For today’s retirees budgets are just as important as nest eggs. Managing your money later in life can be difficult. Habits are in place that you have been practicing for years that may be hard to break, especially if they are not good habits. If you are looking to change your spending and saving habits here are some money management tips that can help you save and help you make the most out of your retirement.
Create an accurate spending record
For at least three months, keep a detailed record of all of your purchases and expenses. Keep track of everything, from your morning cup of Joe to utility bills. Once you have a few months of your spending laid out you can get a good idea of where your money is going. You may easily find ways to cut costs to help save more for your retirement nest egg.
Change your invest strategy
If you’re not investing, start now. If you are investing consider changing your game plan. If you have become too risky with invests, cut back and be more reserved in your decisions. Talk to a invest planner before you make any new investments.
Simplify your lifestyle
By simplifying your life you can reduce your expenses and even your stress levels. Start donating things you no longer have use for. Old clothes, items for hobbies you no longer do, anything you have not used in a year should be considered to be donated. Donating to charity is one of the best ways, or you could try having a garage sale to help raise some money for your retirement fund.
Reconsider your luxuries in life
Do you really need all those cable channels? Do you really need a land line and a mobile phone? How about going out to eat? Could you cut back on eating out and cook more meals at home? Do you really need to get that expensive coffee every morning? Take a look at the luxuries of life and see if there are ways to have those luxuries at a cheaper price. You will be surprised by how much you save if you cut out some of those lavish items and start using the cheaper options.
Drive less, exercise more
If you live in an area that allows you to walk to get your necessities consider walking or biking to your location. Walking to locations that are close to your home is an easy way to get some good exercise. If you do not live close to the grocery store you can still save money on driving. Consider trading in your car for a more fuel efficient car. Another way to save on your car expenses is hang on to your lease a little longer. There really isn’t a need to trade in your car every two years.
Save your savings
It can be tempting once you start growing your savings to spend your savings. Don’t do it. When you are tempted to spend any of your savings think about your retirement years and what you want to accomplish. Keep focused on your goal for your savings.
Collecting Social Security
If you visit the One Reverse Mortgage blog often you may have seen a post in April about the right time to collect Social Security. While many financial advisors are suggesting collecting Social Security as soon as possible, it may be better to wait if you can. While it depends on when you were born, if you delay taking Social Security until age 70, you could receive six to eight percent more for every year you delay.
If you are concerned that your next egg may not be enough for your retirement dreams, a Reverse Mortgage could be the answer to financial concerns. While it is important to manage your money, sometimes things happen with your finances that are beyond your control. One option for you if you are senior or recent retiree 62 years or old, is a reverse mortgage. A reverse mortgage eliminates your current mortgage and if you have any additional equity, you can access that money in tax-free* cash. A reverse mortgage can give you the financial freedom you are looking for with your retirement.
Check out the One Reverse Mortgage calculator now to see how much you can qualify for.
One Reverse Mortgage is the largest reverse mortgage lender in America.
*Please consult with your financial advisor.