Lesson 36: Take the Opportunity to Downsize - Debt and All!
Hello Revolutionists,
One of the reasons so many folk end up in debt is because they just have too much stuff. That would perhaps be OK if they owned it, but more often than not they don't. It was bought on credit, so not only do they not own it, but by the time they do it will be worthless junk, cluttering up their homes and their lives.
This week you can think about downsizing. That doesn't necessarily mean you must move to a smaller home, but it's something to think about. Wayne and I are already doing just that - planning to downsize our home (and the related clutter) in a couple of years when all the kids have finished their educations and moved on.
I'd like you to also think about the emotional and the economic value of the big-ticket items in your life. There's a quote by 19th Century designer and artisan William Morris that goes "If you want a golden rule that will fit everything, this is it: Have nothing in your houses that you do not know to be useful or believe to be beautiful."
Since GFC1 hit, downsizing has been the buzz word. But it's a scary word. It has connotations of failure and poverty. In today's society of bigger is better and more is even better, some people think that having fewer possessions means you can't afford to have more, or you can't afford to live the good life. Or they think downsizing sends a signal to friends, family and acquaintances that you aren't doing so well financially. Downsizing can be emotionally draining.
The Positive Side
Downsizing has had a bad rap, and that's unfair. There is a positive side to downsizing. Downsizing is simply letting go of the stuff that is draining you financially, emotionally and even physically (someone has to clean all that stuff). These items can be as small as an ornament or as big as a car you can't really afford. They can be valuable or have no financial value at all. The one thing they have in common is that they drain you rather than put a smile on your face or help to make your life easier by being useful (William was right on the money, wasn't he?).
Another word for downsizing is freedom. Freedom to relax rather than work and freedom from debt and constant repayments. The Great Australian Dream has long been to own a home on a 1/4 acre block of land, somewhere to call your very own. And part of that dream is to fill that home with lots of material possessions to give status. But often those possessions become a burden, making us miserable. The worst thing is often the misery isn't recognised because it's crept up so slowly, one possession at a time.
Your home might contain lots of possessions you've outgrown. Old toys for instance. You've kept them for visiting children to play with, or for your own children to pass on to their own children, or even for your grandchildren (when you get them) to play with. These toys are taking up space in your home or garage, collecting dust and just getting old. More often the reality is you've kept them because you have an emotional attachment to a time in life that has passed, and in the deepest recesses of your heart you miss that time. It might be time to downsize the toys - or whatever it is you've kept - and gain a little freedom.
Make Money Downsizing
Downsizing can be profitable. You can rent out your empty garage space or use your spare room to take in a lodger. You can save money by walking, riding a bike or using public transport instead of driving that car you can't really afford. You can enjoy more freedom because you don't have so much stuff to look after, you don't have to work as long or as hard to make those debt re-payments and you're no longer emotionally tied to stuff.
In your notebook make a list of the top 5 big-ticket financial drains, space taking or clutter creating things in your life. Here are a few common ones: multiple big screen TVs and computers (they not only take up a lot of space, they cost a lot to run too), that second car, excess clothing, jewellery or ornaments. Draw a line down the centre of the page and work out the pros and cons of owning these things.
Often, seeing this information in black and white, wakes you up to new possibilities. And that's the essence of downsizing: embracing new possibilities.
Be creative as you make your list. Just don't make any immediate plans to sell, donate or give away an item without consulting your family first, especially the person involved in the original purchase. You want to save money, not start a family feud.
Lesson 36 Challenge: Use this week to start your downsizing. Choose one area - a book shelf or the TV cabinet or a kitchen drawer - and go through it. Look long and hard at what you see: do you believe it to be useful? Do you believe it is beautiful? Does it make you smile when you see it/read it/touch it/wear it? If so, it's a keeper. If not, put it in a cardboard box for 24 hours. Then go back and see if you find it useful or beautiful. If you do, it's a keeper, if not it's time to move it on. Sell it, donate it, give it away, freecycle it. But don't put it back in the cupboard or drawer or back on the shelf.
One of the reasons so many folk end up in debt is because they just have too much stuff. That would perhaps be OK if they owned it, but more often than not they don't. It was bought on credit, so not only do they not own it, but by the time they do it will be worthless junk, cluttering up their homes and their lives.
This week you can think about downsizing. That doesn't necessarily mean you must move to a smaller home, but it's something to think about. Wayne and I are already doing just that - planning to downsize our home (and the related clutter) in a couple of years when all the kids have finished their educations and moved on.
I'd like you to also think about the emotional and the economic value of the big-ticket items in your life. There's a quote by 19th Century designer and artisan William Morris that goes "If you want a golden rule that will fit everything, this is it: Have nothing in your houses that you do not know to be useful or believe to be beautiful."
Since GFC1 hit, downsizing has been the buzz word. But it's a scary word. It has connotations of failure and poverty. In today's society of bigger is better and more is even better, some people think that having fewer possessions means you can't afford to have more, or you can't afford to live the good life. Or they think downsizing sends a signal to friends, family and acquaintances that you aren't doing so well financially. Downsizing can be emotionally draining.
The Positive Side
Downsizing has had a bad rap, and that's unfair. There is a positive side to downsizing. Downsizing is simply letting go of the stuff that is draining you financially, emotionally and even physically (someone has to clean all that stuff). These items can be as small as an ornament or as big as a car you can't really afford. They can be valuable or have no financial value at all. The one thing they have in common is that they drain you rather than put a smile on your face or help to make your life easier by being useful (William was right on the money, wasn't he?).
Another word for downsizing is freedom. Freedom to relax rather than work and freedom from debt and constant repayments. The Great Australian Dream has long been to own a home on a 1/4 acre block of land, somewhere to call your very own. And part of that dream is to fill that home with lots of material possessions to give status. But often those possessions become a burden, making us miserable. The worst thing is often the misery isn't recognised because it's crept up so slowly, one possession at a time.
Your home might contain lots of possessions you've outgrown. Old toys for instance. You've kept them for visiting children to play with, or for your own children to pass on to their own children, or even for your grandchildren (when you get them) to play with. These toys are taking up space in your home or garage, collecting dust and just getting old. More often the reality is you've kept them because you have an emotional attachment to a time in life that has passed, and in the deepest recesses of your heart you miss that time. It might be time to downsize the toys - or whatever it is you've kept - and gain a little freedom.
Make Money Downsizing
Downsizing can be profitable. You can rent out your empty garage space or use your spare room to take in a lodger. You can save money by walking, riding a bike or using public transport instead of driving that car you can't really afford. You can enjoy more freedom because you don't have so much stuff to look after, you don't have to work as long or as hard to make those debt re-payments and you're no longer emotionally tied to stuff.
In your notebook make a list of the top 5 big-ticket financial drains, space taking or clutter creating things in your life. Here are a few common ones: multiple big screen TVs and computers (they not only take up a lot of space, they cost a lot to run too), that second car, excess clothing, jewellery or ornaments. Draw a line down the centre of the page and work out the pros and cons of owning these things.
Often, seeing this information in black and white, wakes you up to new possibilities. And that's the essence of downsizing: embracing new possibilities.
Be creative as you make your list. Just don't make any immediate plans to sell, donate or give away an item without consulting your family first, especially the person involved in the original purchase. You want to save money, not start a family feud.
Lesson 36 Challenge: Use this week to start your downsizing. Choose one area - a book shelf or the TV cabinet or a kitchen drawer - and go through it. Look long and hard at what you see: do you believe it to be useful? Do you believe it is beautiful? Does it make you smile when you see it/read it/touch it/wear it? If so, it's a keeper. If not, put it in a cardboard box for 24 hours. Then go back and see if you find it useful or beautiful. If you do, it's a keeper, if not it's time to move it on. Sell it, donate it, give it away, freecycle it. But don't put it back in the cupboard or drawer or back on the shelf.