Retirement is a time one should enjoy doing what they want to do, always being aware of their spending. Because most retirees have a set income, retirement requires a more ‘savvy’ approach to managing the way money is spent. Some ideas to implement prior to and during your early retirement years can save you thousands during your retirement years:
Downsize to One Car. Spending less on car insurance, maintenance, and gas adds up quickly. Paying off your car or paying cash for replacing a car instead of financing is another way to save additional money.
Eat at Home. Although the temptation may be to eat out daily, the health benefits and food cost savings of not spending on restaurant food, compared to eating at home are significant. Eating fresh foods such as fruits, vegetables, and lean meats as much as possible can help prevent health issues down the road. Save dining out as a ‘special occasion’ and be a savvy spender on where you choose to dine.
Eliminate Your Home Phone. If you have a cell phone, consider eliminating your home phone. If your phone is ‘bundled’ as part of your cable package, downsize your cable package. If you’re told that’s not possible to eliminate one service, seek another provider. With all the competition in services, you will find a solution that meets your requirements.
Downsize Your Home. Consider moving to a smaller home which will save you on property taxes, and likely decrease your utility costs as well. If you’re considering a move to another part of the country, investigate what you may spend in retirement on utility costs, home prices, property taxes, food, and medical provider costs before you move.
Plan Tax Strategies. As you spend down your retirement savings, work with a professional tax advisor to plan the best tax strategies for you and your situation. You are in control of the way you choose to deplete your retirement savings, to some degree. Not planning can cost you more in taxes if you don’t understand the best options for depleting assets.
If you would like help on developing a savvy retirement spending budget, contact our Las Vegas Financial Advisory office to have one implemented into your financial plan. For best results, revisit your financial plan yearly at your annual review.