A frightening reality for many seniors is that they may find themselves running short of retirement savings. Also, Social Security benefits, while guaranteed for life, aren’t enough to live on for many.
Without any other income, seniors may feel trapped and panic.
First, if you find yourself in this situation, there is no need to panic. Realizing that you didn’t save enough for retirement is a formidable obstacle, but one that can be overcome.
It will require a radical lifestyle change, but you will be able to dig yourself out of this financial hole.
Here are three ways to save cash in retirement:
Use one car
The easiest way for seniors to start generating some income while also saving money is to eliminate a vehicle.
If you’re retired, there is a good chance your spouse or partner is retired too. Since neither of you are commuting to work it really doesn’t make sense to own two vehicles. You can make some fast cash by selling the unwanted vehicle.
It may even be in your best interest to own no vehicle at all. If your area is highly walkable, or if there is a robust public transportation service, this may be something to consider as well.
Move to a smaller home
Another course of action is to downsize your home. If you still live in the big family home that you raised your kids in, there is a good chance that the cost of maintaining this residence is eating up a huge portion of your monthly budget.
Like with the car example, it really doesn’t make sense if it is just you and your partner living in this big home. The kids are gone so all that extra space isn’t really needed.
This is true even if you have paid off your mortgage because you’ll still be on the hook for property taxes, insurance, utilities, and other various maintenance expenses.
Ideally, you could sell this bigger home and the generated income would allow you to buy a smaller residence, mortgage-free.
At that point, you could use the extra money to make some investments or use however you see fit.
Finally, consider moving to a place with a lower overall cost of living.
Throughout the country, there is a drastic disparity in the cost of necessities and utilities. Trying life in another state could be one way to make your money last longer.
If you live in a costly part of the country, the coasts, and other major urban centers, there’s a good chance spending on the basics will eat up all of your Social Security income.
This means you will have to constantly be drawing against your savings. The less you have to draw against your savings, the bigger your nest egg will be, thus making your retirement more enjoyable and worry-free.
Thoroughly research any area you might be moving to. Some topics you will want to look into are quality of life, the weather, local taxes, and the cost and availability of healthcare services.