Retired couple moving and unpacking boxes

Downsizing can do more than just clear out your closets—it can change how you live day-to-day. Reducing your stuff and moving into a smaller space saves cash, reduces stress, and creates a simpler, more purposeful life. Here are 13 downsizing tips that will help you reduce the overwhelm save money, and live lighter.

Start Small and Stay Consistent

Woman sitting on the ground decluttering her room
Image Credit: Ground Picture via Shutterstock.

Downsizing feels overwhelming when you plan to tackle everything at once. Instead, begin with a single area—a drawer, a closet, or even one shelf. Work through it completely before moving to the next. Consistency matters more than speed here. Even dedicating 15 minutes daily can make a long-term difference. Once you see results in small spaces, the motivation to continue builds naturally.

💸 Take Back Control of Your Finances in 2025 💸
Get Instant Access to our free mini course
5 DAYS TO A BETTER BUDGET

Identify Your Motivation

Young woman with long hair thinking deep in thought
Image Credit: Khosro via Shutterstock.

Why are you downsizing? Do you want to save money on housing or feel less stressed by clutter? Knowing your “why” keeps you focused. Write it down or share it with a friend for accountability. Downsizing isn’t just about the stuff you get rid of; it’s about creating a lifestyle that serves your goals.

Create a “Four-Box” Rule

Retired couple moving and unpacking boxes
Image Credit: Feverpitch via Deposit Photos.

When deciding what to keep, use four boxes labeled: Keep, Sell, Donate, and Toss. Every item must go in one of these, with no “maybe” pile allowed. This method forces faster decisions and gives you clear next steps for each box. It’s also a great system for working with kids or partners who need structure for letting go.

Declutter by Category, Not Room

Young woman decluttering clothing sitting on bed
Image Credit: Serezniy via Deposit Photos.

Instead of clearing one room at a time, focus on categories like clothes, books, or kitchen tools. This approach helps you see everything you own in a specific area, making unnecessary duplicates stand out. Can’t decide on an item? If you’ve got multiples, let the “best one” be your guide.

Sell Bigger Items First

Image Credit: SIphotography via Deposit Photos.

If you’re looking to make money while downsizing, start with high-ticket items like furniture or electronics. Post them on Facebook Marketplace, Craigslist, or OfferUp—platforms that thrive on selling locally. Include clear photos and honest descriptions to attract buyers quickly. The cash you create from selling larger pieces can be used for moving or purchasing quality replacements.

Digitize Paperwork and Sentimental Items

Mature woman working at her laptop holding a cup of coffee
Image Credit: SimpleFoto via Deposit Photos.

Paper piles up faster than you realize. Scan important documents and switch to digital billing for utilities or subscriptions. The same goes for sentimental items like old photos, trophies, or kids’ artwork. Snap digital images before letting go of originals you aren’t actively displaying. You’ll save both space and memories this way.

Downsize Your Wardrobe

Closet containing a capsule wardrobe
Image Credit: Ivchenko Evgeniya via Shutterstock.

Closets are clutter hotspots. Create a capsule wardrobe by keeping versatile basics you truly love to wear. Get rid of items that are uncomfortable, outdated, or no longer fit. A seasonal approach—rotating clothes twice a year—also ensures you avoid hanging onto things “just in case.”

Donate Locally for Quick Impact

Female volunteer talking on the phone in a donation center
Image Credit: Krakenimages.com via Deposit Photos.

For items that aren’t worth selling, find local charities, shelters, or schools that can benefit. Many organizations will even pick donations up directly from your home, saving time and effort. Plus, donating is a feel-good way to help others while clearing your space.

Get Creative with Storage Solutions

Plastic storage bins stacked on a shelf
Image Credit: Kip02kas via Deposit Photos.

Downsizing doesn’t require sacrificing organization. Choose multi-functional furniture like beds with under-storage or coffee tables with built-in compartments. Use vertical space—think shelving, wall hooks, and pegboards—to maximize every inch of your smaller area. It’s about function, not how many things you can cram in.

Limit New Purchases

Young woman with shopping bags and cash with a yellow background
Image Credit: New Africa via Shutterstock.

Resist the urge to fill your new space with fresh “stuff.” When you downsize, the goal is fewer, better things. Adopt a one-in, one-out rule: for every new item you bring home, you must let go of something similar. This habit will keep post-downsizing clutter under control.

Plan Your Kitchen Use Wisely

Light, bright, organized kitchen
Image Credit: Metamorworks via Shutterstock.

Our kitchens are full of gadgets and tools we rarely use. Be truthful…do you really need five spatulas or that yogurt maker you’ve touched twice? Stick with basic cookware and tools that truly support your cooking style. Simplify meal prep with staples like one good chef’s knife or a slow cooker that handles multiple dishes.

Make Downsizing a Group Effort

Couple sitting on floor of new apartment
Image Credit: Haveseen via Deposit Photos.

If you find it hard to focus, enlist a friend or family member for help. Sometimes an outside perspective makes it easier to decide what’s essential. Plus, donating or selling items with someone else present makes less space feel like progress rather than loss.

Create a Long-Term Routine

Person reviewing their planner
Image Credit: Andrey_Popov via Shutterstock.

Downsizing isn’t just a one-time effort. Build regular habits to maintain the simplicity you’ve created. Schedule a seasonal cleanout twice a year or commit to spending 20 minutes monthly reviewing items you’ve collected. By keeping downsizing ongoing, you’ll avoid falling back into old patterns.

Simplify, Save, Repeat

Woman sitting on the floor surrounded by boxes on moving day
Image Credit: Inesbazdar via Deposit Photos.

Downsizing is less about sacrifice and more about creating the life you want. It saves money, cuts out hidden stress, and stops clutter from taking over your surroundings. If you start small and stick to these tips, you’ll find that living with less feels like more—more freedom, more clarity, and a whole lot of financial peace.

Less is More: 10 Tips to Embrace Minimalism Like a Pro

Sophisticated blonde woman smiling and drinking coffee
Image Credit: PetroSeniv via Deposit Photos.

Minimalism offers a refreshing shift towards simplicity and clarity and is an escape from the everyday hustle. It’s about focusing on what truly matters and shedding the excess that weighs you down. By embracing minimalism, you make room for more meaningful experiences and a more peaceful lifestyle. Why complicate life when you can simplify it and find joy in the essentials? Here are 10 ways to live on less and embrace minimalism. Less Is More: 10 Tips to Embrace Minimalism Like a Pro

9 Simple Mind Tricks to Actually Enjoy Spending Less

Closeup of young redhead woman
Image Credit: Shakhalova_Viktoriya via Deposit Photos.

Learning to spend less doesn’t have to feel like deprivation. It’s possible to make it an exciting challenge rather than a struggle. These practical mind tricks turn saving money into a lifestyle shift you’ll not just accept but actually enjoy. 9 Simple Mind Tricks to Actually Enjoy Spending Less