How to Downsize Quickly

You don't think it will ever happen to you, losing your job, or your house to foreclosure, or having so little money to live on that you have to choose between rent and food. In the current economy, and the way it appears to be heading in the future, you just don't have that kind of guarantee anymore. If the worse happens, and you are stuck with being jobless, or "house rich and cash poor" as the saying goes; you're going to have to learn some new ways of living. To downsize, and fast, read on.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Gumption.
• Access to a phone, the internet, and the public library.
• Perseverance.

1. Forget pride. If you think your only value is because you live in a fancy house, drive an expensive car, and wear designer clothes, this experience is going to challenge you on many levels. You are not your job, and your possessions don't define you. Period.
   Stop watching television and reading the news for awhile, if that helps, because most of the advertising is trying to convince you that unless you buy product A or wear product B, you are a loser.
   Who needs to be surrounded by that idiotic thinking? Not you. You need to stay positive and believe in your value and your worth as more than just a consumer of goods.
2. If you've lost your job the first step is to see if you qualify for unemployment benefits. You will need these benefits to live on, so apply as soon as you can.
   If you don't qualify, for whatever reason, then at least go apply for food stamps. You might have to wait a couple of weeks for them to process your claim, but food is expensive and you need all the help you can get.
3. If you have any money in savings, immediately decide how to make it last as long as possible.
   If you are lucky you have enough money in savings to live on for a few months.
   However, most people have virtually no savings, or none at all, so you are going to have to get real serious about survival, real fast.
4. If you are one of those people who bought a house that was bigger, and more expensive, than you can afford or need, then sell it if you can.
   If for some reason you can't sell your home, then seriously consider renting it out to someone who can still afford it while you move to a smaller place you can afford now.
   Or, perhaps you can stay in your house by renting out rooms. If you have a house with a "mother-in-law" apartment, as part of your property, you're even luckier. Rent it out, as quick as you can.
   If you do have to move, consider the area you live in too. Find the area where rents are cheaper, but still workable for you as a home base.
5. Cars are a luxury. Yes a luxury, that's what I said. And there are many who are giving up their car completely, or at the very least giving up all but one car, and then using that one car in a much smarter, and thrifty way.
   If you get rid of your cars completely, you will have to depend on buses, friends with cars, bicycles, and walking to get you where you need to go. This is easier if you live near the places you go to often, such as grocery stores and schools, etc.
6. Stop buying, go on a buying fast. To the best of your ability just don't buy anything new for awhile. You more than likely have enough clothing, household furnishings, books, and music, and nearly everything else, already.
   Shop for what you need, and nothing else.
   Identify the difference between a need and a want, and only buy what you need.
   For instance proper work shoes, if you don't have them, might be a need, but another pair of sandals when you have five other pairs of sandals in your closet already, are a want.
7. Food and shelter are two very big expenses in most peoples budget, so if you've got your shelter budget down, you need to look at your food costs, and cut them way down too.
   Eat real food and make it yourself. Drink more water, eat more vegetables and fruits, cut way down on meat consumption, and don't buy prepared meals or mixes if you can make them yourself for cheaper.
   Don't eat out at all. Bring your lunch with you, if you are going to be gone all day, and some bottled water.
8. Eliminate budget busters, like cable, fancy coffee drinks, dvd's and magazines, going to the movies every week, and shopping as an entertainment.
9. Sell your "stuff". Anything you don't use or need or want is something you can sell, perhaps at your own garage sale, or on craigslist.
10. Find free or really inexpensive entertainment in your city, through your local library, or your towns chamber of commerce, or research "free event" online for your area.
    Take walks, go for bicycle rides, and other no-cost exercise options and fun activities.
11. Research thrifty living, on the internet, or from books in your local library. You're sure to learn a ton of stuff that will really help you.
12. If you have young kids, buy their clothes and toys at yard sales or in thrift stores, instead of high-priced department stores.

Tips & Warnings

• Keep your head up. Be proud of what you can do if you put your mind to it.
• Learn all you can about frugal living.
• You will probably get depressed or grumpy sometimes when you think about the things you don't have anymore. Expect this, do your best to deal with it, and move on.