When we retire, we gain time but lose much of the recurrent income we had while we were in the workforce. Unfortunately, finding a balance between money and freedom is often difficult. However, with a few changes to the way you spend and save, you can squeeze every last drop of enjoyment out of your retirement without having to worry about your bank balance. Here are some tips.
Planning Ahead
If you didn’t do a great deal of planning in your early days, it’s never too late to put protections into place for later. In addition to protection, you can also look ahead to how you’ll spend your money in the coming months and years. Since housing is likely your biggest expense, this is a good place to start your financial planning efforts.
The housing market continues to boom throughout the United States. This means you will likely pay more if you choose to buy a new home, but it also means you may have more equity in your current home than you know. Now’s a great time to discuss your options with a real estate agent. If you’re currently living in a home that’s too large for your needs, you might be able to sell and purchase something smaller outright with the proceeds.
Income Considerations
Sometimes, retirement income (pension, Social Security, etc.) doesn’t afford us the life we want for ourselves. If you’re still able, you might go back to work part-time or lend your skills to others as a freelancer or consultant. You’ll need to pay close attention to how much money you make if you have not reached full retirement age. According to the AARP, you can earn as much as you want once you reach this, which is between 66 and 67 years, depending on when you were born.
If you choose to go the freelance route as a self-employed person, your income only counts on your net proceeds. In this case, it might make sense to file as an LLC, which comes with very little paperwork and potential tax benefits. Your attorney can help you with this process or, if you need to save at the beginning of your entrepreneurship efforts, you can file on your own with a formation service; you’ll need to do extensive research here to ensure that you’re following Missouri guidelines.
Changing Habits
Having a long-term plan and bringing in extra income is a great start. But, if you want to really enjoy your retirement, you may have to change the way you spend money. There are plenty of ways to enjoy a high quality of life without an excessive price tag. Just a few tips here include:
- Enjoy free attractions. The entire state of Missouri is full of possibilities. You could visit something new every day and never run out of something to do.
- Take advantage of senior discounts. As The Senior List explains, there are many grocery stores that offer discounts of five to 15% or more on certain days of the week. Plan your shopping around these days, and don’t be afraid to ask other locations, such as restaurants and retail shops, if they offer deals as well.
- Buy secondhand. Whether it’s clothing, cars, or furniture, buying gently used is a great way to save money while reducing your environmental impact. Goodwill, Craigslist, and Facebook Marketplace are all great options to help you discover discounted goods.
Your retirement years should be full of excitement and relaxation. But, if you find that you can’t afford all of your wants, you may need to look for ways to stretch your dollars and cents further. It all starts with an asset protection plan followed by a few minor tweaks to your behaviors. You may find that you can spend less and enjoy more throughout your entire retirement.
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