Staying fit can benefit your waistline and also bring you more wealth as per the age-old adage ‘Health is Wealth’. Getting fit personally and financially are similar to each other and the calorie that you intake is similar to your spending. The amount of calories that you take in should be less than what you use in order to lose weight. Similarly, you should spend less money than what you make in order to save.
Now you might not feel like a senior but you definitely have to act or look like one. You have to be sure about using your age to your benefit. How are you going to live well on less during your golden years so that you don’t have to borrow money from anyone? Here are a few strategies.
- Do away with your mortgage
One of the best ways in which you can make your retired years more affordable is by doing away with your mortgage as it eliminates a sizable amount from your monthly bill. Though that won’t spare you from the maintenance costs and taxes of your home, yet these costs are a fraction of what you had to pay as your mortgage payments.
- Move to a smaller home
Now that you’re spending your retired life and your children are independent, you will most likely not require a multi-bedroom house in a good place that is near to schools and parks. So, now is the time to downsize to a smaller home in a neighborhood that is less expensive. The money that you save can be added to your nest egg in order to make it grow.
- Sell off your car
If you and your spouse had to commute to different places for work, it is most likely that you both needed a car. But during your retired years, you can certainly live without a car as that could eliminate your insurance payments, maintenance and gas costs. While traveling to the walkable communities, take public transport.
- Curb your taxes
During your retirement, you will have to pay your income taxes when you withdraw funds from your conventional 401(k) account or your IRA. However, you can withdraw money in specific intervals to avert a hefty tax bill in a given year. In case you prepay your income tax on a part of your retirement savings using both Roth 401(k) and Roth IRA, you can avoid paying a bigger tax during retirement.
- Bargain and make use of coupons and benefits
There are numerous age-related discounts that are available for seniors at the local grocery stores and you have to leverage these lucrative discounts. There are not only discount days at the grocery store but it can also reduce prices on matinee movies and dinner in restaurants. Don’t be shy about asking for a senior discount at public places as such discounts are often not advertised. Try to ask for your rights.