3. Live Below Your Means
There’s no rule that says you have to wait until retirement to downsize. If you’re 55 years of age and thinking about retiring in the next 10 to 15 years, downsizing now creates an opportunity to improve cash flow and either pay off debt or build your nest egg.
Profits from a home sale might be enough to pay cash for a smaller, cheaper home, or at least enough for a hefty down payment, resulting in an inexpensive mortgage payment.
Now might also be a perfect time to downsize, especially if your last child has left the nest and you have more space than you need. Besides, downsizing and living below your means doesn’t only decrease your home payment, it also results in cheaper utilities, lower property taxes and lower maintenance costs.