5 budget tips for boomers approaching retirement
Baby Boomers are the generation born between 1946 and 1964. This is the generation that attended Woodstock, protested the Vietnam War, danced to disco, grew up watching Happy Days and then settled down to raise families. Now, the generation that was once defined by its youth is embarking on a new adventure: retirement.
37% of Boomers have less than $50,000 saved for retirement:
If you’re a Boomer that’s nearing retirement, you may want to consider ways to cut down on spending and increase the amount of money you’re putting away.
Here are 5 ways you can cut costs and save more money now:
1. Review your monthly expenses. Take a look at your household budget and review it with a fine-toothed comb. You may find you’re spending money on things you don’t really need. For instance, if you’re paying for cable TV, you might be able to negotiate a lower rate with your provider or you can cut the cord in favor of a set-top box like Apple TV or Roku. Creating a leaner budget is a good step towards saving more money.
2. Become a one car household. When you were younger, you and your spouse probably needed two cars for kids’ soccer practice, band recitals and more. As you get older and your life gets simpler, consider switching to one car. Getting rid of one car can lead to big savings. According to NerdWallet, it costs $8,698 each year to own and operate a car. Take mass transit, Uber or other car alternatives, or bike if it’s possible in your area. You will save money on your upkeep, car loan, insurance, gas and more.
3. Downsize your primary residence. Once the nest has emptied, you won’t need quite so many rooms. Consider selling and purchasing a less expensive home. Many Boomers are moving back to the city to cut down on costs and have greater access to entertainment options and other amenities. Moving to a more urban location can even help with aforementioned transportation savings by giving you more access to mass transit.
4. Pay off your debt. Make paying off your credit card, your mortgage and any other sources of debt a priority before you retire. When you are on a fixed income, you want to keep expenses minimal.
5. Boomer discounts. You may feel young at heart, but that doesn’t mean you can’t take advantage of senior discounts. Most restaurants and many other types of businesses offer some kind of senior discount. Don’t be afraid to ask and take advantage.
With these savings tactics, you might be able to make your retirement savings go further. And with the extra money you have, you can go on more adventures and spend your golden years exactly as you always wanted. Finally, it’s never too early (or late) to consult with a financial advisor on the right retirement plan strategy for you and your family.