Researchers estimate that 10,000 people retire in the United States every month, which means there will be over 120,000 Americans that retire this year. If you are thinking about retiring soon, you may be worried about your income, and whether it will be enough to cover your expenses. More than any other time in your life, you will need to live within your means, because you will not have a way to add income to your budget through overtime or a side gig. If you are worried about living within your means in retirement, we have some suggestions for you.
If you own your home, you may want to investigate a reverse mortgage. Reverse mortgages are a way to add to your liquid funds, either through a monthly check, or from a lump sum check that you can add to your savings or retirement accounts. Not sure how a reverse mortgage works? A reverse mortgage allows you to trade your existing home for cash, without owing a mortgage. Instead, the company will take possession of your home when you can no longer live there. If you are worried about your income in retirement, a reverse mortgage is a great way to make sure that you have enough money to live on through your retirement years. One tip: if you are worried that you will spend all of the lump-sum money immediately, you can opt for the monthly payments, to make sure you continually add to your monthly income.
Reduce Your Expenses
There are other ways to add to your income. You can always add to your monthly income by reducing your expenses. Researchers estimate that most adults have at least five subscription services they no longer use, such as monthly subscription boxes, gym fees, and streaming service fees. Instead of canceling these services yourself, there are apps that will cancel them for you for free. While one subscription by itself may not add up to much, adding up the cost of five subscription services can save you hundreds of dollars every month.
You can look for other ways to reduce expenses. Check on your home and car insurance to see if there are ways you can save. By simply changing your insurance companies, you may be able to save up to 50% of your cost each month. Another area you may also be able to save money is through your phone or internet bill. Changing companies may save you a significant amount of money each month.
Not sure where to start? Did you know there are budgeting apps that can help you trim your budget down to a manageable level? A simple internet search can show you great apps to budget and save your money.
Take Up a Side Gig
Many retirees don’t want to completely stop working right away. If you are one of those people, you may want to find a part-time job or a side gig that will not only keep you busy but help you with your income as well. Rather than work at a boring old job–which may be the reason you retired from your previous job, why not find something you really enjoy? For example, if you love flowers, why not look for a job at a florist or a garden center? This would allow you to enjoy your work and contribute to your income.
One of the best things about side gigs is that you don’t have to work them in person. Instead, you may be able to find a virtual job that you can work in your spare time at your house. Many jobs, especially during the pandemic, allow you to work from anywhere. If you are a writer, editor, tech person, accountant, or data entry specialist, there’s work for you out there. There’s also work on the side for artists and musicians. An internet search should be able to guide you to virtual sites for work. A tip to the wise, never reveal your social security number or pay money to a prospective employer until you are sure the job is legitimate.
Become a Seller
Do you have a lot of junk lying around your home? If you do, your junk may be another person’s treasure. Think about having an estate sale or garage sale to make some extra cash. If you have vintage or antique things that you want to get rid of, you may want to take your treasure to an antique or consignment store. You may be able to add some cash to your bank account simply by cleaning and downsizing all of the stuff in your home.