5 Smart Recommendations for Downsizing Expenses Before Retirement
You know it’s coming, and you might even have a plan. But just how ready are you for retirement?
One of the most significant changes you’re going to experience with retirement will most likely be in a shift of income level. The sad truth is, most people don’t have enough to live in the same lifestyle they enjoyed pre-retirement. Almost 30%, in fact! There is a way to put the numbers back in balance, though, if you’re willing to put the work in now before you leave your job. It starts with downsizing your expenses, both to save money and to help adjust easier once you do retire.
How do you do that? Start with these smart recommendations, guaranteed to help get you on track:
Create a Proper Budget
Have you been in the habit of budgeting? If not, now is the time to figure it out. Tracking your current expenses is a great way to get an idea of what your future expenses will be.
Give Yourself a Check-Up
How is your health? Medical expenses, once you retire, tend to increase with every passing year. While you can’t always control this aspect of things, you can work now to manage your health better. By taking the time to get in shape and build a solid exercise regime and good dietary habits, you can prevent a lot of high-ticket health problems such as heart disease or diabetes. What’s more, even if you already have some of these issues, working to build up your health will help prevent further complications from developing. This just makes sense, no matter how you look at it.
Reconsider Student Loans
As parents, it’s easy to get sucked into the idea of paying for your child’s college. This can become a considerable drain on your expenses, though. Rather than take this route (which can have very high interest), you might want to look at taking out another kind of loan with smaller interest to cover this kind of expense.
What About Insurance?
No matter what, you’re going to need health insurance. Life insurance, though, is trickier with a lot more options. Be sure to talk to someone knowledgeable about this to make sure you’re optimizing your choices.
Finally, talk to a financial advisor if you’re having trouble getting a handle on expenses. They can go through your expenditures with you and recommend ways to cut things you might not have considered on your own.
Downsizing expenses doesn’t have to be overly complicated, nor do you need to be a math whiz to figure this out. Simply put these tips into practice, and you’ll start seeing the benefits almost immediately. Soon the idea of downsizing expenses will become automatic, and you’ll be firmly on track for retirement.