Retirement is a time to escape the daily grind, pursue your passions, and enjoy the fruits of your labor. However, only some of the good things in life come cheap, so your retirement fund can quickly be depleted. We look at 18 unusual ways to cut retirement costs to ease your financial stresses:
Rent a Room
If you have a spare room in your home, why not consider renting it out to generate extra income. This arrangement would not suit everyone, but if you have a large home that allows you to enjoy your own space, then renting to mature students or young professionals may be an option. Not only will this offer you extra cash to enhance your retirement, but you will also gain companions along the way.
Downsize
If renting out a room to supplement your retirement is not for you, opting for a smaller home will significantly reduce your outgoings. Smaller houses offer lower property taxes, utilities, and maintenance costs, freeing up resources for having fun during your later years.
Relocate
To completely overhaul your living arrangements, you can relocate to an area with a lower living cost. This could be to another state or country if you are adventurous. Housing, food, transportation, and other expenses can be significantly cheaper in specific locations, leaving you with more disposable income for travel, hobbies, or simply enjoying life without financial stress.
Monetize Your Hobbies
Whether a keen knitter or loves to paint, you can turn your passions into profit. Online marketplaces such as Etsy allow makers to swell their wares hassle-free. Alternatively, you can simultaneously attend craft fairs and farmers’ markets to sell your goods and meet new people. Offer consulting services related to your expertise or even teach online courses.
Rent Out Your Stuff
If you have a garage full of tools you use sparingly or your car sits on the driveway for weeks, consider renting them out to earn extra cash. Renting your stuff is a great way to subsidize your retirement as long as you have a contract to cover damages or loss of the items.
Join The Gig Economy
Being retired does not mean that you have to give up work altogether. To keep yourself busy and help with your retirement costs, you can embrace the flexibility of freelance work, such as tutoring, dog walking, or delivering parcels.
Make Your Life Insurance Pay While You’re Still Alive
Specific permanent life insurance policies (whole life, universal life) offer living benefits riders who can access part of your death benefit while you’re still alive. These policies can offer peace of mind, knowing you have resources available in times of emergency, such as becoming chronically or terminally ill.
Travel Off-Peak
Traveling is high on the list for many retirees, but it can be costly, especially during peak season. Rather than limit your vacation time, you can think smartly and plan your vacation time out of season, where flights and hotels will be less expensive.
Grow Your Own
Growing your food in retirement can be a fantastic way to save money, enhance your diet, and enjoy a fulfilling hobby. You can start small by growing your favorite vegetable in your garden, and as you grow in confidence, you can look at renting a space at a community garden to grow a more substantial amount of food.
Two Wheels Are Cheaper
Cars can be expensive to run and maintain, so consider cycling or walking for short commutes or errands. Not only is it eco-friendly, but it’s also good for your health, and you can join community walking and cycling groups to meet other retirees.
Carpool
If you live in a remote area and rely on your car to get around, consider sharing rides with friends or neighbors for commutes, errands, or even road trips. Splitting the cost and enjoying company makes the journey more fun and affordable. For example, you can arrange carpools by word of mouth or advertising in your local newspaper.
Senior Discounts
You may cringe at being called a “senior,” but we say you should use it to your advantage. Utilize senior discounts on public transportation, museums, entertainment, and even some restaurants. Every penny counts when you realize the amount of things you still need to pay for despite not working.
Reverse Mortgages
Reverse mortgages are a financial tool designed for homeowners aged 62 and above. They allow you to access the equity you’ve built up in your home without selling it or receiving funds as a lump sum, monthly payments, or a line of credit.
Become a Library Lover
Libraries are treasure troves of free resources, as you can borrow books, DVDs, audiobooks, and even musical instruments, all for the cost of your library card. You can also use computer and printing services if you cannot upgrade your technology.
Volunteer Your Time
Volunteering not only benefits others but can also keep you active and engaged. Many organizations offer training in your chosen field, and you can reap the rewards of freebies and discounts at your company.
Houseswap
If you find that you have to reign in your vacations a few years into your restaurant, think again. Alternatively, for expensive vacations, you can trade homes with someone in another location for a unique and budget-friendly travel experience.
Barter Your Skills
Swap your handyman skills for gardening help, language lessons for haircuts, or cooking expertise for car maintenance. Bartering builds community relations and will save you money on expensive tradespeople when you need a job.
Embrace Minimalism
A good spring clean can make your retirement a lot calmer and fuss-free. Declutter your life by selling items you no longer need and taking up valuable space in your home. A good clearout will also reduce the temptation for unnecessary purchases that will eat into your retirement fund.
