have lots of benefits. As many sources such as CBC and Finance Alberta stated, Alberta will stay in recession for the remainder of the year. It could take up to mid-2017 to possibly rebound. Now could be the perfect time for you to downsize your home and save on mortgage payments, utility costs, and medical costs.
From gifts to furniture to random household items, we tend to accumulate lots of stuff over time. It’s time to get rid of these “difficult to part with” items. What people don’t know is that downsizing and decluttering can help you save time and money in the long run. The following three benefits are something you should consider when you downsize:
Benefit 1: Saving on Mortgage Payments
If you have lots of stuff, you’ll need a larger space. Vice versa, if you have less stuff, you’ll only need a small space. Make sure you go through your belongings piece by piece and ensure they are things you can’t live without. Ask yourself and be honest. Is the item useful? Is it something you use on a daily or weekly basis? If not, perhaps you can let it go for donation, sell or store.
Now think about how much space you are going to need. Here is a method where you can calculate how much you can save:
- Calculate the square footage of your current space
- Note down your current monthly mortgage payment
- Calculate the monthly payment per sq.ft. = monthly mortgage payment / total sq.ft.
- Estimate the square footage of your new space (including any closets, extra bedrooms, storage, etc.)
- Calculate the monthly payment per sq.ft. for the new space
- You’ll see the estimated savings almost instantly!
For example, if your home is 3,000 sq.ft. and your monthly mortgage payment is $2300. You are paying $0.76 per sq.ft. per month. If you downsize to 1,200 sq.ft., your new monthly mortgage payment will be $912 per month. That’s almost $1,400 in monthly savings. If you downsize for a year, that’s $16,800 in total savings!
Benefit 2: Saving on Utility Costs
More space means you are paying more for heating and electricity. With less space, you’ll be able to consume less energy, save money and help the environment.
We will use the same method as above to calculate how much you can save.
- Use the square footage of your current space you have above
- Note down your current monthly heating and electricity costs
- Calculate the monthly payment per sq.ft. = monthly heating and electricity costs / total sq.ft.
- Use the square footage of your new space you have above
- Calculate the monthly heating and electricity costs per sq.ft. for the new space
- Voilà! What a big difference!
Similar drill, if your home is 3,000 sq.ft. and your monthly heating and electricity costs is $350. You are paying $0.116 per sq.ft. for utilities. After you downsize to 1,200 sq.ft., your new monthly heating and electricity costs will be $139 per month. That’s almost $211 in monthly savings. If you downsize for a year, that’s $2,500 in total savings!
Benefit 3: Saving on Medical Costs
During winter months, we spend almost 90% of our time indoor and in our home. If your space is packed with various household items, most likely you will choose to clean around them. For this instance, the likelihood of having poor air quality is high because cluttered space tends to be dustier and dirtier. Poor air quality may lead to greater chance of allergies reactions and sickness. It can also be quite stressful if you are facing a space full of stuff every day. Additionally, stress is an indirect cause to sicknesses as well.
The process of downsizing is not an easy one. It takes time and energy to decipher between what you want to keep and what you want to donate, sell or store. If you decide to go ahead, give yourself ample of time and work slowly. Remember, slow and steady wins the race. If you need more guidance on how to declutter, our five-part clutter-free guide can help you conquer the mess with ease.
Need more help?
Don’t know how to start? Consider hiring a professional organizer to help. At Maple Leaf Self Storage, we not only have many short and long term units available for rent, we also have a network of experienced Professional Organizers who can help guide you declutter your home or just trying to regain control of your space. Most professional organizers in our Referral Network belong to the Professional Organizers of Canada, an organization representing over 500 members across Canada.
We look forward to helping you declutter and create space. Please contact one of our 2 Calgary self storage locations or 10 locations in the greater Vancouver area for all your storage needs.