The lifestyle you want and the lifestyle your income can support might be two different things. Before you panic, it’s important to realize that there are some simple lifestyle changes you can make that will allow you to live comfortably on your new postretirement income without having to compromise too much on those lifestyle choices that matter most to you.
The main goal when rethinking your lifestyle is to preserve those expenses that really mean something to you and make sacrifices on those that aren’t as important.
For example, if you don’t watch a lot of television then getting rid of cable could be a great way to reduce expenses and it wouldn’t have a negative impact on your lifestyle. If your main goal for retirement is to travel, then rethinking your lifestyle might mean living very simply with few expenses in between trips and finding ways to drastically cut your spending while on the road
It may not seem like it, but you can drastically reduce your spending simply by consistently making small changes to your monthly expenses. Something as small as spending less on groceries can give you enough extra padding to deal with emergencies and help give you a cushion for dealing with inflation. Reducing your monthly expenses by dropping unused memberships, changing your cell phone data plan, and driving less (or carpooling more) are other small adjustments that add up to big savings.
You don’t necessarily have to give up on your lifestyle ideals in order to preserve your income. Sometimes just tweaking the way you indulge is enough. For example, seniors who want to travel in retirement might decide to travel during off-season, to stay in budget inns rather than luxury hotels, or choose home swapping as a way to fulfill their lodging needs.
For some seniors, downsizing their homes is a way to make significant changes to their monthly expenses. Without a house, you even gain the freedom of moving to another city or state that’s less expensive and has a better public transportation solution.
Only you can decide what sacrifices are worth making and which aren’t. When you’re deciding, remember to consider your personal priorities and don’t be afraid to experiment and come up with innovative solutions to adjusting your spending.
I hope you enjoyed the INCOME PRESERVATION SECRETS series and got ideas for new ways to preserve your retirement income. If you know someone who could benefit from the lessons offered in this series, refer them to this site so they can get their own copy. For more retirement planning wisdom, check out our other Special Retirement Bulletin Series: