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When saving for retirement, every little bit helps. For those looking to retire, or are already retired, it’s important to understand the little ways you’re hurting yourself when trying to save and retain money. You have a fixed income, and that income usually doesn’t allow for much wiggle room off your budget, unless you’ve prepared well. With unexpected costs, like medical bills, it’s hard to imagine exactly what’s needed for the retirement you wish to plan for. This is why saving every little bit helps, and in order to do so, you should be aware of the certain things that as a person in retirement or planning for it shouldn’t be buying or spending money on.
Supporting Your Capable Adult Children
You always wish the best for your children and want to be able to support them in hard times, but if you’re supporting them long term then you might be hurting your retirement more than you think. If your adult children are fit and able to work and support themselves, then it’s important that you let them do so. That money you spend on supporting them cuts deep into your retirement funds.
Spending More Than You Need
Splurging here and there is one thing, but if you’re spending more money on things that you could spend less on, you should consider how to reduce your costs. Senior discounts exist for a reason, and anywhere you go you should be looking for those myriad discounts. Like we said before, every little bit helps. For those who may feel ashamed or uncomfortable admitting that they’re a senior, just remember that in doing so it costs you.
Keeping an Oversized House
In a lot of situations, seniors are living in spaces that are bigger than what’s necessary. While it may be hard to sell the house you’ve raised a family in, doing so can help reduce your monthly costs. The house might have once held an entire family, but if your children are all grown up and moved-out, it’s time to consider moving into a smaller space more suitable.
Maintaining Unwanted Assets
Like your house, other assets might take up a bigger chunk of your possible retirement fund than you might think. Cars are a big asset, but also cost in maintenance. One asset that many seniors don’t realize they have that they can sell is an unwanted or unneeded insurance policy. For many seniors, maintaining the policy and paying the premiums becomes a burden or unnecessary. If you’re in a similar scenario, consider selling your policy in a life settlement. Life settlements are transactions in which a life insurance policy owner sells the policy to a second party buyer in exchange for a larger upfront sum of money than they would receive if they forfeited or surrendered the policy. This is a great way of largely increasing your funds without having to change your lifestyle.
If you’re interested in selling your life insurance policy through a life settlement, check out our Qualification Calculator to see if you qualify today!