Reasons for Downsizing
Downsizing can refer to many different things, including laying-off staff in an organization, buying a smaller home or just selling your property to de-clutter.
Here are the reasons for downsizing in four main situations:
To rid of clutter
Many people suffer from hoarding, buying excessive goods they don’t need and using their home as a dumping ground. The benefits of creating space and cutting back are extensive and can change lives.
Stockpiling a mass of unused items and cluttering the house causes psychological harm. As the piles grow, so does the frustration, not only of the individual, the whole family as well. The unsightly result causes the perpetrator to be constantly reminded of their condition. They are too aware of the reasons for downsizing and yet stopping is difficult.
Once you take the first step and dispose of the excessive belongings, the results are life changing:
- The house will look and feel like a home, rather than a storage facility
- You will know where each item is stored
- No more buying the same thing twice
- Feeling good about yourself
- No more pressure of those unfinished projects
- You can actually use the spare room or the garage
- Getting rid of things you don’t need is rewarding
- Giving those items to a charity is self satisfying
To prepare for retirement
There comes a time in your life when you will need to consider scaling down to retire. The reasons for downsizing include:
- Reducing the household expenses including the mortgage, property taxes and maintenance
- To ease the burden of household and gardening chores
- A simpler lifestyle
- Residual moneys can generate retirement income from investment
- Circumstantial (for example a change in health or finance)
- To free up funds for holidays
To escape the busy lifestyle
To a greater extent people are choosing to escape the hectic and overburdened materialistic lifestyle. Today, young persons are pressured to have it all; a nice house, car, clothing, holidays and so on. Many take out an excessive mortgage to pay for these luxuries. It’s not long before the financial and emotional pressure puts strain on relationships and quality of life.
There are people who have taken the plunge and reduced their lavish desires, giving way to a healthier and happier lifestyle. However, for many, this radical change remains too overwhelming.
To save costs for a company
Businesses also downsize in order to produce larger profits or to avoid a crisis. The reasons for downsizing staff include:
- Closure of a department within the organization
- To increase profits for investors and shareholders by reducing expenses and increasing efficiency
- Redundancy, where machinery or technology has taken over
- To avoid liquidation or bankruptcy in a financial crisis, putting extra burdens and pressure on remaining staff.