Start Planning Your Retirement by Minimizing These Expenses
Congratulations! You’re nearing retirement and looking for ways to get ready. If you’re like most people, you’ve probably been thinking about the fun stuff for a while. You know how much you’d like to travel. You might even have a pretty good idea of where you want to live. Now comes the hard part: figuring out how to pay for it all.
You start here, in minimizing your expenses before you even get to retirement. This serves a two-fold benefit. First, you’ll get used to living on a different income than you do presently, as one in three people who retire don’t have enough money to maintain their current lifestyle. Secondly, you might even be able to set aside a few extra funds to carry you through your retirement years. Intrigued? Let’s get started.
Define Your Retirement
Do you have a clear idea of what your retirement will look like? If not, now is the time to figure it out. Are you retiring fully or working part-time? Are you traveling or staying at home? Do you want to move? Figuring these things out now will help you to create a more accurate budget of your future needs, so you know what you need to set aside still today.
How often do you drive? Do you have more than one vehicle? Do you need both? These are things to think about as you retire. Reducing vehicles or switching over to public transport can save you a lot of money in the long run. If you don’t go to many places, you might even think about switching over to a service like Uber or Lyft.
Drop the Debt
Anything high-interest should be gotten rid of as soon as possible. If you can, consolidating everything and getting a single loan to pay it all off now might wind up saving you considerably when you add up fees and interest. Talk to your financial counselor about the best options.
Re-think Your Mortgage
If you can, paying off your house before you retire takes a massive chunk of your expenses off the table completely. Or it might be possible to refinance for a lower interest rate if you’re not close to having it paid off.
When you first start minimizing your expenses, you’re going to be surprised at how quickly you can free up funds. This is a good thing! The trick, though, is to take the excess and put it away for later. This is about budgeting and preparing for the future. Soon though, you’ll be firmly on track and ready for your new lifestyle.