You saved up your whole life so that you can retire in style, but sometimes even after all the savings, you may not be able to afford to retire the way you have always dreamed of. Retiring is expensive, and often unexpected things in life meant we have less savings in our bank accounts than we had hoped. Don’t feel down though, you could still have happy retirement. Use this 5 tricks that seniors use to retire on less money.
1. Reevaluate your priorities
Do you really need to live in the most expensive place? With the most expensive 5 bedroom house so your kids can visit once a year? Think about what is more important and where you’d like to spend your money. Write a list of 10 things that are most important to you when you retire. After you’re down with the list, prioritize them in order from 1 to 10. Try to achieve the top 5 things on your list and give up on the things on the bottom of your list. It’s all about downsizing. Is it more important for you to live close to all your friends or family or to live close to the beach? Think hard about this because the answer is very different for every person. If you are retiring with a partner, you should both work on this list separately than compare your results. Be prepared to compromise!
2. Reduce your travel time and expenses
Many people say you can’t retire without traveling the world, but just because some people feel that way, doesn’t mean you have to. Don’t feel pressured from friends who come back from their vacation with hundreds of stories. Traveling is not for everyone, and it can be extremely expensive. If you do want to travel, start small. You don’t need to commit to a 5 months cruise around the world on your first trip. Start with one week away to a place you’ve always wanted to visit and see if you want to go again. You’ll also come to realize that traveling is exhausted, and sometimes you’ll be more glad to get back home than you were to go in the first place. Also, find local activities in your area so that you don’t feel like you’re missing out. Be a tourist in your own city! Also, if you have friends and family, don’t be shy to ask if you can stay with them, this could save you a lot of money in your bank account!
3. Find a close group of friends to retire with
There are many benefits to retiring with friends rather than alone. The first most obvious one is that it is way more fun! It is also much cheaper though. You can split costs and reduce waste. For example, if you and a close friend are both willing, you could even share a car. Find a deal that suits you both and figure out if your schedule compromises each other. Also, if you have a close group of friends you can have fun doing even the most simple of activities. Get together often and play cards or bingo. Find local events to attend together. Host meals and invite each other. You don’t need a luxurious life style to retire in happiness.
4. Take advantage of community resources
Aren’t you already paying taxes to your local government? This money goes towards many things that you should be taking advantage of. For example, why buy a new book or movie when you could be borrowing one from the local library? Also, find out what adult education classes are available in your town. You might be able to learn a new language! Something you’ve always dreamed of doing but never had the time or patience. Also, don’t be shy to always ask about senior discounts, that’s what they are there for. You’d be surprised about how many places offer this discount. You could save money in ways you never even imagines.
5. Encourage your kids to be more independent
Often, a huge part of your money goes towards your kids. You don’t need to feel like it is your duty though. You’ve given them a lot of money throughout their lives, and it is healthier for them to be independent and not be constantly relying on you for money. It may be hard at first and they might seem hostile, but they’ll thank you later. Encourage your kids to pay for their own cars, their own vacations and their own mortgage. If you paused to think about it you’d realize your kids depend on you for a lot more money than you even know! You’ve worked hard for this money, you deserve to spend it on yourself!