Knowing how to manage your budget correctly becomes a necessity once you retire. The better you can stretch the money you are getting from your nest egg and benefits, the more comfortable your life will be. Some people, unfortunately, never really learn how to manage money and find themselves struggling at first. But it’s never too late to turn things around. Let’s take a look at how you can keep your costs as low as possible as a retiree.
Look for Alternative Retirement Home Living Arrangements
If you are planning to go to a retirement home and you have a tight budget, then you will have to consider alternative living arrangements. Most retirement homes and assisted living facilities allow you to share a room with someone else. If this is something you would feel comfortable with, this could greatly cut your monthly bills and allow you to breathe better.
There are plenty of other things that you can do to reduce the costs of a retirement home or assisted living, like using state-sponsored waiver programs or using veteran benefits if you were in the army. If you want to learn more tactics you can use, check out this page on financial planning for assisted living for seniors.
Rent a Room in Your House
If you plan on staying home, then you could add to your monthly revenue by renting a room in your apartment or house. You could even do some Airbnb rentals, whether you own the property or not. This is what’s referred to as rent arbitrage and it is legal as long as it’s permitted in your lease and short-term rentals are allowed where you live.
If you want something more stable, look around you and see if a friend, relative, or someone close to your family needs somewhere to stay. Or you could put an ad out for a roommate. There are plenty of people looking for rooms and you’ll get to pick someone who’s a perfect fit for you.
Get Your AARP Membership
If you don’t have an AARP membership yet, you need to right away. The membership fee is only $16 per year, and this is ridiculously low when considering all the benefits you’ll be getting. You’ll instantly get discounts from hundreds of retailers and service providers and will be able to save on everything from food, to travel, to car insurance. So, look at all the benefits they have to offer and consider signing up right now.
Downsize Everything
If you feel like you can downsize in certain areas, do it. Now would be a good time to consider selling the family home if there’s a lot of spare space. You could move to a smaller apartment and live mortgage free for the rest of your life. If you have a big car or more than one, consider selling the ones you don’t need and switch from your current car to a more economic model.
These are all ways retirees can keep their living costs low. It all starts with having a solid financial education, so learn about the basics of money management first and foremost and build on them.
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