Generally speaking, most people will be living on less money in their retirement years than they are accustomed to. Even if you have saved enough money to maintain your income level, aging bodies require more upkeep and rising healthcare costs can drastically cut into your monthly budget in your twilight years. In order to help you retire with the money you’ll need to live through your retirement, Chuck Oliver created The Hidden Wealth System. Today we wanted to discuss four ways that you can prepare for retirement by reducing your cost of living.
1. Eliminate Your Debts
One of the easiest ways to improve your monthly budget and reduce your cost of living is to eliminate as much debt as possible before you retire. House payments, car payments, and especially credit card payments eat away at your monthly budget. Even if you’re trying to live on less income, eliminating your regular monthly debt payments can drastically increase the amount of money you have to spend on other things.
2. Downsize Your Home
In addition to paying off your home, you may want to consider downsizing your home right around retirement time. You no longer need the extra rooms or to live near a good school district, so downsizing just makes sense. Selling your large home and buying a smaller, less expensive home or condo can allow you to take the extra money and pad your nest egg. Also, if you make the move to a smaller home, you have fewer rooms to heat and cool, which can save you money on your utility bills, and if your new home sits on a smaller lot, you can also have less yard work that needs to be taken care of.
3. Consider Moving
While you’re looking for your new home, you may want to consider moving to a location with a lower cost of living. Many smaller cities have lower housing prices and more affordable amenities, making them ideal for retirement living. You’re no longer tied to your job, so you don’t have to worry about living within easy commuting distance. Look for places with great healthcare facilities as well as affordable housing and recreation.
4. Sell a Vehicle
Without the necessity of a daily commute, many retired couples can get along quite well with only one vehicle. Making the decision to sell an extra vehicle can have several benefits for the soon to be or newly retired. The money from the sell can add to your nest egg, but you also reduce your monthly expenses by eliminating the fuel, maintenance, and insurance costs associated with the extra vehicle.
As you plan your retirement, we hope you’ll consider using these four tips to reduce your future cost of living and make your life a little easier. Start today to work toward a better retirement.