THE CANADIAN PRESS
March 28, 2023
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Read an excerpt below.
Before making a move such as downsizing or opting for cohabitation with a loved one or roommate, it’s crucial to reflect and weigh your options and priorities, said Cindy Marques, a certified financial planner and co-founder of MakeCents.
If you prefer to be a city dweller because it makes you happy and feeds your soul, Marques said you’ll have to accept that housing prices are going to “eat up” a larger percentage of your income and you’ll have to cut back in other areas like dining out or shopping in order to save.
But if the cost of living in a big city like Toronto, for example, is too high to bear, then you’ll have to consider moving in with your parents or with a roommate, or moving out of the city altogether to downsize your expenses, said Marques.
“You really do have to consider all the options here,” she said.
Marques strongly encourages those who are choosing to make such moves to be mindful of why they’re doing so in the first place and to keep their sights set on their financial goals.
“If you’re downsizing in terms of rent, is it because you’re saving up for a down payment? Or maybe you’re already an owner and you’re downsizing to a cheaper property because you want to expedite your progress to retirement. OK, write that down, crunch the numbers,” she said.
Otherwise, once you’ve made the change, the extra wiggle room in your wallet might result in your original goals being “lost to lifestyle creep,” said Marques.
“Figure out what is it you’re saving and what are you saving towards.“