Living in retirement is certainly an adjustment. It can take time to get into a new routine of managing housing, creating a budget, and figuring out changing healthcare needs along with how you’ll spend your time post-career.
One of the biggest changes retirees face is living off a fixed monthly income. This income might be made up of withdrawals from a pension or other retirement fund, as well as social security or other resources.
How do you save money after retirement? Are there any tips or tricks for living on a fixed income? Of course! Here are our top seven tips for living on a fixed income – comfortably and with confidence!
1. Budget
Knowing what you’re spending is crucial for any financially savvy person! Retirement-age or not, having a budget will help you understand where your monthly income is going.
It also is helpful for planning ahead – if you want to take a trip or a cruise, putting aside a little of your income each month is a great way to ensure you’re not living beyond your means while still accomplishing your goals and dreams. Make sure your budget includes line items for dining out, hobbies, gifts… all the things you enjoy!
Pro tip: if you’re not in retirement yet, try tracking your purchases for a few weeks. This will help you figure out your spending habits ahead of time!
2. Examine Any Debt
Living on a fixed income? Try to get as debt free as possible! Now is not the time for larger purchases, so try to avoid them if you can and save for any upcoming expenses with your budget.
Of course, emergencies happen. If you need a new air conditioner or another large purchase, look for 0% financing options and do your best to pay off the debt before you incur any interest.
3. Consider a Side Gig
If you find your fixed income a little tight, don’t worry! There are so many ways for seniors to make a little extra these days.
Maybe you enjoy walking and you wouldn’t mind walking a dog or two, or perhaps you could be a crosswalk guard for a local school a few hours a week.
Do you enjoy playing piano? Consider giving a few lessons! Getting creative can help you find more freedom in retirement!
4. Lower Fixed Expenses
Still driving a family car? Have a home that seems a little spacious for your current needs?
Consider downsizing to save on monthly living expenses. You might be able to lower rent or a mortgage, or pay cash for a more gas efficient vehicle.
Moving can have many different perks including lowering property taxes and heating or air conditioning expenses too.
5. Prioritize Health & Insurance Needs
Staying healthy and active in retirement means you’ll be able to live the life you want.
While Medicare does help with a lot of expenses, there may be things it won’t cover. Because there are so many Medicare program options, it’s important to investigate them thoroughly to find the one that meets your needs and your budget.
Working with a professional like Medicare Dana helps save you time and money! From prescriptions to supplement plans, we’ll work to find plan options that offer the coverage that best meets your lifestyle and health needs.