Retirement isn’t easy for many people out there. It’s very common for retirees to wonder whether or not they’ll make it in retirement. Will their money last them? That’s a valid concern. People are living longer and things are getting more expensive. It’s no surprise that people are worried.
However, if you’re in retirement and you want to drop your expenses today here’s my top 3 ways to do that right now.
1- How many vehicles do you have?
Do you own 2 cars, a truck, 2 boats, 2 motorcycles and an RV? Do you really need all these vehicles? All of this adds up to a lot of expenses each month. First of all, you have to insure them. So even if they’re just sitting there unused they’re costing you money. If you’re not using something then get rid of it!
Not using it isn’t the only reason why you should get rid of it. Do you really need 2 boats? Do you really need 2 motorcycles? How often are you using that boat? Might it be better to get rid of them and then just rent a boat when you want one instead?
The truth is getting rid of this excess is one of the easiest ways to lower your monthly expenses. In certain places of the country you can get by without have any vehicles at all. However, more than likely you’ll want to keep at least one car. But do you each need a car? Can you get away with just having one in the family?
My wife and I have been on a 1 car lifestyle for the past decade or so and we do just fine. We do great actually. This obviously may not work for certain couples that each need their cars to get to work or to go to certain places, but in retirement you might be able to get away with just 1 good car.
If you can’t get away with just one car, then can you instead get two cars that are cheaper to insure and maintain than the two you currently have? Maybe get rid of that Lexus and buy a Toyota instead. These expenses add up, and every little bit will help in retirement.
2- Do you need all that house?
Your housing will likely be one of your biggest expenses each month. Even if you’re already done paying off the mortgage you can still expect to pay property taxes each year, and have to maintain the house when things break. Things break all the time and they have to be fixed, and sometimes that isn’t in the budget.
A great way to battle this is to downsize to something smaller in retirement. Do you really still need that 5 bedroom house now that all the kids are gone and living on their own? Can you maybe get by with a lot less?
Downsizing will not only save you time when you have to clean the bathrooms, but it will also get you a lower bill when property taxes come around. Insurance should be less for a smaller home too assuming you get one that costs less than the current one you’re in. Don’t be afraid to think about moving as an option to lower your expenses each month.
3- How much do you eat out?
Everybody loves to eat out every now and then, but are you doing it too often? How much are you spending each month on eating out? This is another expense you can control and not lose too much once you get used to it.
Try out new meals together at home and make it a fun thing you do together. Sometimes couples eat out all the time because they hate cooking. If that’s the case then you should try to make it an enjoyable thing you do together. This can be especially effective when you both don’t like cooking. Try and make it fun, and do it together. You might be surprised how much you like it.
Another thing you could do is take turns making meals during the week. If one of you made a meal on Sunday, then the other one could make a meal on Tuesday. If you split it up then the two of you would only have to make one or two meals each week (considering that you make enough for leftovers). You can then choose a day or two each week for eating out. It’s important to eat out every once in awhile so that you keep things interesting and have a “date” every now and then, but if you’re doing it every day of the week then something is wrong.