Retirement planning starts as soon as we become established in our careers. However, to successfully retire, the reality for many is that they need to rethink how much they’re contributing to this future.
The sad reality is many people enter this phase of life with far less in the bank than they’d hoped. The concept of retiring as a “thousandaire” may sound daunting, but it is entirely possible to live comfortably in your older age. Here are 11 ways to successfully retire as a thousandaire without dramatically changing your lifestyle.
1. Downsize Your Living Situation
While it may seem like a tall order, downsizing to a smaller home may not be as bad as you think. Chances are, there is a lot of wasted space in your current living situation that you can realistically do without.
Lower utility bills, reduced maintenance costs, and fewer property taxes can make a big impact on stretching your retirement funds. Additionally, selling a larger home might provide a cash influx to your current savings.
2. Utilize Senior Discounts
Are you close to retirement? Now’s the time to take advantage of senior discounts wherever possible.
Many businesses offer discounts to those 55 or older on everything from groceries and fine dining to entertainment and even travel. These discounts can help you successfully retire with thousands in the bank when the time comes.
3. Prioritize Health
When you think of saving for retirement, you likely think of cold hard cash. Surprisingly, staying healthy can dramatically increase your retirement funds as well.
By making your health a priority, you’ll be reducing your medical expenses down the line. Regular exercise, a healthy diet, and preventative care can decrease the likelihood of serious health issues and thus lower the cost of medical care.
4. Develop a Budget
Shockingly, nearly half of all Americans do not have any money stocked away for retirement. Do you find yourself in that group? Make changes now!
Create and stick to a budget. Track your expenses, identify areas where you can cut back, and allocate funds toward your retirement. You’ll be thanking yourself in the future.
5. Keep Making Money
Just because you’re retired, doesn’t mean you need to lounge on a beach all day doing nothing. Unless you want to, of course.
If full retirement isn’t financially feasible, consider other ways you can make an income. This could be part-time work, hosting monthly garage sales, dog walking, or any other way you can make side money. This can not only supplement your income but also keep you active and engaged in the community.
6. Maximize Social Security Benefits
Delaying your Social Security benefits can increase your monthly payout. If you can afford to wait beyond the initial eligibility age, your monthly checks will be larger.
Enjoy the financial comfort that comes from strategically waiting. As long as you have room to mess around with the timing of your Social Security, you could maximize its impact on your retirement lifestyle.
7. Invest in Passive Income Sources
Passive income is the best. Checks keep coming in, and you only have to do the hard work initially to make it happen.
There are many sources of passive income you can consider. For instance, invest in a rental property or dividend-yielding stocks. Even small investments can grow over time and contribute to your ability to successfully retire in the future.
8. Cut Unnecessary Expenses
Take an honest look at your finances. In all likelihood, there are expenses that you can cut now.
Subscriptions, memberships, and daily Starbucks runs aren’t helping you save money. Reducing non-essential spending is a key step in making your savings last, especially when every dollar counts.
9. Manage Debt Wisely
Aim to enter retirement with as little debt as possible, or none if you can swing it. Debt is a silent killer that makes having thousands in savings seem nearly impossible.
If your debt is too substantial, develop a plan to manage and reduce it quickly. Mortgages, car payments, and pesky student loans could be preventing you from retiring peacefully.
10. Give Your Car a Break
Between gas, insurance, and maintenance, car owners could be spending as much as 20% of their income on their vehicles. That’s money that could be used in retirement.
To cut down costs, use public transportation or car-sharing services whenever possible. You can also walk or ride your bike, getting where you need to go and exercising at the same time.
11. Seek Financial Advice
When in doubt, you can always ask for help. Consulting with a financial advisor can help you make the most of your financial situation.
Financial advisors are pros when it comes to being able to successfully retire. They can offer guidance tailored to your specific needs, and ultimately, help you retire with thousands in the bank.
Happy Retirement
Retiring as a thousandaire is within your reach. You just need to start thinking about how to successfully retire right now, whether you’re in your 20s or a few short years away from the big “R.”
By implementing these strategies, you’ll start seeing more funds in your retirement savings each month. Embrace the challenge, and before long, you’ll be sitting on a beach with a drink in your hand, living it up in retirement!
Read More:
The New Retirement Age: 12 Reasons Baby Boomers Are Working After 70
10 Best Places for Boomers to Retire
Alyssa Serio has been a writer and editor since graduating from Aurora University in 2014. In her free time, she loves reading, playing volleyball, and watching any horror movie (even the bad ones) with her husband.