As a hard-working American, there’s one thing you’ve gotten used to receiving on a regular basis. That is a paycheck. If you’re lucky, your company is also matching a certain percentage of your contributions to your 401k. And if you’re really lucky, your company has a pension plan set up for you. For most Americans, pension plans are a thing of the past and saving for retirement is their sole responsibility.
If you’re nearing retirement, we hope you have enough saved up to give yourself the retirement you’ve always wanted. If your savings are a bit thinner than you planned, then these tips should be very helpful for you. Going from a consistent paycheck to a fixed income is a huge transition but applying these tips can soften the financial blow.
Tip #1: Start a Side Hustle
The idea of starting your own business during retirement is becoming more and more popular. A lot of Boomers don’t find the idea of sitting around the house all day very attractive and are looking for ways to channel their energy. We can see why. Running a business during retirement offers a retiree more freedom to make the choices they want with their money. Instead of being restricted to a fixed income, a business in retirement provides additional income. Owning a business can also open up opportunities and make retirement more interesting. So, if you have a hobby that you’ve always wanted to pursue – go for it! If you don’t want to start your own business, then channeling your skills into a freelance gig is also a great option for retirees.
Tip #2: Rent A Property
You can also take the edge off a fixed income in retirement by renting either a separate property or a bedroom in your house. This is a tip that you can apply today – you don’t have to wait until retirement! A rent payment from a tenant can significantly supplement your retirement savings if you need to play a little catch-up before you take the plunge. Charging most of your house’s mortgage payment to a renter can also give you the freedom to use that money towards the retirement trip of your dreams! Just remember, real estate always comes with risks. Click here to learn more about renting a property.
Tip #3: Budget Travel
If you’re a regular traveler, then you know how easy it is to spend more than you need to if you’re not careful. Being mindful of your expenses when traveling and setting up a trip can save you a good amount of money. Since your income is fixed, it’s important that none of it gets wasted on an unnecessarily expensive plane ticket. When flying, make sure you plan ahead and buy your tickets during the times when you can save the most. Instead of staying in hotels on your trip, opt for an Airbnb instead. These privately-owned properties can be just as nice as a hotel, if not nicer. Another expensive item when traveling is food. You can save a lot of money by eating out only two times a day, instead of restaurant dining for every meal. Grab some groceries for your breakfast or lunch throughout your stay, and only splurge on dinner meals.
Just because your income is fixed in retirement, doesn’t mean you have to sacrifice your lifestyle. We want you to have massive results for all your financial endeavors – contact Ark Financial to learn more today!