Retirement is an exciting time for hard working Americans. After making many career strides and contributions to your community, you’re probably ready for a vacation! Whether you plan to work part-time, or take a permanent vacation from employment and decide to take up a new hobby instead, managing your finances must be part of your retirement plan.
In this article we’re discussing creative saving and money-making tips for retirees beyond their 401k.
Prioritize Your Expenses, Evaluate Your Lifestyle
Following the Great Depression, many Americans demonstrated their success by showcasing material items like fancy cars, big homes, and luxurious goods. In the last five years, this trend has been mostly replaced by a movement to downsize and reduce the need for excess material goods. Many millennials and older Americans alike are adopting the minimalist lifestyle and finding new ways to save money while minimizing their attachment to material items.
This concept is an excellent way for soon-to-be retirees to free up some space and save up for reduced income in retirement. Consider downsizing your home and opt for a smaller space, or even a tiny home. Tiny homes are a low-cost and flexible housing option for retirees that want to maximize their retirement funds. The best part? Tiny homes are super portable, so you can live out your dream of retiring in rural Oregon for the summer, and seek the California sun in the winter time— all in the comfort of your cozy home!
Access Your Funding Fast
As we’ve seen in the past, not every pension plan is perfect. So if you’re in need of fast cash, reverse mortgage lenders allow homeowners to access their home equity and defer the repayment of the loan until they sell, move, or die. This is a great way to gain access to income when you may need it most. Maybe you’re planning your dream trip to Spain, or perhaps you need to pay off medical bills in the event of an emergency. Having access to your home equity capital can give you the peace of mind you need to fully enjoy your retirement without having to worry (too much, anyway) about your finances.
Take a Gap Year
Ready for retirement but don’t have the savings quite yet? Try taking a gap year instead. Just because you don’t have quite enough savings to up-and-leave the workforce doesn’t mean you should deprive yourself of a great adventure. Book a trip abroad or take a cross country roadtrip to exercise your wanderlust and explore! Taking a break from your daily routine and responsibilities is a great way to refresh, and better yet— you’ll come back to work with a whole new perspective.
Capitalize on Your Assets
Turning your assets into cash is easier than ever thanks to applications like Airbnb and OfferUp. If you’re taking a gap year or even going out of town for a short vacation, try renting your home on Airbnb to help support your travel fund. Perhaps you’ve decided to adopt the minimalist lifestyle and have some great furniture to get rid of. After you’ve allowed the kids and grandkids to pick through your collectibles, you may want to use OfferUp to capitalize on your fantastic vintage finds.
Find a Hobby That Pays
Now that you’ve got all of this time on your hands, why not find a hobby that can actually help you pay the bills? Sell your homemade ceramics, watercolor paintings, or lovely knit scarves on Etsy to make a little extra cash to put toward your living expenses or your new craft supplies!
Many retirees work part-time jobs to stay busy and maintain a little extra income to help them get by. Find a job that’s enjoyable so that it’s a treat to come to work, rather than a chore. Love gardening? Check to see if your local nursery is hiring for part-time or even volunteer positions. Are you an expert skier? Your local ski resort may be hiring for ski valet positions that even come with pass benefits. The possibilities are endless if you do your research. Think about your passions and see what opportunities are available so you can make the most out of your retirement years.
Enjoy Your Hard-Earned Vacation
The most important thing to remember as you enter retirement, is to make time to enjoy yourself. After all of your hard work, you deserve to relax. Take a vacation, find a new hobby. However you decide to spend your retirement, be sure to make the most of it and make an effort to plan your finances ahead of time so that you can!
