If you are already retired and living off your savings, you are probably well aware just how important managing your finances can be.
If you are consistently withdrawing more money than you planned to, your nest egg may not last as long as you anticipated. And if your post-retirement investment returns don’t produce the amount you thought they would, you could be left with a smaller nest egg than you envisioned.
Whatever situation you are in, there are a variety of ways you can make your money last longer. By reducing your spending, you can keep withdrawals at a minimum and stretch your retirement funds as far as they can go. Here are 5 simple ways to save money after retirement so you can continue to live a worry-free life.
1. Downsize your home or rent out extra rooms
Downsizing your home is a great way to save money and even simplify your life in retirement. Not only will you reduce your mortgage payments, but your taxes, insurance, utilities, and other maintenance-related services will be reduced too.
On the other hand, if you own a home and want to rent it out while you travel, you can sublet it through services like Airbnb, Vrbo, and Silvernest. This will help you reduce your cost of living while earning income at the same time.
2. Reduce the number of cars
Having two or more cars made sense when you and your spouse were working and had to go to offices in different locations at different times. What was once a necessity is now a luxury. According to AAA, owning and maintaining a car can cost upwards of $8,000 per year. By sharing a vehicle with your spouse you can cut the cost of maintenance, gas, and car payments in half.
3. Maintain a healthy lifestyle
One of the easiest ways to save money in retirement is to prioritize your health. Preventive care is a huge money-saver, especially with today’s high healthcare costs. The Centers for Disease Control and Prevention recommends that adults who are 50 years and older get at least 150 minutes of moderate-intensity aerobic activity a week, plus at least two strength-building sessions a week.
4. Travel during the off-season
Since you no longer need permission from your boss to take a vacation or have to cram in a mini-vacation over the weekend, you should take advantage of the lower prices during the off-season. When destinations are less crowded, they’re also less expensive. Not only will your trip be more affordable, you’ll also enjoy a more personalized, unique experience.
5. Take advantage of coupons
Shopping for necessities such as groceries and household items will continue even after you retire. But that doesn’t mean you have to completely change your spending habits. In addition to the coupons you normally find in magazines and newspapers, make sure to check out some of today’s leading websites for coupon offers. A couple of our favorites are Coupons.com, Coupon Cabin, and RetailMeNot.
Plan early. Enjoy a happy retirement.
If you are concerned about running out of money in retirement, then we recommend that you develop a financial plan with our retirement planning advisors and follow the aforementioned recommendations to ensure that you and your spouse are financially stable in your golden years. For more information about our services and ways to save money after retirement, contact Secure Money Advisors today at 724-382-1298.