You may not have planned to retire until your retirement savings were at half a million or one million dollars. However, circumstances may have led you to retire early; for example, declining health forced you into early retirement. Whatever the reason, you were unable to save as much money as you had hoped. Here are some helpful tips that you can take advantage of so that you do not need to work during your retirement.
1. Reduce your expenditures. Take stock of your lifestyle and consider how you can get by on less. This may include reducing your utility bills, clipping coupons, and cancelling your cable TV subscription.
2. Generate passive income. Many individuals earn passive income by keeping a web blog, doing affiliate marketing, or loaning money via social lending networks. Once the initial setup work is complete, the respective web blog, product site, and loan make money for you constantly.
3. Rent a room in your house. If you own a home, you can rent out a room in your house. Alternately, you can move out of your house, live in a more cost effective apartment, and collect a bigger rent check on your house.
4. Move in with your children. If you have children, you may be able to negotiate living with them in exchange for valuable services, such as babysitting.
5. Move to a cheaper state. Some states, such as Kansas and Oklahoma, have a lower cost of living when compared to New York or California. If possible, consider moving to a cheaper state.
6. Retire abroad. Consider living in a cheaper country such as Thailand, Belize, or Croatia. In many of these countries, retirement income is not taxed (up to a certain amount), health care is affordable, and you can live like a queen on a very meager income.
7. Collect all your earnings. You are obviously aware of your retirement savings and Social Security benefits. However, you might also be able to collect money from your (and your husband’s) life insurance or employer’s pension plan. Make some calls and find out if any money is due to you.
8. Find a financial planner. If you are going to retire on less money than originally planned, then you will need to spend the money that you receive very wisely. A financial planner can find various methods for spending, and saving, the money you receive. It never hurts to obtain a professional opinion about your finances.
9. Invest. Learn how you can invest some of your retirement payouts in stocks, mutual funds, CDs, and the like. Dividends from stocks and interest from funds and CDs can go a long way towards supplementing your retirement income.
10. Stop giving handouts. If you have children or family members who are always destitute and depending on your income to keep them going, stop giving any more handouts. Alternately, require that they provide a service for you in return for that money, such as mowing the lawn or transportation.