There are many money-saving moves you should consider in retirement. In fact, it’s a good idea to start planning decades before you actually hit the big 5-0. You might be able to cut expenses in other areas, allowing more money to go toward your savings.
One of the more efficient ways to save for retirement is to work part-time. Many retirees like to stay active, and a part-time job can provide that. Another option is to work for a temp agency. Not only can you earn extra money, but you may also get to take advantage of senior discounts.
Investing in stocks is a smart way to save for retirement. It’s a good idea to diversify your investments and allocate money to different types of stocks. Aside from investing in stocks, you can also invest in bonds. However, it’s best to consult a financial advisor before you make any major investments.
Other retirement saving measures include establishing a budget, taking care of your health, and saving for an emergency fund. Keeping an emergency fund can help you to avoid having to use credit cards when you’re on a budget. Also, you’ll want to be sure to shop around for insurance rates, as they can vary widely.
Another financial move you should make is to consolidate IRAs and 401(k)s into one account. This 5 Money-Saving Moves You Should Consider in Retirement will allow you to keep track of your funds and reduce costs, such as trading fees. If you’re a member of more than one IRA, combining them into one can increase your savings.
The most expensive part of your retirement is probably your healthcare. Medical costs will increase when you’re older, and you’ll need to pay for prescription drugs and nursing home care. But, you can save a bundle if you keep up with your health in your early years. While Medicare can cover your medications, you’ll need to have a comprehensive medical plan.
Another financial move you should make is paying off debt. Debt can add up quickly. By prioritizing debt payments, you can avoid stress and put more money towards your savings. Consult with a credit counselor or bankruptcy attorney before you make a final decision. And remember, once you reach retirement age, you’ll still owe taxes on your retirement income.
As for the most expensive item on your shopping list, buying a new car is not the best investment. If you’re on a tight budget, buy a used car and educate yourself on the ins and outs of investing. Even better, consider ride and car sharing services. Or, you might just want to consider a cheap entertainment option. For instance, watching movies at the park is a fun alternative to going out.
The other money-saving move you should consider in retirement is the use of technology. Using apps to track your expenses can help you save money. Similarly, you could use a meal planner, such as MealBoard, to minimize food waste. Using a smartphone app to manage your expenses and to plan meals can also be a smart financial move.