Downsizing is not just about swapping a house for a smaller one.
One can downsize their cable package, cell phone package, all kinds of stuff, like cancel magazine subscriptions, cut out one weekend of golf per month, eating out, other discretionary spending...
I did this without changing houses, and I found about $600 per month savings.
Here is how I did a severe downsizing: I eventually rented out my 4 bedroom home to a nice family, and that offset the monthly mortgage. I'm mobile now; consulting anyplace the job takes me, free lancing IT work. My out of pocket is less then 10% of the income I generate. I am currently in the Pacific North West, and once this gig ends in March 2010, who knows where I'll land?
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