Do you know that according to some stats in 2019, 22% of Americans have less than $5,000 saved for retirement and 15% have no retirement savings at all? While money isn’t everything, it is important to have enough to live by as a retiree comfortably. You can still reassess your spending and savings plan if you’ve yet to retire. But if you’ve already bid goodbye to the workforce, then it might be a little tough for you to save in traditional ways. Nonetheless, there are still some top tips for saving in retirement. Read on!
Draw Up a Budget and Stick to It
It’s easier to track your spending when you have a budget and stick to it. Based on the lump sum savings you have for retirement, use that to draw up your monthly budget and list down your daily expenses on an excel sheet.
By the end of each month, you would be able to review the total amount spent for that particular month. Then, take the balance and set that money aside for savings or other purposes such as wise investments. Remember to stick to the routine so you can build up a good habit of recording your money outputs.
Downsize and Sell Your Possessions
When your grown-up kids have started their own families or moved to another city for work, you probably don’t need to stay in such a big house anymore. Downsizing by moving to a smaller apartment and selling your possessions can help you get some instant cash to add to your retirement sum.
You can also consider moving to a senior living community if that makes sense for you financially. In fact, many living communities offer rent-lock guarantees so you can be assured that the rent stays the same for the first few years of your residence.
Have a Hand in Less Risky Investments
While it’s safe to park your retirement quantity and savings in the bank, the interest rates do not earn you much. You don’t have to be as adventurous as you were when you were 25, but do have a hand in some investments.
In this way, you will be guaranteed some money growth rather than just relying on your savings account to increase. Always read up and do your due research before you buy any stocks in the ever-volatile market. When unsure, do not proceed.
Move to a Place with Lower Cost of Living
Previously, we’ve mentioned how selling your home and moving to a senior living community could do you wonders financially. Apart from that, you can consider also moving to another city or country with a lower cost of living.
However, do note that retirement in another country means you might not be able to readily see your family members face-to-face. However, if the cost of living is low, you will be able to stretch your after-retirement life and have more funds to last you throughout the journey.
For folks who started planning for retirement late or find themselves quite tight financially, following the tips above can help you to save money in retirement. For quick cash, you might want to downsize and sell your possessions. For longer-term considerations, ponder over investments or move to another country that is cheaper to live in.