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Tips for Seniors on Making the Most of a Limited Income
One day, you’re working and bringing in a steady paycheck. Then next, you’re tapping into savings to pay the mortgage. While this is a downside of retirement, there are actually many great benefits you can explore. And if you can take the time to evaluate your finances now, you can enjoy every moment of your freedom without feeling the squeeze of a thinner wallet. Here are some tips to get you started.
A New Lifestyle
Going beyond your big expenses, there are dozens of small ways you can tweak your spending habits to make your money work harder. How much do you spend every week on takeout? Treating the grandkids to their hearts’ desires? Making impulse buys? If you’re honest, probably a lot more of your money flies out the window for these reasons than you might think.
Instead of opening your purse each time you want a gourmet meal or to spend the day with the grandkids, prepare for these urges ahead of time. You might, for example, take a cooking class online. You can learn how to make your favorite meal for a fraction of the cost of eating out.
There is no limit to things you can do without paying each time you want to enjoy yourself. MyKidsTime.com lists dozens of free things to do with kids (post-pandemic, of course!), including making your own home theater and baking. For your own dose of entertainment, you can nix cable and go with a streaming device that only has the TV channels you watch regularly. This will help you save money since there will be no need to pay for premium channels if you don’t want them. By comparing streaming devices online, you can find the right one that suits your TV’s specs and your channel preferences.
There’s also the possibility of pocketing a little extra cash by refinancing your home. When you refinance, you borrow against the equity in your home, so first find out how much your property is worth. If refinancing is doable and makes sense for you, you’ll find that today’s low mortgage rates are ideal for lowering your monthly payments.
Save on Your Health
As you age, healthcare becomes a larger and larger expense. So one of the best ways to save money in the long run is to take care of your health by staying in shape. While you could opt for a pricey gym membership, it’s easier and cheaper to use Paul Eugene’s Zoom Classes. He will help you stay in shape and preserve your health, all from the comfort of your own home.
A Side Hustle
Even if you have adequate retirement savings, you might find yourself wishing that you could afford to splurge more often. You don’t have to go back to work full-time or even work for an employer to boost your monthly income—instead, consider turning to freelance opportunities. Freelancing is a great way to earn money on your schedule on a part-time basis.
Consider the skills you honed before retirement and put them to use. If you worked as an accountant, you could offer tax services during the first quarter of the year. If you worked as a writer, you could write blog posts. The same applies if you were in advertising, editing, engineering—the list goes on.
If you decide to take on freelance work, you should consider forming a limited liability company (LLC). Having your own LLC will establish what you’re doing as a real business. It will also take away any liability, so you can’t be directly sued, and the debt of the company doesn’t show up on your credit. Once you decide to form an LLC, there are several steps to take. Make sure you check your state’s regulations before getting started.
Making smart decisions about your lifestyle while looking for ways to make a little extra money on the side can help you ensure your golden years are full of fun and free of worry.