Downshifting is a means of cutting back on expenses and improving one’s quality of life by reducing one’s standard of living. It is a trade-off between money and possessions on the one hand and one’s well-being. Downshifters believe they can have a better quality of life by working fewer hours and spending more time engaged in leisure activities. As a result, they often move to smaller homes or less expensive neighborhoods and try to reduce their consumption of goods.
When considering a downshifting decision, consider your personal goals and motivations. If a lifestyle change is warranted, make sure you are clear about your purpose and goals.
You should calculate your living expenses before reducing your workload. To do this, track and analyze your finances and consumption habits—such as food, utilities, and transportation costs. Then think about how you will support yourself when you work fewer hours. The goal is to learn how to live on less income when you work fewer hours.
There are three following types of downshifting:
Career downshifting is the act when you change a career for more money but get stressful responsibilities. The goal is to “work to live” instead of “live to work”.
Downshifting consumption involves the reduction of materialistic purchasing habits, including the purchase of luxury goods and services. It also includes changing consumption habits to prioritize quality rather than quantity (for example, buying organic food or visiting the local farmer’s market).
Lifestyle downshifting is a deliberate change in one’s lifestyle, who spends time with friends and family also values their hobbies, and passions and does a lot of activities for stress reduction.