Tuesday, April 30, 2013

Living on a Budget after Retirement

Frugal living is not easy even if you have a job. There are so many things to think of, to budget and to decide. Most of the time, a regular wage is not enough to cover the expenses you need to settle monthly. In fact, it has now become a big challenge to live decently. How much more if you are nearing your retirement age? 


For some people, retirement is never an issue especially if they have ample savings for their future. But for the majority whose salaries are good enough to let them survive each month, life after retirement is still hazy. Does this sounds familiar? Well then, here are a few tips to help you get through your retirement and live a frugal life.

Plan Ahead Where to Retire


Before your retirement period, it is essential to plan things ahead. Decide where you want to spend your retirement. Do you want to stay in your home? Or, are you planning to move in another place where costs of living are lower? The cost of living in each state and city varies. For example, if you are living in a big city like NYC, obviously, you need to spend more. 

If you want to live on a budget after retirement, find an area with cheap cost of living than your current place. Some cities have lower property taxes and housing rates. In addition, these areas might have lower personal and sales taxes. One good example of city with low-cost of living is Austin, Texas. In this city, the costs of housing, food and transportation remain cheap in comparison to other cities. 

Live in a Smaller Home


If you used to live in a 5-bedroom house, it’s about time to reconsider letting it go. At this age, chances are, your children are grown up and have their own family. Staying in a big house with only two of you living will really make you feel empty. And this is even worse, if you are alone. Additionally, huge home requires more maintenance, which means more budget and work needed. 


Downsize your retirement home. Look for a smaller house or an apartment that can accommodate you (and your partner if you have). Smaller living space consumes less energy. And, less energy used means low utility bills. Thus, this enables you to save money and minimize expenses. Above all, the best thing about small home is less maintenance. 

Invest Only on Essential Things


After retirement, you might be tempted to buy anything that catches your attention with your retirement fee. Resist temptation! This will likely drain your finances in no time. If you want to buy something, make sure it is of great use and you really need it. Don't buy a brand new couch just because it has a very nice shade. If you really need it, go for it. But if it’s not necessary, do not spend your money. 


When it comes to your health, you should never be stingy. Investing in medical devices, like medical guardian, is essential if there is a need for you to have it. Health must not be neglected at this stage. The most important thing to keep in mind is to be wise. 


So, these are just some tips on how to live on a budget after retirement. Remember, planning is a vital element to have a successful retirement.

This article is by Ashley O’connor.


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