Retirement is a period where work is no longer your responsibility, and you can enjoy life to the fullest. However, it’s also where you need to be careful with how you spend your money. Since you’re no longer a part of the workforce, there’s no monthly income to fall back on. You’re solely reliant on what you’ve saved for retirement. But that doesn’t mean you’re confined to spending as little as possible. You have plenty of opportunities to save money and even procure other sources of income in the process. In this post, we’ll be covering how people can save money during retirement.
Take Advantage of Senior Discounts
Senior discounts are special offers given to those who are aged 50 and up. These are applied at a multitude of stores ranging from apparel to grocery stores. The amount that’s deducted depends on the store’s policy, but when it comes to people in retirement, every cent counts. This is also true if you have a passive income. That said, some places offer seniors a 30 percent discount while others offer 10 or 20 percent, so be sure to research the stores you frequent for more information.
Consider Applying for a HELOC
A HELOC, or home equity line of credit, is a type of loan that’s unique to homeowners. Rather than take out money from a lender, you’re borrowing what you paid off on your house. In fact, HELOCs are very similar to credit cards and not traditional loans. The money you receive depends on how much you’ve paid off on the house. If you’ve been paying off your house long before your retirement, chances are you already have it paid off in full. As such, you’re entitled to how much the house is worth.
To give you some more clarification, let’s say your house is worth $250,000. If your home is paid off, you could borrow up to that amount, depending on the percentage of loan-to-value limits from the lender. This is a fantastic way to get a lump sum of money when you need it. Furthermore, the funds can be used for anything such as home renovations, a well-earned vacation and even funding your child’s college education. The latter will require you to think things through, but it’s perfect to keep your child from facing a financial burden when they graduate.
Be Wary of Scams
Wisdom isn’t the only thing that’s gotten with age; as you’ll also be privy to more scams. Unfortunately, it’s not uncommon for older generations to fall prey to malicious scams and fake investments. Con artists are crafty and can make anything seem like a good financial decision. They primarily use emails and phone calls for phishing. If there’s an email with an offer that’s too good to be true, mark it as spam and delete it. Also, ignore any phone calls from other states and numbers you don’t recognize. You’d be surprised how much money these people have stolen from older adults. Diligence is key when it comes to understanding your retirement options and preventing scams.
Choose Your Investments Wisely
Investing is one of the best ways to make money in a short amount of time. In fact, it’s rather common among retirees. Investing is no longer something only rich people do; anyone can invest their money these days. What’s more is that there are a lot of investments you can choose from. However, don’t let the anticipation cloud your judgement; investing is a risky business. Sure, there are some options that are considered safe, like real estate and the stock market. But there are other investments that are so risky, they’re not worth getting into and should be avoided by newcomers.
Day trading is one of those investments that isn’t exactly worth the time, effort, or money. It works similarly to the stock market and the stocks are incredibly cheap. However, they have no liquidity, which means how it can convert into cash. They also have no security, so they’re very volatile. The choice of which investment works best is ultimately your decision. But it’s best if you go with something, like real estate. It’s easy to get into, has a very high ROI and has the least amount of risk.