Millions of people are asking themselves this question about their homes and possessions thanks to Marie Kondo and her wildly popular de-cluttering philosophy.

Once the kids are moved out, it’s just you, your spouse, and whatever is still boxed up in extra bedrooms and the loft. Whether you’re looking for joy or just a little less space and stuff to manage, you might be thinking about decluttering and “downsizing” into a smaller home before you retire.

But sometimes less can be more: more hassle, more complicated, and more expensive. Before you and your spouse order that skip and make a down payment on that luxury flat on the coast, consider these important pros and cons of downsizing.

PRO: Make a change while you can still enjoy it.

The younger you are during a downsize, the less help you’re going to need clearing out what you don’t want and relocating. And a clean, organized home can be a great “blank slate” as you start easing into your new life. You might even organize a move around interests you want to pursue in retirement, like a community with golf and tennis facilities, or a burgeoning foodie hotspot with an exploding restaurant scene.

CON: You might make a change you don’t both enjoy.

Couples need to be very clear with each other about their expectations for what life is going to be like in retirement, and how each of you want to spend your time separately and together. A downsizing that moves you to a new town, away from friends, family, and familiar comforts, can go from exciting to exasperating very quickly if both spouses aren’t committed to adventuring together. One spouse might be happily teeing off while the other is puttering around the house bored silly.

And while a smaller house without kids and clutter might mean more room for you and your spouse, it’s still going to be closer quarters than you’re used to. Is less space going to provide you both with enough personal space?

PRO: Simplified living.

A smaller home means less upkeep. If you buy, you’ll probably pay less in taxes than you did at your larger house. With less space to heat and cool, and no kids soaking up extra water, food, and electricity, your monthly bills might go down. If your smaller house is relatively new, it might require less upkeep and age well right along with you.

CON: Simple isn’t free.

There’s a pretty good chance your current furniture isn’t going to fit or fit in at your new house. Our old stuff is never as valuable to resellers as we want it to be, so you’ll probably end up dipping into your nest egg to buy new furnishings. Anything you don’t want to get rid of you’re going to have to store, either in that beautiful, empty basement, or at a storage facility you’ll have to pay for. If you move to a different state, your smaller home might come with higher taxes. What you save on taxes buying a condo might be offset by association and communal maintenance fees.

PRO: Living the best life possible with your money.

The best reason to consider downsizing doesn’t really have anything to do with decluttering. It’s not about managing space or what to do with all your possessions.

No, the reason to downsize is because that smaller home you’re thinking about will allow you to live the life you want to live in retirement. It’s because that home is going to give you the space to do the things you want to do with the people you love, while minimizing the things you don’t want to do anymore.

Does that idea spark joy?

Then let’s talk. Come in and tell us why you’re thinking about downsizing. We’ll run some numbers and discuss how a new, smaller home could open a big new world of possibilities for you.

A hamster in a wheel.

Have you ever watched a hamster running in a wheel? All that running, all that effort, day after day after day … But the poor little critter never really gets anywhere, does he?

Many of us feel the same way about our money.

More specifically, we feel that way about the work we do to get that money. We spend forty hours every week on a wheel, running after a paycheck. And then, first thing Monday morning, we’re back on the wheel, and the whole thing starts over again.

Many folks just keep repeating this cycle, over and over, until they finally retire. They think that stepping off the wheel just isn’t an option because they have bills to pay, college expenses to save for, and a dream to be “financially set” before retiring from work.

How much is enough?

These are all persuasive arguments that keep people on the wheel. And the hope is that someday, you’ll be able to stop running and enjoy the fruits of all that hard work.

Unfortunately, more often than not, “someday” never comes. If your focus in your work and in your financial planning is just having enough money, you’ll never feel like you have enough. There’s always another pound to chase, another way to economise so that you can save more.

But for what? Is having more and more money, in and of itself, something that you really value? Does having more make running on the wheel worth it?

You might think that this “never enough” mentality ends once a person retires. In fact, it just transitions into a new, related worry: “Am I going to run out of money?” Again, that “someday” gets pushed back in favour of more saving, more cost cutting living. You might not be working any more, but you’re still chasing after money.

The wind in your sails.

At the end of the day, your money is not the shore we’re sailing for. It’s not the sea you’re sailing on. It’s not even the boat you’re steering. Your money is the sail. It’s the tool you use to get where you want to go. And the wind in that sail is your values.

Just like a good sailor learns how to maneuver the sails to catch the most wind, aligning what’s most important to you with your financial resources is the key to successful financial planning. So instead of asking yourself if you have enough money, or if you will run out of money, ask yourself a better question:

Am I managing my money in a way that’s improving my life?

We don’t want you just to “have enough money.” We want you to live the best life possible with the money you have.That starts with thinking about what’s really important to you. The people whom you love. The causes that are dear to your heart. The activities that keep you feeling fit and full of energy. The hobbies that put your unique skills to their highest uses. The opportunities for learning and self-discovery that enrich your understanding of the world and of yourself. The wisdom that you will pass down to your children and grandchildren so that they live their best possible lives as well.We believe that aligning your financial plan with these values is every bit as important as analysing your tax situation or managing your investments. Come in and see how our interactive tools can you help plan for your whole life and get more from your money than just more money.