Picture the scene: finally, after 20-plus years, the kids are well and truly off your hands and no longer asking for money. Hopefully you are about to retire – or else you are on the home stretch and counting down the last couple of years before retirement.

As we get closer towards retirement, for most of us an internal shift begins. We get rid of things we barely use and contemplate whether the house we raised our families in and have so many memories of is simply too big for the next chapter in our lives.

I remember when, perhaps two or three years before my mum and dad put the house up for sale, mum began to “declutter”. I remember getting several calls about the “stuff” I still had stored at the house, my mother asking me when I was planning to collect it and reminding me their house was not a storage facility. Looking back now, it was the first phase of their downsizing … the decluttering phase.

Think about how much “stuff” you collect over the course of a lifetime; you probably only appreciate the sheer volume of it when you decide to move or decide to declutter. I can certainly attest to this: I seem to have amassed such a large collection of platters and cheese boards that I could probably open a store.

In reality, the thought of decluttering can be so daunting and overwhelming, because most people can’t figure out exactly where to start.

A 2024 article in Forbes magazine suggests there are nine areas to tackle first and if done correctly, it will be a liberating experience.

So what areas should you initially focus on when “decluttering”?

1, Pantry items and fridge/freezer: toss out anything expired or nearly done (especially oils).

2, Medicines: toss out anything that’s expired (liquids, gels, pills, etc).

3, Kids’ clothing: there’s no sense in keeping clothing that’s too small if you’re not saving for another child.

4, Old magazines/newspapers: are you seriously going to re-read that Saturday edition of the newspaper from 2003?

5, Sheets and towels: evaluate your sheets and towels: if they have holes or lots of stains, replace them. You can donate older towels items to the SPCA or your local veterinary clinic.

6, Junk drawer: toss out old junk rubber bands, leaky batteries and anything that is rusty and more likely to give you tetanus than be of use.

7, Clothes: if you don’t have time to sort all of your clothes, at least do the underwear, socks and pyjama drawers. If they are old and falling apart – it’s time to toss them! Also, if you are hanging onto that pair of jeans or dress in the hopes it will one day once again fit (sadly I have been doing this) then, if it hasn’t fit for the past two years … it’s time to say good bye – off to The Barn you go.

8, Cords/cables: I don’t know about you, but in our house we typically have so many extra cords and cables left over from old appliances and tech. You don’t need them – so get rid of them!

9, Obsolete tech: get rid of old phones, computers, etc … remember: you replaced them for a reason. There’s no need to keep them!

Once you have got the decluttering phase out of the way, chances are you are in the process of seriously contemplating downsizing. Later in life people often find that the large family homestead costs too much in maintenance and too much time to take care of everything.

Although the memories of raising a family in the home may be strong, the homestead is no longer suitable for your future lifestyle.

Once you enter the downsizing mindset, what does downsizing involve? It can mean different things to different people; however, downsizing typically falls into three categories:

1, Selling your existing house and buying something more suitable for your retirement plans.

2, Reducing the amount of belongings you have accumulated.

3, A combination of both of the above.

Downsizing your belongings can be a scary thought – but if you think about what you really use in your home on a daily or weekly basis, it is a fraction of what is actually in your home.

Downsizing your possessions is little bigger than decluttering. It can often mean selling furniture that is no longer used, clearing out the garage and selling items that might yield a return.

Chances are that if you are downsizing your possessions, then you are gearing up to downsize the homestead. Perhaps your plan is to start travelling and so owning a condo is far more suitable as you can lock the door and go away for months without the need to keep up with property maintenance.

Perhaps your house is two-storey, and your downsizing actually involves restructuring or renovating your house to better fit your lifestyle, perhaps creating a smaller home or an apartment that you could rent.

On the other hand, downsizing a homestead can be a financial strategic initiative: you buy the larger home to raise the family, then sell when the kids leave, buy something smaller and less expensive, and use the remaining proceeds from the sale to finance a portion of your retirement.

If you are getting close to the decluttering or downsizing phase, it is essential to make sure you have a clear vision of what you want and what you need to do to achieve it. Remember, you can’t turn back once you have sold the family homestead or downsized your possessions.

References

Hunter, S. & Pelcher, L. (2024) Tips For Downsizing And Decluttering Before A Move. Available from: https://www.forbes.com/home-improvement/moving-services/downsizing-before-a-move/ [Accessed 23 September 2024].

• Carla Seely has 24 years of experience in the financial services, wealth management and insurance industries. Over the course of her career, she has obtained several investment licences through the Canadian Securities Institute. She holds ACSI certification through the Chartered Institute for Securities and Investments, UK; QAFP through FP Canada; and AINS through the Institutes. She also has a master’s degree in business and management