With current economic situations being what they are, many people are looking for opportunities to cut their monthly expenses. While there are plenty of ways to trick the cable company into giving you a discounted fee, most of your utility bills aren’t budging in any direction except upwards. They also tend to comprise the smallest portion of your monthly expenses.

Your mortgage payment or rent probably makes up the largest portion of your monthly outlay, typically ranging from 30% to 50% of your income. While it may prove difficult to sell your home, doing so and downsizing to a smaller place can help you save money each month.

But What About All of My Stuff?

You’ve undoubtedly accumulated a lot of possessions over the years that have sentimental value. Some may even have cash value, as can be the case with precious collectibles. Chances are, though, most of the stuff you’ve got lying around is hardly ever used.

The first step to downsizing is eliminating all of that excess junk that you’re just too attached to. Whatever’s left can be stashed away in an inexpensive, climate controlled storage unit.

Doing the Math to Ensure it All Adds Up

Of course, downsizing your living space involves a lot more than crunching some numbers, but that’s where you’ll want to start. All of the planning and effort that goes into coordinating a move just won’t make sense if it doesn’t result in the reduction of expenses you’re hoping for.

Start by checking out sites like Craigslist.org, or Realtor.com to find potential properties that you can rent or purchase. This will give you a fair idea of how much money you can save on your housing expenses each month.

Next, look into the cost of local storage facilities. Different sized units will have different costs, and sometimes you can get a discount if you’re able to prepay for a one-year agreement.

If the cost of rent (or mortgage payments) at the new space plus the cost of storage is at least a few hundred dollars less than what you’re paying for living expenses now, it might make sense to move.

The Difficulties of Selling Your Home

In some cases, you might find it virtually impossible to sell your home. Even if it’s easy to do so, you might hesitate when it comes to giving up the investments you’ve made in your home.

While we can’t provide any solid advice on helping you with either of these situations, your local realtors can. In some cases, homeowners have opted to rent their property to those who need a larger space to eliminate the expense without actually giving up their investment.

They rent a smaller, far more affordable unit, and when they have enough equity (and a buyer interested in purchasing at the asking price) they finally let the property go. Of course, this is a far more complex process than this article can cover, which is why it makes sense to discuss the entire process with a realtor you trust.