As a cost-cutting measure, downsizing makes perfect sense. A smaller home typically means a smaller mortgage. It also means lower utility bills and reduced maintenance costs. The money you save can grow exponentially if you invest it well. Downsizing could even help pay for your retirement or your kid's college education.
Certainly finances are one of the biggest downsizing drives, but there are others. Lots of empty-nesters find their house is kind of cavernous once the three kids have moved out. Retirees may find that vacuuming 3,000 square feet (278 square meters) of carpet is a waste of time and energy. Some people size down to go green. Heating a few hundred square feet is a lot more Earth-friendly than heating a few thousand.
If any of these people is you, you may be in a good position to downsize. But before you make your mind up, take an honest look at yourself, your family and your life: What do you want? What do you need?