Money is the most significant source of worry for most people, and it is an even more significant source of stress for people who have retired. Also though it’s a phase in life that should be welcomed with relief and joy to be out of the workforce; finally, most people are disabled with anxiety once they think about retirement.
A lot of people start saving up for retirement early in life. However, unexpected events such as sickness or disaster may force one to use up all that they were saving. Once this happens, you have to start all over again, and it’s even worse if your salary is too little to sustain you. So what do you do once this happens? What do you do once you reach retirement age and the money in your bank account is not that impressive?
Here are a few tips to ensure the little that you have goes a long way:
1. Consider downsizing
Housing takes up the most significant part of anyone’s budget especially if you’re living in a rental. Even if you’re living in your own house, it’s still expensive to maintain a big house. From paying all the workers and cleaners to keeping machines in the home: it’s all too much and unnecessary.
Selling your house is an excellent start to getting money that could last you years. Once you’re at retirement age, the kids have probably moved out, and so it’s unrealistic to still live in a six bedroom house when you’re only 2 or 3 people.
A smaller house means less money on maintenance, and you probably won’t be needing any workers because then you’ll have all the time to clean up and maintain it.
2. Get rid of all your debts
Clear all your debts immediately you have retired or preferably before you retire and stay that way. Bank loans should especially be cleared before you withdraw as interest rates could go up and you might end up with no money.
Getting rid of debt ensures that you have your money under control and eliminates the stress of needing more money when you already have little.
3. Take advantage of senior discounts
There are lots of places where seniors are eligible for discounts, but most people don’t know. For example, did you know that as a senior you can get a free small drink with any meal as long as you’re over 55 years? McDonald’s also offers discounts on coffee every day for those who are over 55.
Such small discounts may seem insignificant at first but with time, spending money on such things may become too much of a burden. They help keep you afloat while ensuring that you’re not missing out on everything for the sake of saving.
4. Try retirement jobs
You don’t have to stop working just because the government says you should. According to research, people who stay proactive after retirement by getting jobs or engaging in sports live longer than those who stay home the whole time. This is especially true if you get a job that doesn’t involve too much stress and is something you enjoy doing.
A job will also keep you busy and on your feet, and it’s a way of getting extra cash. Working also reduces your chances of aimless spending which is so easy to do thanks to online shopping nowadays.
5. Wait for off-peak prices
During retirement, you have to be willing to enjoy certain luxuries a little later or earlier than everyone else. Stay home for Christmas with family and then travel during the off-peak season when there are not too many people. Prices on airplane tickets, vacations, movies, and restaurants are cut in half during the off-peak season.
Retirement doesn’t have to be a stressful experience. It’s the time when you finally get to enjoy life with your spouse and friends. Everyone who has retired will always have worries, and while this can’t be eliminated, proper planning can ensure that money is the least of your worries. This will give you time to focus on what matters and all that you’ve always wanted to do during the later years.