How to Thrive in Retirement on a Fixed Income

Retirement means freedom from a full-time job and time to pursue the activities and relationships you love the most. Many retirees enter their golden years on a fixed income and still successfully manage their funds so they can live well. With a bit of tweaking with your finances, you too can thrive in retirement.

Create a Budget

Budgeting is easier since you know how much money comes in each month. First, add up all your income sources to come up with your total income. Next, subtract your fixed expenses, such as rent/mortgage, insurance, car payments, groceries, and utilities, to discover how much discretionary spending remains. Then, budget out how you plan to use this extra money.

Meet With a Financial Planner

A meeting with a financial planner maximizes your retirement money by providing a realistic financial analysis of your funds and creating spending strategies. This professional gives you goals and a roadmap so you can still do the activities you enjoy and live within your budget.

Pay Off Card Card Debt

A recent survey shows 79% of senior adults are in debt, with credit card debt listed as the most common. Paying just the minimum amount due each month usually isn’t enough to cover the interest you accrue. Make a plan to eliminate this debt through a low-interest personal loan, a zero-interest balance transfer to another card, or commit to using your extra monthly funds to pay the cards until you are debt-free.

Downsize to a Smaller Home

Another way to boost your retirement income is to downsize to a smaller home. You may be able to buy a smaller house with cash and eliminate the expense of a mortgage. Plus, maintenance and taxes will be lower to add even more money to your discretionary spending budget line. Selling your home is especially advantageous if you move to an area with a lower cost of living, which allows you to keep more of your home sale profits.

Use Discounts and Coupons

Little savings may not seem like much at the time, but they add up to give you extra cash in retirement. Clip coupons to save money on everyday items and shop on days when stores double those coupons. Search for available senior discounts online to save on travel, restaurant meals, retail stores, and cell phone service.

Start a Freelancing Business

A great way to beef up your bank account is by doing freelance work part-time. Choose a field you’re passionate about and are skilled in, such as writing, interior design, photography, accounting, catering, or consulting. Many jobs can even be done from a home office.

Before you launch your new venture, you need to decide on a business structure. Forming a limited liability company offers you many advantages, including less paperwork, lower taxes, and protection of your personal finances should you face a future legal challenge. Each state has its own LLC regulations, so first, check the rules about forming an LLC in your state before filing. Then, you can file the paperwork yourself or use an online formation service to save on the higher fees typically charged by a lawyer.

Following these tips helps you keep your spending under control in retirement and brings in some extra funds to boost your bank account. That allows you to relax and enjoy your golden years.

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