Once you retire, it’s likely you’ll have to live on a fixed income. You’ve spent your life saving up, but that money needs to last as long as possible.
Finding ways to keep your housing costs down can help you stretch out your money.
Move Into a Smaller Home
In retirement, many people choose to move to a smaller home. For many, this makes sense because you just need enough space for you and your spouse. A smaller home is also more manageable to care for.
You don’t want to be weighed down by maintenance when in retirement. Additionally, smaller homes are easier for you to move around in especially if you have health challenges. The financial benefits of living in a small home are only a small part of why you should downsize. You can save money while also creating a better situation for yourself.
Reduce Energy Use
Another great way to save money on housing costs is by changing some of your habits. Every month, you need to pay for all the energy you consume. Adjusting how you use energy can save you a great deal of money. Window blinds can improve energy efficiency by keeping the sun out. It’ll be easier for your HVAC system to keep your home cool during the summer.
You can also switch to energy-efficient devices. It might be too expensive to change out appliances, but you can easily transition to using energy-efficient light bulbs. These bulbs last longer and shine brighter while using less energy and producing less heat.
Refinance Your Home
As you reach retirement, you may want to look into refinancing your home. When you refinance, you renegotiate the terms of your loan to make things more manageable for you. Refinancing allows you to reduce your monthly payments. This can ease the burden of your monthly bills. However, this typically means you will also be lengthening your loan. If you want, you could even shorten your loan and pay more now so you can get out of debt sooner. There are also options including tapping into your home’s equity or even getting a reverse mortgage.
You want to make smart money decisions when it comes time to enter retirement. Housing costs are often the biggest part of your budget. Finding ways to cut your housing costs down can help you be more financially secure in retirement.
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