If you plan on retiring in 2025, one of the best ways to prepare for it is to start downsizing your life. That includes downsizing your responsibilities in addition to your possessions so that you can increase your mental space and time for your golden years.
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Retirement should be a time of relaxation and enjoyment after a lifetime of hard work. Getting to do what you want is a big part of what makes retirement worthwhile for so many people. However, it’s hard to enjoy planning your days exactly as you want if you’re stressed about your finances. So, here are several ways to downsize your life to prepare for the coming years.
Downsize Your House
Downsizing your home is one of the easiest ways to lower expenses if you want to retire soon. Maintaining a home can be expensive and time-consuming. Caring for a house can be a lot of work, from lawn care to cleaning. Moving to a smaller place can cut the time needed to maintain your house. Plus, you can profit from selling your home, and that money can help supplement your retirement savings.
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Eliminate Debt
It can be incredibly challenging to manage debt payments while you’re trying to relax and enjoy your retirement years. In preparation for retirement, work hard to eliminate your debt, especially if you have high-interest debt, like credit card debt. This is another way to downsize, except instead of downsizing your home or your possessions, you’re downsizing the amount of monthly payments you have, which can be incredibly freeing.
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Sell Unused Assets
It’s easy to accumulate assets over your adult life. You might have an old car you’ve been working on, an RV you rarely use, and even some sports equipment from another point in your life. Now is a great time to sell unused assets. You get the double benefit of clearing out your space and earning extra money for your retirement goals.
Change Your Entertainment Habits
If you frequently go out to eat or go on expensive vacations, now might be a good time to reassess your entertainment habits. Retirement is, of course, about enjoying yourself. However, cutting back on some of your more frequent entertainment habits can go a long way in ensuring you can meet your retirement goals. Changing habits doesn’t mean not having fun; you can always opt for staycations or inviting friends to your home instead of going out to eat.
Consider Moving
If you live in a high-cost-of-living area, take some time to explore new places to live. There are even many places abroad that are much more affordable to live than in North America. It’s possible you can even retire sooner rather than later if you move to a place with more affordable housing, utilities, and even healthcare.
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Keep a Budget
When most people hear the word budget, they think of restricting spending. However, a budget can actually give you permission to spend. A budget is simply a record of the amount of money you have coming in and the amount you have going out. Starting one and seeing your spending patterns can help you prepare for your retirement years when you might be living on less than you are right now.
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This article originally appeared on GOBankingRates.com: 6 Ways You Can Downsize Your Lifestyle if You’re Planning To Retire in 2025
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