DON'T LET A FIXED INCOME HOLD YOU BACK: HOW YOU CAN HAVE IT ALL WHEN YOU RETIRE
Updated: Jun 3, 2021
You’re about to retire, but you aren’t certain how you’ll fill your days anymore. Despite being a senior, you still have plenty of energy and life left in you. Now that you finally have the time to do what makes you happy, can you actually afford it?
According to MarketWatch.com, “A comfortable retirement doesn’t come cheap,” and the cost can largely depend on where you live. Everyone deserves to flourish in their golden years, regardless of what their postal code is. Read on for clues to how you can have it all in retirement, despite your fixed income.
CASH IN ON YOUR HOME FOR EXTRA COIN
One of the most valuable assets in your possession is your home, or rather, the equity in the home. Realize the value in your property and use it to fund your retirement in a number of ways, including selling, renting, and borrowing.
If you’ve always wanted to move to a warmer climate, selling your home and putting the equity toward moving expenses is truly the way to go. Now is the time to be happy and buy yourself that single-level cabin with a private dock that you’ve secretly wanted for years. Sometimes, the market’s health doesn’t align with your plans, though, and you’ll be forced to wait. If this is the case, or you prefer to remain at home, there are alternatives.
Consider renting out a bedroom or the home itself to supplement your fixed income. A tenant will give you another hand in maintaining possibly your most valuable asset, and a roommate would fulfill a sense of companionship you might otherwise miss out on in retirement.
According to SixtyAndMe.com, “social connection is the number one health factor when it comes to reducing the risk of dementia and improving our overall health and well-being.” By getting a roommate, you’ll be increasing your monthly income and health. While one person may not meet all of your social needs, roommates are a good cost-effective option for seniors.
Acting as a landlord also might give you a sense of purpose. At the very least, it’ll be a productive way to bring in more money to fund your excursions and hobbies. How can you enjoy yourself if you’re constantly worried about finances?
Whether you’ve saved for years or never mapped it out, retirement should be one of the greatest times of your life. For once, you’ll be able to decide where you’re going to be throughout the day, seven days a week. How you choose to spend your days are up to you — and your wallet. So, come up with a budget that allows you to live the lifestyle you want while retaining some spending money for interests you’d like to pursue. You never want to break the bank when you’re on a fixed income, so you have to set limits for yourself. Before creating a budget, look to your expenses and see if there’s any way you can save on those.
For example, are you saving as much as you can for auto insurance? It’s something you have to have, at least the minimum coverage, but every company has different ways to save, including discounted rates for bundled policies, cars equipped with anti-theft devices, safe drivers, and people who keep their mileage low each year. It’s a good idea to get in touch with your insurance agent to discuss ways to save that you might not be aware of.
You could save hundreds of dollars every year by gathering quotes and comparing pricing and coverage through numerous auto insurance companies. The money you save by doing so could be put toward your movie tickets or continuing education classes at the local community college. Savings, after all, frequently lead to merrymaking.
INEXPENSIVE RECREATION ON A FIXED INCOME
When you near retirement, everyone begins asking what you plan to do and where you’ll go. Remember that you do not have to go all out to make the most of your time. You can find something budget-friendly to do, no matter how big or small you want to go.
Here are some ways to keep busy on a budget:
Research your family genealogy
Spend time with family
While traveling across the US in an RV is a dream for some, you might prefer to stay home and read. Wind up or wind down in your retirement, “and make sure you do what matters to YOU,” like Kathleen Coxwell states in her article for NewRetirement.com. Write down what can you offer, what you need, and what matters. With these answers, deciding what to do next is simple.
—This guest post was written by Karen Weeks of elderwellness.net.
At Educated Wallet, we offer online courses that provide you with the knowledge and tools needed for building a personalized financial strategy. Money Guide for Millennials is a course built and dedicated specifically to Millennials, to guide them through the financial strategies that will efficiently help them in their planning. For more information, visit https://www.educatedwallet.com/courses.