Once you retire, your income may drop. If that is what you are facing, it’s time to look at ways to lower your cost of living. There are numerous way to do so, but many will depend on where you live.
Downsize your home. A smaller house is likely to cost less and have lower upkeep. Repairs should cost less, as well with a smaller place. Choose the smaller home away from the most popular areas to keep the sales price down.
Consider a condo. Condos tend to cost less than houses of the same square footage. Just be sure to factor in maintenance fees that pay for outside upkeep.
Choose your retirement location with care. Florida, where I live, does not have a State Income Tax, so you are saved that expense here. But houses are taxed at different rates in different states. Be sure you are comfortable with the tax rate.
Consider the cost of travel to visit family and friends when choosing your retirement location. If you must make costly trips to visit them, that could offset any savings gained from your home purchase.
Look for free or reasonably-priced activities where you want to live. If living close to the ocean matters, choosing a home far inland might not be such a good deal if you plan to make many trips to the beach. If you plan to buy tickets to the symphony frequently, then not living close to a city that offers such amenities might cause you to spend more on car expenses than you’d like. Are you a Major League sports fan? If so, find a location in or near a city that hosts your favorite team. That will require research to find affordable areas.
Utilities can vary. Look at installing a programmable thermostat to keep you from playing with the temperature in the house. Once a year, have your ductwork cleaned. That will help your air conditioning work more efficiently. If the hot sun shines in your windows, consider installing a heat blocking film on them. Make sure your dishwasher and washing machine only run with full loads. Take shorter showers to save on your water bill. Install a drip system for watering your shrubs. Be aware that electricity costs vary depending on where you live.
Stick to a budget! Keeping to a strict budget will make you more accountable for what you spend. It’s really easy to lose track of daily expenditures, so a daily recording of everything you spend money on will help keep you on track.
Find an affordable pastime. When you retire, you’ll have a lot of hours in your day to fill. When we first moved to Florida, we spent a great deal of time playing tourist. That was an expensive hobby! It didn’t take long for us to rethink our new lives.
This is a great time in your life to help others. Volunteers are needed everywhere. If you spend a day or two a week giving your time to a person or group in need, you’ll feel good about yourself and you won’t be spending money. I volunteered for almost 4 years in my church’s office. Some people volunteer with Hospice or a hospital or animal shelters. It isn’t difficult to find someone who needs your talents so you can settle on what really interests you.
Check your local library for books, audio tapes and even movies to check out for a couple weeks at a time. Local YMCA’s all over the country offer inexpensive exercise programs for seniors. Look for community concerts that may be free or low cost.
Lower your tax bill. According to money.usnews.com/money/retirement/articles/2014/03/24/10-ways-to-significantly-cut-retirement-costs once you retire, income tax will be due on withdrawals from traditional 401(k) and IRA accounts. You can space out your withdrawals to avoid hefty fees in a single year. Consult a financial expert to determine what other cost saving measures might help.
Low-cost legal assistance. Check with Legal Aid orBar Associations to find the help you need. Some attorneys offer lower rates for seniors.
Medical care at a discount. Watch your local newspaper for notice of free testing for various medical issues. Some dentists offer lower rates for seniors. It never hurts to ask. Check with local dental school programs to see if they offer low-cost care.
Reduce your food costs. Shop for groceries at discount stores like Walmart or Costco for most items to save money. You can always run to your nearest meat market for meat that you don’t care to buy at a discount grocer. Watch for grocery store sale ads for items you normally purchase anyway. If you buy organic foods, expect to pay more for that. Living in the tropical climate we enjoy in Southwest Florida, we can grow fruit trees to have our own bananas, oranges, mangos and pineapples. Cookouts and beach picnics are much less costly than eating in restaurants. Carry cash when grocery shopping and leave those bank cards at home, so you don’t overspend. You can often save money on store brands.
Look for senior discounts. In Southwest Florida, seniors are treated pretty well with discounts and perks for our age. From restaurants, movies to seniors cards offering discounts on rental cars, hotels, etc. a little research will unearth some great deals. Check our page full of discounts here. Watch the Groupon ads for items you need. You can find great discounts on restaurant meals, travel-related expenses and more.
