Many people experience setbacks that interrupt saving for retirement. If you find yourself approaching retirement age with sparse savings, look into these tips to enjoy a frugal retirement.
Trim Housing Costs
Houses and yards require a lot of maintenance, and that costs money. Consider downsizing to a condo where maintenance and landscaping is part of the overall cost. Look for less expensive housing in less expensive cities that still provide recreational and cultural activities.
Lose the Car
Many towns and cities offer discounted public transportation for senior citizens. Cars are a money pit, needing gas, insurance, and maintenance that can amount to hundreds or even thousands of dollars per year. Consider relocating to a village or city with stable public transportation for seniors.
Eat In
Dining out adds up. Clipping coupons and doing your own grocery shopping can cut costs significantly. Plan meals and shop once a week, buying only what you need for that week. You’ll have the flexibility to create meals you love at home while paying less for them.
Treat Withdrawals Like a Paycheck
Set up regular withdrawals from your retirement accounts that will deposit directly into your checking account. Retirement annuities can set up a regular payment schedule for you. Set a budget that uses only that monthly amount to pay your expenses. If you find you are over budget, reduce your living costs. Cut the cord with cable, buy used furniture, and cut your own hair. Little savings add up.
Stay Healthy
Americans tend to radically underestimate how much health care will cost in retirement. Plan ahead. Get insurance to supplement Medicare and provide long term care, if you can afford it. If you can’t, your best bet is to adopt healthy habits and try to maintain a healthy lifestyle to stave off the onset of illnesses associated with aging.
Sell Stuff and Buy Used
You probably don’t actually need half the stuff you have. Cull through your possessions and sell things you never use, clothes you never wear, and knick-knacks that are just taking up space, waiting to be dusted. Adopting a minimalist lifestyle will feel liberating. If you must replace a piece of furniture or décor, go on a fun treasure hunt through consignment shops or thrift stores instead of buying new.
Living frugally and being happy in retirement aren’t mutually exclusive. Focus on what you need, rather than what you want, and you may find you have a little cash left over to indulge in a new outfit. You may even be able to travel to a destination where you can housesit for free, enjoying all the benefits of the host home’s culture and sights.
