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.
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.
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