There are a lot of people in Australia with significant savings who fear that they’ll go broke when they do retire. The reality is that there are a lot of ways to live frugally to try to keep that from happening.
Take note that frugality here doesn’t mean shying away from things that make you happy – like watching live sports, going on a short vacation, doing a little shopping spree here and there, etc. We’ll talk about spending practicality so you can do what you want as you grow older.
The first step is to develop a budget and then start getting serious about where you can trim expenses, financial experts say. Within the plan you have, you should build a budget and an investment strategy that will meet your tolerance for risk.
Start this by creating a monthly budget. Take a hard look at your current spending and assess out your cash flow. Ensure to include both annual and semi-annual expenses such as real estate taxes, insurance premiums, income taxes and others. There’s a lot of good computer and mobile programs that can help you create a monthly budget and track it.
Here are some good ideas to live more frugally in retirement:
Check your living situation. According to research, both the cost of home and home-related expenses account for approximately 43% of spending for those who are 65 to 74. Therefore, to save money, you may consider downsizing your home because square footage can put pressure on the budget, plus a garden or empty plot can be less stressful to maintain. Downsizing also gives you a chance to earn money by selling household items you no longer user or need.
Consider retirement a retirement village. To a wise senior, a retirement village can be the best financial and life choice available. Not only does it offer better opportunities and advantages you can only hope to have when living alone.
If you are thinking of this move and are looking for retirement villages in Victoria or other cities, your first destination should be search engines – the internet. If possible, visit the location you are considering to see just to know if it will feel right. Ensure that you’re going to be comfortable staying there. You want to go home to your new place and say, “I’m really glad I made this choice. This feels right”.
Quick ways to save money in retirement
Hunt for special discounts and freebies. Many restaurants, hotels, drugstores, and auto-repair services offer senior discounts and deals. Take note that the starting age for these discounts varies between companies. Also, understand that just because a business provides a special deal doesn’t instantly mean it’s a good company — you still need to do your research. One quick way to do this is to check the reviews.
Remove fat from your diet. It’s easier to eat economically in retirement if you choose to make more of your meals at home, and this is the stage of life when many people do just that. Eating home meal costs about a third of what it will cost you to buy the same food at a typical restaurant.
Be a smart shopper. Hunt for food deals everywhere you go. This includes supercentres, wholesale clubs, dollar stores, and farmer’s markets. Look for coupons in the store as well as online.
There you have it. Of course, there are many other money-saving tips you can use that aren’t in this article. The takeaway is that you know some of the ways so you can start living frugally in this stage or that you now know what to do as you approach senior years. Happy living!