Downsize Before Retirement

“A lot of people live in a myth that they should buy as much house as they can afford,” Tresidder says.  Unfortunately, a big house involves higher costs such as mortgage payment and high insurance, utility and maintenance costs. “All these things take away from your savings capability,” he added.

If your place is too big for your needs, you don’t have to wait until retirement to move to a smaller house. Start reducing your costs as soon as possible and transfer the difference to your savings account.

See also 18 Things Seniors Should Consider Before Downsizing.