Now that you aren't working full time, the so called “life of leisure” is upon you. Without all that time spent at work, your lifestyle is going to be considerably different, which has a major effect on your spending habits. Here are some ways to save in retirement in order to keep that extra freedom to live a comfortable life in retirement.
If you're considering moving, you can lower living costs in terms of property taxes, utilities, and food based off your home's location. Areas on the outskirts of large cities or in smaller towns will be cheaper. Also, you can downsize your home to something more manageable. Remember your children are adults and have moved out, that much space may not be needed anymore. While downsizing, get rid of unnecessary items you may have (a garage sale is a good way to make a few quick bucks).
Minimize Your Transportation Costs
Limit yourself to one car. Now that you are retired a single-car can be sufficient to meet your needs as well as your spouses. As you reduce the amount of cars, you can save on gas and insurance.
Find Something Close
In terms of location, choose an area where necessities and convenience work hand in hand. Find a home where minimal transportation is required in terms of visiting family or completing a simple task such as going to the supermarket. Walking will not only save you money but will improve your health!
Take on a Part Time Job
If your day-to-day money is tight, you might want to consider taking on a part time job. There are many options out there for retirees, and employers appreciate the experience you bring. A job can allow for that extra spending money on different luxuries you may desire while still keeping yourself active and occupied.
Discounts, Discounts, Discounts!
Now that you are retired, fancy business attire and costly shopping bills are not necessary. To save in retirement, avoid overly expensive brand names and shop casually. Discounts can be found everywhere so keep an eye out for good deals. Reduce costs in terms for food; shop at a supermarket or at a grocery store with a reputation for having lower prices. Use coupons and pay attention to items that are on special. Note that senior discounts are available at many shopping centers/retail stores, bus and train stations, restaurants and more. Take advantage to what is offered to you as a citizen.
Lower your investment costs. Become more aware of your investments and where your money is being spent. Retirees generally require a lower risk profile in their expenses. Given this, consider switching from managed funds to index funds or ETFs with lower management expenses.
Lee Faraday works at?Wealthprep.ca, a directory of financial advice with personal finance tools, guides, and a searchable database of financial advisors.