There are a lot of unpleasant associations with downgrading and it’s not something most people do willingly. But, whether you have hit a rough patch financially or you are simply trying to live a new and better life, downgrading can be a brilliant way to free up some assets. And, if you do it right, your lifestyle doesn’t have to suffer.
Instead of thinking of downgrading as a negative, let’s reframe it as a chance to do more with less. Creativity is a big part of this and if you want to transform your finances, you’re going to need that creative spark and willingness to make it work.
Here’s where to start.
Downgrade Your Phone
You need a smartphone – right? Well, not necessarily. In fact, some people much prefer to have an old-fashioned flip phone! While you certainly don’t need to downgrade that far, what this does show is that for all that modern life appears to insist on having a particular technology, it’s really how you use it that counts. Which is why you should consider downgrading from the latest model to something a little older and already used.
Older smartphones tend to be a lot cheaper and you can usually go for a contract that just covers calls, texts and data. This way, you unburden yourself of the high monthly cost of renting your handset and you’ll quickly have more money in your pocket.
Trade in Your Car
Like phones, flashy cars are all the rage. But again, the difference in technology isn’t really so great as the price tag would have you believe. Selling your car and buying an older model that still runs perfectly is a good way to make a quick buck and you might find that your insurance comes down as well.
To find a good quality used car you might benefit from going to an auction. The AZ auction is held monthly with a catalog you can browse before you go. This gives you a chance to check out the cars available and decide how much you would be willing to bid. Just make sure you don’t get over excited and overspend!
Downsize Your House
Once you’ve downgraded your phone and car, the next step is your house. This is where you can make some significant money if you are feeling smart. However, this is a serious proposition so you should consider all the pros and cons before you list your house on the market!
The best thing about downsizing is that you will have a much smaller mortgage or could even buy without a mortgage. While you may have to sell some of your possessions to fit everything into the new, smaller space, you won’t have to pay so much in utility bills and cleaning will be a lot faster too, giving you more time for other things. Downsizing might also be an opportunity to move into an area you really like. Even if the property is the same price, moving can give you the chance to really upgrade your lifestyle.