At Reardon & Associates, we understand that “retirement is meant to be enjoyed.” A fixed retirement income shouldn’t take away the freedom to enjoy your golden years. Finding ways to save during retirement, however, can feel impossible, but it really doesn’t have to be! There are countless ways you can lower your costs and reduce your spending during retirement so that you will have more leftover for the activities you really love.
Below, we offer some simple steps you can take to make a limited budget work for your retirement:
Start With Your Healthcare Costs
If you are trying to trim your retirement budget, it only makes sense to begin with the expense that hits seniors the hardest: healthcare. Given the rising costs of healthcare, it’s always a good idea to review your policy to determine if you’re paying for coverage that you don’t need. Checking your current policy and going over your options with a Medicare agent will ensure that you don’t face unexpected out-of-pocket costs.
Look at Your Transportation Expenses
Transportation is another common retirement cost you can easily trim. To do so, check your current auto insurance coverage to determine whether you’re getting the right amount of coverage at an affordable premium. If you’re not satisfied with your policy, you can research other well-known insurance companies and see if they offer discounts.
Consider Your Overall Housing Costs
Cutting expenses related to healthcare and transportation can help you make the most of your limited retirement income. To really reduce your overall expenses, take a hard look at your housing situation.
Fortunately, your home can be as much of an asset as it is an expense, especially if you can leverage your current home to purchase a more manageable home for retirement. Downsizing can be the easiest way to lower your overall housing and living costs, but only if the potential for savings outweighs the initial costs, such as buying a new home and planning a move. If you don’t want to downsize, you can also find other ways to reduce housing expenses, like getting a roommate.
Stick to Your New Retirement Budget
Once you figure out some ways to cut expenses, add those ideas to your retirement budget. Using online templates is a great place to start when creating a household budget, and having a visual representation of your income, expenses and spending can make it easier to stay on track. Visually tracking your spending is also a good way to see where else you can easily save money, whether that’s by cooking more meals at home or using detailed shopping lists.
Look for Ways to Supplement Your Retirement Income
Budgeting woes don’t necessarily mean cuts. You can also adjust in the other direction by starting a business. It’s a great way to solve money troubles if you go about it properly. That starts with choosing something you enjoy doing. You might call on old workplace skills to become a bookkeeper or tutor, or you can turn a pastime into a moneymaker, like selling your handcrafted wares on Etsy, landscaping, or tinkering with small engines.
The other key is being professional. Professionalism inspires consumer confidence, so start out on the right foot. Establish a proper business structure; many small business owners like an LLC for the asset protection it provides, so check out some LLC examples. You can easily establish an LLC through an online service. Then, create a website so customers can find you online. That might sound especially daunting, but you can use a drag-and-drop website builder that simplifies the process. Then do some advertising and watch the customers (and income) start pouring in!
Your golden years should be some of the most relaxing years of your life! Don’t let worries about money take that away from you. Spend some time fine-tuning your retirement budget, so that you can start spending more time savoring your golden years!
You want to make the most of retirement, and this can be a reality even if you're on a fixed income. Work with the experts at Reardon & Associates to set up a financial plan that can serve you now and in the years ahead. Call today to get started!
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