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by Liam Johnson

Many of us are excited to retire, but the financial realities of not working anymore can be challenging. Without a steady income, you might feel overwhelmed by the cost of daily life – especially with inflation and the cost of living rising.

However, there are some simple strategies you can use to make your money go further in retirement, allowing you to truly embrace this exciting time.

Don’t retire just yet

Perhaps the most obvious (and yet complicated) step you can take to make your money last is to continue working for longer. While this might be easy for some, if you are struggling with your work or are just ready for something new, this might not be a reasonable option for you.

If you can work for longer and retire a little later, this can increase the amount of pension you receive when you do retire, allowing for a more comfortable lifestyle. This is a great choice for those who were seeking early retirement, but are thinking twice. If you can live on a lower salary, you could discuss going part-time with your current employer.

Consider how you’ll receive payment

You may have the opportunity to choose how you receive your pension payments. Traditionally, it’ll be paid in monthly lifetime installments, to provide a steady stream of income. However, you may have the option to receive it in a lump sum, which could work better for your personal approach to finances. Before choosing, be sure to consider the pros and cons of each option so you can be confident with your decision.

Think about your property

If you are a homeowner, then it might be worth considering downsizing to a smaller home. Large houses can cost a lot in utilities and maintenance, and downsizing means you can enjoy spending less time tending to your home and more time on new hobbies and experiences.

If you can’t downsize, or simply don’t wish to, then there is an option to access equity release for your home – where you will receive a lump sum of money (essentially selling your home), while still being able to live in it. Be careful with this option, though, as it can have risks attached. Speak to a professional before making any decisions.

Curb expenditures

Your expenses are something you can control more tightly when you have time to focus on them. In retirement, you may feel like everything is more expensive, and now is a good time to cut back a little and spend your money more wisely on things you get real joy out of, like travel. You can create a budget that suits your new circumstances, establishing what your monthly pension income will be, and assessing your outgoings. If there is a financial gap in this, you can find out where you will be able to make adjustments to save money.

To sum up

Getting used to retirement isn’t always easy, but making sure that you are financially prepared will help. When considering how you can make your money go further, remember that you should be realistic about which of these methods will work for you – and help you to get the most out of the next chapter of your life.

About the author:

Liam Johnson is a digital consultant with several years’ experience creating content for a range of different companies worldwide. He majored in creative writing in university and is always eager to expand his knowledge around different subjects.

​Today's post is from guest blogger, Rick Pendykoski - on why choosing a frugal lifestyle has many benefits.

You have always been the person who has saved up for retirement. And now that you are retiring it feels like you are the only person in the whole world who feels hapless about money matters right?

Studies have shown that a fair majority of seniors have the same fear. Senior citizens worry that their money will run out, and they will have no means to supplement income during their retirement.

So how can you ensure that your lifetime of savings last you throughout your retirement and also take care of your medical bills?

The answer is simple: frugal living.

It all comes down to that old adage of “Simple living, high thinking.”

The first thing that you should do to ensure that your savings stay in place during your retirement is invest in your 401k and IRA long before you decide to quit your job and move to Florida. Here is a handy tip, if you are regularly saving up your income for both the accounts, contribute to the 401k first.

Here are a few tips on living frugally. Remember none of these options are cheap living; they are just living cheaply... Start with cost-cutting as you make these little changes to your lifestyle:

Home maintenance:
Since more than half of a person’s income is spent on house maintenance, it might make sense to downsize to a smaller house. This will also give you an opportunity to earn money by selling household items that you might not need anymore. But plan carefully if you are moving, because moving can prove to be just as costly as house maintenance. Also, it is important to make sure that your chosen area has the infrastructure and facilities that you might need. It would be preferable to move to an area with a grocery store, hospital, park, and public transport in close proximity.

Try and eat better:
Buy your food in wholesale, and try and cook at home. This will not only cut down your budget by half, but also help you lead a healthy life, because eating home cooked food is much healthier than grabbing a slice of pizza or a burger.

Transport:
Walk or use the public transport. Buying a new ride? Don’t be shy to try the second hand market as there are many good deals available. With the right deal and seller, you can use a second-hand car for more than a decade.

Budgeting:
Make a detailed monthly budget with strict allocations for each area of your life. Try and write down your daily expenses to see if you can stick to your budget.

Holiday Spending:
Make your holiday traditions more meaningful, by spending money on little thoughtful gifts or making them at home instead of buying from the store.

Other than these usual conventional ways of cost cutting, here are a few completely out of the box ideas that you can try to shake off the boredom from your retirement and completely change your life. You and your spouse can try these frugal lifestyles and finally live out your dream of adventures by trying these options:

• Have you considered living on a sailboat? Trade in your apartment for a sea-friendly floating house. 
  How many times have you wanted to sail away into the horizon? Now that you are retired and so is your spouse, you can actually do it and take your house with you!
• Live in an RV: Pick up and pack up as soon as the new neighbor starts to annoy you!
• Fulfill your holiday dream: move abroad to a cheaper country: Many countries with cheaper currency are becoming a hotbed for foreign retired folks. Welcome to the land of great weather and cheaper rent. There’s India, Thailand, and Malaysia to consider.

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With the proper approach to your finances, a happy retirement should not be a problem. If you don’t wish to be among those who can’t afford to retire, you should be investigating all the lifestyles that cost less. Retirement can be fun too, if planned properly. 

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About the author:

Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ. He regularly writes for blogs at MoneyForLunch, Biggerpocket, SocialMediaToday, NuWireInvestor & his own blog for Self Directed Retirement Plans. If you need help and guidance with traditional or alternative investments, email him at rick@sdretirementplans.com or visit www.sdretirementplans.com.

     

     

It's a question that I have been asking myself lately... "How can I retire richer?" Living a frugal lifestyle certainly helps streamline my expenses by spending money only on necessities, as well as things or experiences that bring me joy.

The notion of retiring richer isn't just about having more money, but for me it means having a life that has more meaning and purpose, therefore "richer" in every sense of the word. 

The bigger question would probably be more like... "What can I do now to ensure a stress-free and more rewarding retirement." Here's the steps I've already taken and a few others I intend to accomplish.
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PAY OFF DEBTS
Many people (young and old), have unfortunately racked up a lot of debt. I've tackled this problem by paying off credit card balances every month. My car has been paid off a long time ago and I don't have a student loan. My biggest debt is my mortgage, to help pay this off a little sooner - I pay extra towards the principal every month. Besides having debt, there are 5 other money wasters you will want to avoid.

EAT RIGHT, STAY ACTIVE
I'm not suggesting a boring diet. I'm also not suggesting doing a rigorous work out regimen. I love to eat but I've found that as I get older, I can't eat everything and not gain weight. So what I've been doing is to make sure I eat good tasting quality foods vs. processed or fast food. I've never liked exercise, so I'm not going to start now! I do walk everyday and I'm active around the house, by doing house work or re-decorating some rooms. By eating right and staying active, I'm continuing my healthy habits so that I have a long, rich life. 

PURGE, DOWNSIZE, SELL
Like many people, I've accumulated a lot of stuff. I do a periodic "de-cluttering" of my entire house. I've been doing this even before I've heard of Marie Kondo.  If I haven't used or worn something or I just don't like it anymore... I either donate it or sell it. I've made a nice sum of money by selling stuff on apps such as Letgo, OfferUp, etc or at our yard sales. Some empty nesters might want to consider downsizing to a smaller home that cost less and has lower maintenance. If something (or someone) doesn't have purpose or "spark joy"... let it go! 

AUTOMATIC SAVINGS
Having a savings account for emergencies is always a good idea. I didn't always subscribe to this notion. But after being laid off twice, I've learned to always save for a rainy day! To ensure that I set aside money towards savings... I set up a monthly recurring transfer from my checking account to a dedicated savings account. For extra incentive, you can nickname the account... Caribbean Trip, Vacation Home, etc..

INVEST FOR PASSIVE INCOME
I am expecting to receive Social Security benefits as well as a pension once I reach full retirement age. However, I don't want to rely solely on them to live a carefree retirement. I plan to invest in another property, which can then be rented out for a steady income for years to come. I'm also going to continue to convert my Traditional IRA to a Roth IRA - which will be tax free once I start taking withdrawals. By doing so, I am ensuring that I will have money coming in addition to my retirement benefits.

VOLUNTEER OR WORK PART-TIME
If you didn't need to have a "job" today, what would you do with your time? I love animals, especially dogs, bulldogs in particular. Find your passion and do some research to see if there's a good volunteer match or part time gig for you. I did exactly that - I did my research and now I get paid to foster a rescue dog through a local rescue organization. My foster dog is, you guessed it - a bulldog!

TRAVEL, TRAVEL, TRAVEL
One of my passions is to see as much of this great big world. Start by planning that dream trip with a budget. Check out my travel tips for more frugal ideas. The experiences with each country's culture are truly rewarding and enriches ones life. All of the vacations I've taken were well worth it, because the memories from every single one of them are priceless. Who knows, maybe I'll invest and retire in one of our travel destinations!

DO WHAT MAKES YOUR HEART SING
This is probably the most important tip... if you only surround yourself with people you like & love and if you only do the things you want to do and are having fun in the process, then your life will truly be richer!