You have worked hard your entire life and have spent the last several years gearing up for retirement.
Your portfolio is in good shape and you are ready to head off into the sunset and enjoy the best years of your life. But while you have planned well for this exciting new chapter, you still want to make sure to exercise wisdom and allocate, spend and enjoy your retirement savings the right way.
There are steps that you can take and things that you can do to maximize the money you save during retirement.
- Choose The Best Retirement Location For You – Where you choose to live will most certainly have a tremendous bearing on how much money you have to spend every month. Many people dream of retiring to a tropical paradise and living in a beautiful villa on the beach. If you realistically have the money to do that, then more power to you. Go for it! But if your portfolio isn’t quite that sizeable, take time to choose a geographical location that has a reasonable cost of living based on your budget. Cities such as Knoxville, Tennessee, and Albuquerque, New Mexico, allow for a very nice standard of living that can cost retirees less than $40,000 per year.
- Consider Owning Only One Car – If you haven’t done so already, consider your downsizing to just one car in order to cut expenses. Even if all of your cars are paid off, there is still the issue of gas, insurance, maintenance and other miscellaneous expenses that are part and parcel to automobile ownership. If you absolutely need two cars then so be it. But if you can realistically live with just one, it can potentially save you hundreds of dollars per month and thousands per year.
- Establish Money Saving Habits – There are any number of institutions that offer senior discounts on everything from retail outlets, travel agencies, restaurants and more. The savings that are available through these kinds of resources add up quickly if you use them consistently on as many of your purchases as possible.
- Less Is More – Spending your retirement living in the multi-bedroom house that you raised your family in is probably not the most fiscally responsible thing that you can do. Like cars, houses have ongoing expenses even if the house itself is paid off. Maintenance, insurance, property taxes and the like are all going to decrease if you choose to live in a smaller space. Additionally, if you have equity built up in your home, selling it in favor of something smaller will put some additional money in your pocket. It often is not easy for retirees to part with the home that they have lived in for decades and raised children in, but the money that can be saved by doing so can help make it a worthwhile decision.
Retirement should be an exciting time, but it still requires some frugality and wisdom if you are going to make the most of your retirement dollars. Following some or all of the tips listed here can be a big help in truly making these the best years of your life.