How to Stretch Your Retirement Fund

31-10-2018 | dojo |

How to Stretch Your Retirement Fund

As soon as you start earning money, even if very young, you should start your retirement planning and creating a proper retirement fund. There are multiple strategies to save for retirement and chances are you’ll put most of them into practice for your golden years.

And now you are retired.

Are you pleased with your retirement fund?

Do you think your money will last you all the retirement? Are you foreseeing any new retirement expenses you didn’t account for?

Whatever your retirement fund status now, there are ways you can still make the most out of your money.

Here are few tricks to stretch your retirement fund:

Downsize

One of the biggest expenses we have in our lives is related to our house. Even if you paid off your mortgage off years ago, a posh home location will cost you a lot: taxes, utilities, repairs etc.

What if I told you there are places in this world that are amazingly beautiful and less expensive to live in?

If you don’t mind switching countries, you can easily find a paradise location and live there for a fraction of the costs you incur in the US. Even better … you can rent your house in the US and use the money you earn like this to live in the new country.

In many such places your rent alone could easily cover for rent, utilities, food and even some traveling.

If you don’t like the idea of going outside the US, there are less expensive states to live in. Just look around and find the best location for you.

Do you have too many empty rooms in your house? You can rent them and earn money, even if you don’t like the idea of moving out of your house.

Understand how much money you do need for your happy retirement

The first step in your retirement planning is to determine how much money you need to retire.

Now that you retired, repeat the calculations and try understand where you can cut some expenses, if your retirement fund is not enough.

You might have some bigger medical bills now, that you are older, but maybe you can cut some costs from shopping and eating out.

Curb your spending

There are people who, even when living off a more fixed income than before, still tend to overspend. It’s true all the media outlets try to manipulate us to spend recklessly, but we should keep a closer look on our spending habits.

Maybe you don’t need new outfits every season, maybe you can do some of the home repairs yourself (you have more time now, than when you used to work), maybe you can drive your car few more years, if it’s still in great condition.

Don’t take on expensive hobbies

We all see those ads with older people who buy yachts and take golfing seriously. If you really love these hobbies, there are ways to spend less than others, but, if you just want to look cool, maybe you should stay away.

Spending a lot of money to buy a boat and use it maybe few days in a year’s time or spending a fortune to be a member of a country club might look enticing, but they’ll deplete your retirement savings in an instant.

Of course, if you have a huge retirement fund, then by all means enjoy.

Wait a little longer to collect your benefits

You’ll start receiving Social Security benefits at 62, the earliest. If you can wait for few more years though (say 70), this means you can get almost double every month.

It’s not easy to wait for few more years, but this can boost your retirement funds and allow you to live comfortable from your nest egg.

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