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The numbers about how much Americans have saved for retirement are disheartening. Seventy percent of Americans worry they won’t have enough money until retirement, and just over a fifth have nothing put away. Nonetheless, it makes sense to reduce living expenses once you stop working, regardless of how much you’ve managed to save. When you enter retirement, consider these strategies for cutting costs.
Move to a Smaller Home
During retirement, downsizing your home can be one of the most effective and significant ways to reduce the money spent on daily living expenses. You’ll be able to put that time and energy you would have spent on home improvement tasks into other pursuits, as well as the money you’ll save on utilities, repairs, and taxes.
Relocate to a Cheaper Area
It makes sense to relocate to a place with a cheaper cost of living if you intend to downsize your home and lifestyle. You may make your retirement savings last longer by reducing your regular spending on groceries, gas, and services. Some great places to retire and live comfortably on less than $40,000 annually include Mississippi, Kansas, and Alabama.
Sell Your Vehicle
You and your spouse likely maintained two vehicles for many years before retiring in the same timeframe. When you retire, you can finally get it down to just one. You’ll be able to get by with only one car if you don’t have to worry about coordinating schedules. Even more, money can be saved by forgoing a car altogether if you reside in a walkable region with excellent public transportation. No vehicle means no car payment, auto insurance, maintenance, gasoline, or registration fees. This may take some time, but the savings can be substantial.
Travel During the Off-Season
You can now take trips at your leisure rather than waiting for special occasions or school breaks. You are free to leave whenever the fancy takes you! That’s wonderful news for your wallet because prices for flights, hotels, and tourist attractions tend to drop significantly when they’re not at their peak. Remember to inquire about senior discounts and freebies when planning a trip.
Don’t Forget Your Senior Discounts
Whilst we’re on the topic, now is a great chance to make the most of those senior discounts. It’s a simple method for saving money in old age. Seniors can get discounts on various goods and services, such as meals, insurance, shows, and merchandise. But, it often takes little more than requesting a senior discount when you’re out and about. Even if you’re not on a fixed income, saving a few bucks here and there can make a big difference over time.
You should be able to retire without worrying about money. If you try to reduce the amount of money you spend during retirement, you will have fewer concerns to juggle as you move into this new and exciting phase of your life.
Reviewed and edited by Albert Fang.
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Article Title: 5 Easy Expenses to Cut in Retirement to Stretch Your Savings
https://fangwallet.com/2023/04/18/5-easy-expenses-to-cut-in-retirement-to-stretch-your-savings/The FangWallet Promise
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