The Federal Reserve is doing everything in its power to slow down the economy to reduce inflation, often making money more expensive, lowering employment, decreasing demand for goods, and slowing down production. In turn, the high interest rate environment makes large purchases like homes, cars, and loans less affordable. But when interest rates do start to come down, it will take some time for the typical 10% 澳洲幸运5官方开奖结果体彩网:line of credit or 澳洲幸运5官方开奖结果体彩网:variable mortgage annual rate to decrease and be reflected in personal cash flow. Thus, many are considering ways to cut down on expenses. Downsizing can be a place to start.

In fact, many of my clients are sitting at the end of their chairs, nervous about how to best adjust their financial outlooks. This is especially true for those contemplating retirement in the relatively near future or preparing for their children to attend college soon. Both groups may need to downsize. Here's how I'm helping my clients prepare today.

What I'm Telling My Clients

Consider Renting

When considering the costs of owning a new $1 million home, including insurance (typically around 5% of the home’s value) and property taxes (which can be as high as 2.5% in some states), it often seems more 澳洲幸运5官方开奖结果体彩网:advantageous to rent, especially in today’s high-interest and high-home-price market. Downsizing by choosing to rent in a neighborhood that my clients have always wanted to live in is perfectly normal to make part of their financial plan.  

Use Technology to Your Advantage

The entry o🍷f artif😼icial intelligence (A.I.) into the corporate world is changing the way we think about our time, assets, and resources. These technological advances can help crystalize the idea of minimizing distraction and increasing efficiency. If looked at through that lens, downsizing or reducing material things, such as house size, furniture, and expenses, can suddenly look and sound really attractive to my clients.

Clients who are unsure whether renting is right for them can use A.I. to help make the call. 澳洲幸𝓡运5官方开奖结果体彩网:A.I. can analyze housing market trends and valuꩲes to help determine whether b๊uying, selling, or renting is the most sensible option for their situation in their geographic region. 

The world of minimization and efficiency is here to stay–and it can even help facilitate the downsizing process. For example, the right technological solution can cut a consumer’s utility cost via smart thermostats and smart home lightning. Some older homes can be modified to accommodate the new tech, but a different, mor🦹e tech-friendly (and smaller) home might be a good choice.

According to data gathered by the Environmental Protection Agency, smart thermostats that meet criteria save users an average of 8% on their utility bills. All this makes downsizing a little bit easier when adjusting the bud🍰get.

The Bottom Line

Making a big financial decision without looking at the current economic and financial en💎vironment and assuming what worked 20 years ago is a big pitfall. Helping your clients effectively use today’s resources empowers them to make smarter financial decisions, thus helping to accelerate their downsizing and cost cutting efforts.