Saving Money at Home for Retirement

by on May 15, 2017

Retirement phase is one of the most difficult phases in a man’s life. Many people retire without a proper plan of their next step in life and end up spending their retirement benefits within a few months or years. A retiree is already weary and is not as productive as the young generation. Although some retirees may take another job on the side, most of them prefer to stay at home and enjoy their retirement benefits with their families. It is important for a retiree to note that he has to plan his finances wisely as there is no longer a monthly salary. As much as you may cut many expenses after retiring, there are others, like health care, which are inevitable at that age. How you plan your finances plays a big role in your health.

Face reality
The retirement phase is an emotional one as some retirees have no idea of their next move, despite having adequate time to plan their retirement. One thing which is evident after retirement is the reduction in a steady income from your employer. As such, you should be able to cut your expenses and bills significantly. Living with your family in a rented house in the city may not be a good idea. After receiving your retirement benefits, you should consider purchasing or putting up a residential house out of town. Although the initial cost may be much, you will be able to cut on the rent that you were paying and channel it to viable projects.

Medical insurance
One of the most factors to consider after retirement is to ensure that you have a valid insurance plan. As you grow older, the severity of chronic diseases, like diabetes, becomes a big concern. Hospital bills have rendered many retirees bankrupt, but with a working insurance plan, the pain of having to pay from your pocket is considerably reduced. A retiree is in a vulnerable phase of life healthwise and any medical condition is likely to happen. It is only wise to realise this and be prepared for it, rather than being sorry for not anticipating it.

Saving on subscriptions
After retirement, you may consider cutting on your TV and broadband services but does not mean you will be losing out, as there are some really good deals around if you do your homework by researching and comparing the marketplace to get one that suits your lifestyle. One of the best places to check out the deals is Broadband Choices comparison site that can help you in choosing the best plan that suits your needs, yet saving you money.  You can even find good deals with top end providers e.g. BT Broadband and Virgin so you know exactly which one works for you.

Expense counting
The excitement of receiving your retirement benefits can lead you into spending on things and activities that you avoided before. One of the major expenses that you should avoid is eating out in expensive hotels often. Retiring should not be viewed as expiring where you spend your money on expensive foods and drinks without having a proper plan of the coming years. Top cut on these expenses, ensure that you eat from your home, while you avoid spending too much of your money in drinking expensive liquor.

Being present-minded
Parents and grandparents have a general heart of giving and lending to their children and grandchildren. They feel obliged to share their retirement benefits with their immediate family members. This notion should not cross your mind after retiring. You should be conscious of how much you spend on your family members in form of gifts. Instead of taking your children and grandchildren to expensive private schools, you may consider enrolling them in a good government school.

Set achievable goals
Retirement is the phase when you should let your money work for you. You ought to set achievable goals and stick to them. A financial advisor is a best-positioned person to give you feasible ideas that can let you invest and have another source of constant income. The kind of investment you get into should be understandable to you and can be carried with little or no help. One of the best investments that you should consider is government bonds. Depending on the amount at hand, you can be in a position to create a constant income with no physical effort from bonds.

Car bargain
After housing, cars are one of the main expenses that can see a great reduction in your financial benefits. The operation costs which include fuel, insurance and repairs will only lead to more expenses as the car depreciates in value. After retirement, you may consider reducing your number of cars to one to cut on the operation cost. In some cases, a retiree may opt to rent a car for long trips, rather than using your own so as to cut on repair costs brought about by wear and tear.

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