Retiring seems like the time when all of our work pays off. I certainly looked forward to a time of pure relaxation after giving it all in the prime years of my life. We spend most of our active years working away in our respective fields. We put in the blood, sweat and effort required to make a living for ourselves and our children. Retirement should be a time when we are pampered; a time when we should worry about nothing else but our wellbeing.
The reality of it is that you will experience a loss of a steady income –something you relied on heavily before. With no money coming in, you have to figure out a way to save money so that you can maintain your lifestyle and pursue any activity you wish. While this process can seem hard, I have compiled a list of ways you can save money once you retire.
The one thing that will massively benefit you is the concept of prioritization. Evaluate what your needs are and adjust your spending accordingly. More often than not, you will find that it will lead you to managing to save more money for the things that matter in life.
For instance, something as trivial as an internet connection can be the most important expense as it allows you to remain connected with your family, listen to music, read books as well as watching films and TV via streaming. Its multifaceted nature is what makes it a worthy investment.
- Sell Stuff Online
As well as saving money you also have the option to generate additional income. This could be done in a multitude of ways, the most common being getting a part time job. However, that is something most people are not inclined to do since they want a break from working. So instead, why not try and create some extra cash by selling unwanted items on sites like eBay, Facebook Marketplace or Gumtree?
- Relocate / downsize
It is natural for us to want to retire in a house we have lived in for most of our lives as its the place where most of memorable moments occurred. However, you may not need the same amount of space you once did, but still be paying the same amount out each month you were when you had the whole family living at home. If this is the case you could decide to downsize to reduce your monthly outgoings as well as taking some of the equity out of your property at the same time.
- Use one car
If you have a partner or spouse and you both drive, you will likely both have your own car. Whilst this may provide you both with a level of independence, it doesn’t always make financial sense. So if you can afford to from a practical and logistical point of view, sell one car and just share a car between you. This will save paying for insurance, tax and petrol twice.
Once you retire, don’t cash out all of the investments you made. It will be highly beneficial if you maintain the investment long term. So if you have shares or savings, try and keep the money invested. If you need to drawdown some funds, do it gradually rather than taking a big lump sum at the start of your retirement. However, if you do need to take a large sum out, use it for something else that can generate an income (such as a buy to let property), rather than spend it on luxury high ticket items that have no investment potential (such as holidays)