Final Answer:
Mr. and Mrs. Faurah should consider downsizing to a smaller, more affordable living space, such as a one-bedroom apartment or a townhouse, to reduce their living expenses and improve their financial sustainability.
Step-by-step explanation:
As an immigrant couple in their early 70s, Mr. and Mrs. Faurah are facing a common challenge of living with their oldest daughter and her husband of 15 years, along with their three children. While living with family can be a great source of support and comfort, it can also be a significant financial burden, especially as the couple ages and their living expenses increase.
To address this issue, Mr. and Mrs. Faurah should consider downsizing to a smaller, more affordable living space. This could be a one-bedroom apartment or a townhouse that is closer to their daughter’s family and other amenities, but has lower property taxes and maintenance costs. By downsizing, the couple can reduce their living expenses and improve their financial sustainability, which can help them maintain their quality of life and achieve their long-term financial goals.
To calculate the potential cost savings of downsizing, Mr. and Mrs. Faurah can consider the following factors:
Property taxes: Based on the average property tax rates in their current location and the estimated value of a one-bedroom apartment or townhouse, the couple can calculate the potential property tax savings.
Utility costs: By comparing the average utility costs for a one-bedroom apartment or townhouse with their current living expenses, the couple can estimate the potential cost savings.
Maintenance costs: As older adults, Mr. and Mrs. Faurah may require more maintenance and upkeep for their current home, which can add to their living expenses. By downsizing to a smaller living space, they can reduce these costs and allocate the savings towards other expenses.
Overall, downsizing to a smaller living space can be a smart financial decision for Mr. and Mrs. Faurah, as it can help them reduce their living expenses, improve their financial sustainability, and maintain their quality of life.