Ways To Reduce Your Housing Costs In Retirement
Maintaining a house is one of the biggest retirement expense. When you retire, you want to be free of all unnecessary costs or spending and this cannot be achieved by owning a house with lots of management to do. Here are some ways for you to pay less on housing after you retire.
#1. Pay off your mortgage
Having a mortgage to pay off in retirement is the largest bill you probably have to pay. Insurance, maintenance and taxes are little bills as compared to a mortgage. Paying it off will increase your savings and also makes it easier to pay off all other costs. In addition, you can sell of your stuff lying around gathering dust in your garage or yard to help pay off your mortgage.
Getting a smaller house when all the kids are grown up may be a good idea. A big house takes a lot of time, money and energy to maintain, and you may find it difficult to control as a retired individual. A smaller house though can be easy to maintain and costs less. Moreover getting a smaller house will give another person the responsibility of running your big house, which pulls a lot of weight off your shoulder.
Living in a high cost environment reflects a lot on your personality and lifestyle. You might have lived in such an area because of your job, to be closer to your kids’ school etc but you may find it worthwhile to relocate to a cheaper neighborhood once you retire to help reduce your cost of living. You can find a weather friendly and comfortable walk- friendly town where you can settle peacefully.
#4. Become a renter
Selling your house and renting a smaller one makes more cash available for you to settle other aspects of your life. You might find a place in a country or city of your choice but the problem of renting some place else is that you might have to move again depending on the plans of the landlord, and as a retired individual, you don’t want to go through that stress. To avoid this situation though, you can rent some rooms in your house to other people. Especially for those that a spouse has passed away and live alone, this can be a good idea because you will get to have company instead of living all alone.
#5. Move in with your children
A thoughtful arrangement with your kids or relatives could reduce cost on both families. As a retired person, you will get to enjoy quality time with your grandchildren. If you get to live peacefully with your kids or relative, one gets to have eldercare. On the other hand you can also help out with the kids when there parents are not around, so in this way both sides benefit from each other.
Most people don’t want to reach the age of retirement because they have not fully planned for retirement life. This can be an overwhelming situation and not everyone gets to take control of this. Some retired people have to live in retirement homes because they have no family to take care of them or in most cases cannot take care of there house expenses in retirement. Therefore before retiring, it is important ensure that you done everything within your power to reduce your cost of living.