As a retiree, when your bank account starts looking a bit lean, it’s easy to start panicking. After all, it’s not like you can suddenly put in more hours to get some extra funds. But it doesn’t have to be the end of the world, as you can stretch your funds further in many creative ways. Here are 18 things retirees do to keep financially afloat.
Moving to a Different Spot
When money’s tight, many retirees decide to downsize because moving into a smaller place can save a bunch on rent. And let’s not forget all that cash you’ll save on utilities and upkeep. Downsizing will reduce your monthly expenses, and honestly, a smaller space is a lot easier to manage, although there are some things you should watch out for.
Clocking in Part-Time
Who said retirement means no work? Many retirees start part-time jobs to bring in some extra cash, which could be relaxing, like working at a bookstore or putting in a few hours at a local coffee shop. Some are even using their years of expertise to become freelance consultants. Either way, they’re keeping busy and making money.
Early Social Security
In some cases, retirees start their Social Security benefits a bit early at 62. While it does reduce your monthly checks, you don’t always have a choice when you need money ASAP. Even so, it’s not the best idea, and you should try to limit your early Social Security withdrawals as much as you can.
Smart Investing
Changing where you put your money can make a big difference. Some retirees change their investments to focus more on getting regular income, like through bonds or stocks that pay dividends. When the paychecks stop, making your money work harder is both smart and necessary.
Getting a Helping Hand
There’s no shame in reaching out for help. Programs like Medicaid or Supplemental Security Income (SSI) are available for people who need it for essentials like healthcare. Of course, applying might take a bit of paperwork, but the payoff is worth it because these benefits can cover things like doctor’s visits and prescription drugs.
Slashing Extra Spending
When it’s time to tighten the belt, your luxuries should be the first to go, and many retirees decide to cut things like cable or eat at home more often. Check out your monthly subscriptions and memberships to see if you can find any hidden savings. You don’t have to stop them permanently until you can get your income back on track.
Local Free Stuff
Many places have special deals just for retirees, like food assistance or free rides. You just need to know where to look. Take advantage of these benefits to stretch your budget, whether at a community center or senior club. Many local libraries also have resources and discounts that many retirees don’t know about.
Considering a Reverse Mortgage
If you own your home and need some extra money, a reverse mortgage can be a way to get some cash out of your property without moving. It’s a big decision but can give you a little financial breathing room. Of course, you need to be careful about making this decision, and you should only ever do it after speaking to a financial advisor.
Selling the Stuff You No Longer Need
You’re not using that old set of golf clubs or that second car, so why not sell them? This way, you can turn clutter into cash, which is handy when your savings are low. There are so many online platforms out there, and you can even try garage sales to clear out unwanted items and improve your finances.
Cutting Costs on Meds
Healthcare can take up a big part of a retiree’s budget, so switching to generic drugs and getting free health checkups can save you quite a bit. You should be proactive with your health by getting regular screenings and sticking to a healthier lifestyle. This can prevent more expensive treatments down the line.
Tidying up Debts
Combining multiple debts into one with a lower interest rate can make them easier and cheaper to handle. You’ll save money on interest and also simplify your financial situation so you can focus on enjoying your retirement. Even making a small reduction can help you avoid those massive monthly expenses.
Making Money With Crafts
More creative retirees tend to use this skill to create and sell things like knitted scarves and handmade jewelry to earn extra cash. This hobby can become a good source of both fulfilling and rewarding income. Try visiting local craft fairs or checking out online marketplaces to sell your creations.
Sharing Your Space
Roommates aren’t just for college kids, and renting out a spare room can cut down on expenses big time. If that’s not your thing, then perhaps try moving in with your kids. This arrangement is good for both your mind and your wallet, as you’ll get to socialize with younger people. It’s a win-win situation.
Volunteering for Perks
Some places will give retirees meals or other benefits in exchange for doing volunteer work. This means you can give back to the community while also easing your own expenses. What could be better? It’s a great way to stay connected and productive while getting a kickback.
Learning to Budget Better
Sometimes, the best course of action is to take a budgeting or financial planning class. These classes will teach you important skills to help you stretch your retirement savings to their limits and avoid any financial problems. You’ll also get to meet other retirees who are in the same boat.
Joining a Carpool Group
Driving alone can use up your gas budget, so many retirees join carpool groups to reduce those costs. Carpool groups help you split gas money with friends or neighbors when you go to the same places, like grocery stores or events. It’s a good way to stay social and keep in touch with people who live nearby.
Switching to Energy Saving Appliances
Upgrading to energy efficient appliances might sound pricey, but it’s a move that definitely pays off in the long run. Many retirees buy LED light bulbs or energy-saving appliances to reduce their monthly utility bills. You’ll also get rebates or tax credits to help with the initial cost.
Attending Timeshare Presentations
Believe it or not, attending timeshare presentations can be a great way to get some freebies. Companies often offer incentives like free hotel stays or event tickets just for showing up and listening, which is great compensation for sitting through a sales pitch. The rewards can make it worth your while, especially when you’re looking to save on entertainment costs.
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