Most people never find their life’s true purpose, and as a result, they spend the majority of their lives working at a job they don’t enjoy. The thought of retirement is very exciting for some people, but at the same time, it is equally as frightening because you no longer have the same income coming in every month.
The good news is that there are ways you can make up for that lost income by cutting back on your expenses at the same time as making additional money. Here are some tips on how you can do this.
Plan to Save
Maybe you are retiring in the next five years, but now is the time to start getting things in order so that you are not caught off guard when you realize that retirement is around the corner and you haven’t saved enough money. You can avoid this by planning ahead, start saving early, or even invest, and work out how you are going to manage your finances once you are no longer working.
Sell a Vehicle
Most couples have two cars in their driveway. When you were both working this was necessary because you probably drove to two separate locations to go to work. However, now that you are retired, you don’t need the extra car as you won’t be going out as much. Selling the most expensive car is not only going to give you some extra cash, but you will also save money on the insurance, car note, gas, and any other expenses associated with the vehicle.
If you don’t mind catching the bus, you can sell your vehicles and save even more money, but you should only use public transport if you are healthy enough to do so and you live in an area where there are good public transport links.
In places like New York, you will find discounts for people over the age of 65. If you are traveling long distances on a service such as Amtrak, you can expect a discount of 10% for seniors.
Cut Down on Clothing
Since you no longer need to wear expensive suits to work, why not sell what you have. There are plenty of people who buy second-hand goods, and if you have kept your clothes in good condition, you can get some decent money for them. It is advised that you sell them yourself instead of through a third party to maximize your earning potential.
You can sell your clothes on websites such as www.ebay.com and www.etsy.com. Additionally, getting rid of your business attire means you no longer need to spend money on dry-cleaning services.
Change Your Life Insurance Policy
Now that you are of retirement age, you no longer have dependents; in most cases, your children are grown, have left home, and probably have children of their own. The more expensive life insurance policies are to ensure that dependents are left financially secure if a parent or parents die. Therefore, once you are retired, you will no longer need life insurance apart from to cover funeral costs, but you will only need a small policy for this.
Discounts on Club Memberships
Club membership discounts are good if you are going to use them. There are discounts available on things like bulk groceries, dining, vacations, and car rentals. Several organizations offer this kind of service — Costco and AARP are the most popular.
Look After Your Health and Find Good Medical Coverage
According to the World Health Organization, over 50% of deaths globally are preventable. Many people die from diseases related to a bad diet and bad lifestyle habits like smoking and excessive drug use.
Throughout their lifetime, a lot of retirees spend more on out-of-pocket healthcare expenses than their Social Security Earnings. You can eliminate these costs by maintaining a healthy diet and exercising as well as carefully choosing your Supplemental Medicare Coverage. Each year, be sure to shop around for the best plan because not only do healthcare plans change, so do your healthcare needs.
Eliminate Bad Habits
Smoking, drinking, fast food, and candy are not only a drain on your finances, but they are also bad for your health. The Centers For Disease Control and Prevention estimate that smoking costs around $2,992 per year to smoke. If you smoke a pack a day and manage to live for ten years after retirement; that’s an alarming $22,920 you could have counted towards your savings — but instead, spent on cigarettes.
Do It Yourself
Now that you are retired, you’ve got extra time on your hands to do the things you wouldn’t normally be able to do. Instead of hiring a handyman to fix things around the house, why not do them yourself? In this technology-driven era, everything you will ever need is online.
YouTube is a great place to watch how-to videos for your DIY ventures, there are plenty of experts who have uploaded videos on the site giving you step-by-step instructions on how to get things done around the house.
Off-Season Travel
Most retirees love to travel — it’s the thing to do when you’ve got excess time on your hands. You can save plenty of money not only by traveling during the off-season but by taking multiple trips at the same time.
Pay Down Debt
Although you are no longer getting paid as much as you were when you were a full-time employee, there are several things you no longer need to pay for like travel to work and buying corporate wear. You can use that money to pay down any debts you have. The most effective way to do this is to take advantage of a debt consolidation plan. You may want to consider refinancing your mortgage or using savings to pay off debt faster and lower any monthly payments you have.
Eliminate Routine Expenses
Daily papers, coffee, lunch, lottery tickets, water bottles, etc. are all unnecessary expenses. Even though you are only spending a couple of dollars per day on these things, the price adds up over a year. Let’s say you spend an average of $10 per day on coffee, water, and a paper — that is $70 per week, $280 per month, and $3360 per year!
In this day and age, there is no need to buy a newspaper because everything is online, you can make your coffee, and if you enjoy carrying a water bottle, buy a durable one and keep refilling it.
Use the Library
Instead of spending money on Netflix and Kindle books, use the library. It is a tremendous source of free information where you can watch your favorite movies and borrow books free of charge.
Final Thoughts
Retirement is an exciting time — you are now free to explore the world during the times that are most convenient for you. However, you must protect your finances because what you don’t want is to run out of money and be forced to go back to work.
The best way to ensure this doesn’t happen is to make additional money at the same time as cutting down on your expenses. If you follow some of the steps mentioned in this article, you will have more than enough to comfortably carry you through your retirement years.
