The secrets to downsizing is to think usefulness. There are no other secrets except asking, will this add to my lifestyle and make my life more comfortable? In other words, keep around you only that which is necessary to you and your family's well being. A young family with children in school will need only what is necessary for them. Their needs will be different from those of the grandparents. Each situation, sadly enough, is often hampered by too much clutter from a previous situation.
Children going away to school and never returning home to live finds the old home place a handy means of storing childhood memories and paraphernalia. All too soon aging parents find themselves as keepers of their children past outgrown clothes and toys. This in time becomes a burden. Or maybe not. It all depends on their comfort zone.
Downsizing to be effective must be personal. Some thing close to a plan is each person keeping those items that are useful to them. An artist, as an example, will want to keep handy their tools and their artwork, while not allowing for much else; a writer and a book lover will have in excess the number of books others consider necessary. These are items useful to the person and all else is usually fitted in around these. This is good.
After all that is settled, a list may be needed in considering what else is to be kept. A good idea is to start outside first since that is the place for good or bad first impressions. Keep only what is necessary and useful. Yes, if a mechanic needs those old cars outside, they must stay. Yet a better idea would be to remove the useful parts, store them in some out building and sell the others for scrap junk. Or have them hauled off for free for sale by metal recyclers. The same goes for lawnmowers and yard tools.
Inside, tackle the broken furniture in the attic. Either reupholster it and use it, repair it or just place it in the dumpster. If it is of good quality, maybe selling to an antique dealer is the first best choice. After furniture, go through all else in the attic. Get rid of the trash so the items needed will have a place to call their own. This will free up space below so all will become more comfortable.
Yet, if space is valuable to you, think twice before rushing out and buying items to quickly refurbish empty spaces. A better choice may be to reduce all your possessions down to the barest minimum and when you get to the comfortable level, leave it at that. Nothing is more soothing than a spacious room with only a few carefully chosen items of furniture well placed. Leave room for an occasional must-have find that you will later inherit or will find at a reasonable price.
Now on with the plan: Once you have your yard and your attic and your large items taken care of, go after your closets and make room there. Arrange your life so that you know immediately what is where when you need to know where it is. If by chance, and this always happens, you will need some item you have tossed or given away, don't start dragging a lot of useless item back into your house saving for that once in a while use.
Rent that tool or borrow from you neighbor who always has a well stocked garage. You know the one. He is the one recently admiring the fact you have room in your garage for your car.
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