As retirees living on a fixed income, the costs of our dwelling consume a significant percentage of our household income, which can be financially devastating for someone in such a position. Unfortunately, the expense of housing will continue to rise as we struggle to keep up with everything that life throws at us.
While we can’t promise to solve all your money problems, the advice we can offer should help you relax a little.
1. May Off the Mortgage
When you consider that the average person spends one-fourth of their salary on housing, it’s easy to see how much money you can save by avoiding making mortgage payments. Despite the fact that you will still be responsible for paying property tax and homeowner’s insurance, you will still realize significant cost reductions.
If you now live in a huge, roomy home that you rarely use (or use only occasionally), it might be time to think about moving into a smaller home in the near future. A real estate agent is able to help you put your property up for sale, find qualified buyers (some of whom might even give more money than you’re asking), and locate a new home for you to move into if you don’t already have one planned out.
3. Consider Roommates
If you don’t want to leave the house and you have quite a bit of unused space, perhaps you’d be interested in having some members of your family move in with you. They can certainly assist with household expenses and general upkeep. However, they can also serve as a companion and caregiver in your time of need.
If you don’t have any relatives who are willing or able to live with you (or take you in), you may want to think about sharing a space with someone else. It is a wonderful option to stay in your house without having to worry about money if you rent one of your bedrooms to someone around your age range who also enjoys similar hobbies.
4. Relocate to a Retiree-Friendly State
You can reduce your home expenses by moving to an area that’s more affordable that also offers tax breaks. If you don’t currently call one of those states home, relocating there will come with its own set of expenses. However, if you weigh those against the cost of living where you are now, you may decide it’s time to make the change.
5. Retire Abroad
If you’ve always wanted to see the world but never had the chance, now is your chance. You don’t have to report to anyone, and you can come and go as you like. If you sell your house, you’ll have a sizable chunk of money that can be put toward seeing the world. You are free to settle down wherever you wish (so long as you follow the appropriate procedures). If you’d rather not sell your house, you can have a property management firm handle renting it out or turning it into an Airbnb.
The modern retiree faces a daunting challenge: figuring out how to maintain a good standard of living on a fixed income. With these suggestions in mind, you can get things moving in the right direction. If you need some guidance, you should seek it out from your loved ones or from other retirees. Ultimately, you need to make a decision that benefits you.