You’ve worked hard. For years you’ve pounded the pavement on the way to the office, always showing up on time and often staying late. A significant portion of your paychecks was funneled into savings accounts.
Now, your hard work has paid off. You’re retired. However, unless you’re wealthy you can’t allow yourself to start blasting through money. Your nest egg needs to nourish you for the next few decades. You might find that you become even more diligent about saving money after retirement than you were before.
Sometimes, retirees find that their lifestyle is more expensive to maintain than they thought it would be. At other times, the uncertainty of the world plays a role in their finances. Countless people have predicted larger returns on their investments than are actually produced.
Seniors whose cash flow is running dry often start looking at their homes as a source of income. Those who own their home outright, or close to it, can apply for a reverse mortgage. You don’t have to worry about interest rates because you won’t be responsible for repaying the loan until you no longer reside in your home. That could represent the rest of your life.
However, a reverse mortgage isn’t an option for a lot of seniors. An easier to way to stretch your dollars during retirement is to start spending less. There are a lot of ways to reduce your spending, with some being more difficult than others.
Here are some money-saving strategies you can employ.
Downsize Your House
Maybe a reverse mortgage isn’t the right choice for you, but you can still make money from your home. A smaller house is much cheaper to maintain. Your mortgage costs will be reduced and typically your maintenance bills will be lower as well.
Now that you’re retired, you probably don’t need as much space. You don’t have kids running around underfoot anymore and you’re not hosting company dinner parties. If you move into a condo or apartment, you’ll never have to take care of the yard again.
Set Your Priorities
Think about how you want your life to look. Maybe you wouldn’t mind cutting out cable now that your children are out of the house but you would hate to skip your weekly outing to a new restaurant. Funnel your resources toward things that matter to you.
Figure out Your Hobbies
If you want to spend your days on the golf course or collecting fine art, you need a meaty nest egg. However, your hobbies don’t have to be expensive. You can fly to Napa Valley for the weekend or you can buy a few bottles of wine and organize a tasting party at your house.
Foodies don’t have to sacrifice their love of exotic flavors when they’re saving money. Instead of ordering bison at the restaurant, try cooking it at home. If you really crave the restaurant experience, order the bison but have simple meals for the rest of the week.
Use Travel Hacks
Now that you don’t have to go to work, you’re free to travel. Even better, you’re free to travel on unpopular or offseason days. You can save a lot of money if you avoid traveling during the peak season. If you can’t find enough deals to make your trips affordable, look into house sitting. Someone lets you stay in their house for free in exchange for looking after it while they’re traveling.
Remember Senior Discounts
Hey, you’ve earned it. A lot of retail stores offer senior discounts. The amount that you save might seem small at first but it’ll add up over the rest of your lifetime. Make sure you ask about a discount before purchasing anything.
Sell Your Car
Do you really need your car? Many cities have robust public transportation options. Ride-hailing apps like Uber and Lyft are both inexpensive and widely available. You can save money on gas, insurance, maintenance, and car payments if you adopt a car-less lifestyle.
Your retirement can be the best part of your life. However, you may need to make a few small sacrifices. Your retirement funds potentially have to last for the next 20-50 years. The worst thing that could happen to you would be running out of money when you’re no longer capable of working.
You can protect your finances by being smart. Disaster could still strike but your chances of survival are higher if you’re prepared. Take advantage of opportunities to save money when they crop up. Saving a dollar here and a dollar there is more helpful than many people realize.
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