Life after active service ought to be fun, you set your schedules, go on long vacations, sleep and relax to your satisfaction, spend more time with your family, spend your savings as you wish, etc. However, after retirement, as you grow older, you will have only a few friends around, few members of the family around, low rate of income (social security/pension scheme) while some depend solely on their savings which means you will have to adjust. You were used to living within a certain higher level of income, you were stronger, but now the income level had become very low compared to when you were still in the active service. You have to adjust to this new life. Now, you may be wondering what you need to do to maintain a standard living at this stage of life. Few essential steps will be highlighted below, which could be beneficial to current retirees to live life within their means and also to prepare the future retirees to make plans ahead.
Change of lifestyle: Living on low income or just your retirement savings only, means you will have to put some restrictions on doing all you wish to do. Retirement is an excellent period to start taking stock of all you have and all your needs, and you will have to rank your requirements in order of priority. Highlight your most important needs, then set the goals and fathom ways of realizing the apex of your preference.
Consider Relocation: your area of residence is very important. If you are very conversant with the real estate news, you will realize that some locations are tending towards the housing bubble status. The cost value of houses exceeds the actual value of the home and the average income value of the location. In such locations, the cost of buying a modest house may be more than the triple of the price of a similar home in another place. You may consider moving to areas with a lower cost of living but where the standard of living isn’t compromised.
Shared Apartment: Owning a house is good but could also be isolating. It’s time to rent out a part of the apartment. Home sharing helps you to generate some incomes, save some expenses on maintenance of the house and consequentially, you will have a companion in the house.
Spend Less: As a retiree, learning how to manage money is an important life skill, to keep you out of running into the embarrassment of debts. Carefully determine the big and small financial expenditures, ranging from the cost of suitable accommodation to the cost of feeding. You have to audit your budget to determine whether there are some regular expenditures you could cut down or avoid.
Save More: There many ways you can cut down your expenses to be able to save some bucks as a retiree, such as taking advantage of the senior citizen discounts on goods at the local grocery store, lower price of dinner. Don’t be shy to always ask for discounts, even when there are no adverts of discounts. Such savings can help with a number of minor emergencies from time to time.
Take part-time jobs: If you can still do some little jobs, take up a part-time job in the area of your expertise. You may consider an online freelance position.