Are you retiring soon? Do you need reduce your expenses so you can enjoy a comfortable and stress-free retirement? While retirement is often an exciting event for many people, it can also bring big challenges. For example, you may have considerably less income in retirement, which means you may need to cut back on spending. Or you may wish to use your income on other things, like travel, meaning you may need to reduce everyday expenses. The good news is that with some planning and preparation, you can downsize in a way that still allows you to be comfortable and enjoy retirement. Here are three tips on how you can downsize:
Lose the second car. If you're married, you and your spouse have probably each had your own car for as long as you can remember. If you were both working or if one of you worked while the other stayed home, then it was likely that you each needed your own car. However, now that you're both retired, you may want to ask yourself whether two cars are really necessary. Is it likely that you will both be out running errands or doing other activities separately? Given the amount of free time you each now have, could you stagger those separate activities so you can share one car?
By eliminating a car, you can also eliminate a number of expenses. Those costs include car payments, insurance, gas, and maintenance. That could take a big chunk out of your monthly bills.
Reconsider insurance. You may also have big life insurance premiums that you pay every month. When you're working, life insurance can be an important financial tool, as it can be used by your family to replace your income should you pass away. However, now that you're retired, you likely don't have any income from work. If you're living off of your savings, pension, Social Security, or some combination of the three, consider what would happen to those income sources if you should pass away. If they will pass on to your spouse, think about whether you really need life insurance. Eliminating life insurance could save you a lot of money.
Look at a smaller property. One of the biggest ways to downsize and save is to move into a smaller property. By getting out of your bigger home and into a smaller place, you can reduce your monthly mortgage or rent, taxes, property insurance, maintenance costs, and more. Plus, you may not have to put in the work to keep up with a big yard.
One popular option for retirees is to rent a mobile home, like those at David McDonald Rentals. This is especially a good idea if you want to relocate to a vacation spot or a beach community. Rental mobile homes offer you enough space to be comfortable with affordable payments. Also, much of the yard work and maintenance may be covered under your rental contract.
For more information, look for rental mobile home communities in your desired area. They can give you a tour and help you decide whether a rental mobile home is right for you.