If you’re over 50, it can be tempting to put your money into savings and call it a day. However, this isn’t the best way to get the most out of your life experience and your hard-earned cash. If you’re interested in saving money after 50, consider using these innovative and easy ways to do so!
Delay Drawing Social Security
Social Security is a hot topic as baby boomers enter retirement with good reason. Social Security is one of few guaranteed income sources in retirement, so it’s essential to your financial security plan. However, your Social Security benefit isn’t fixed and can be adjusted to maximize lifetime benefits. Delaying Social Security can increase monthly payments for people who retire at older ages or for those who continue working after reaching their full retirement age (66 for most people). If you delay drawing Social Security until 70—the earliest possible age—you could receive 76% more per month than if you had claimed at 66.
Consider a Reverse Mortgage
If you’re thinking about a reverse mortgage, you aren’t alone. Reverse mortgages are currently one of the fastest-growing forms of home financing in America, and there are some reasons why so many people choose to take out these loans. It works simply because instead of having to pay back your loan when you die, your heirs can sell off your house or condo and then use that money to pay off what they owe. A reverse mortgage is a desirable option for most people over 60 who live on a fixed income and need some extra cash flow.
Yes, moving from a large suburban home to a smaller apartment home will help you save money on housing costs. That’s because homeownership involves so much more than just paying a mortgage. There are property taxes, insurance, and upkeep expenses (lawn care, painting, carpentry repairs) that can add up to hundreds—if not thousands—of dollars annually in addition to your mortgage payment. You don’t have any of those ongoing costs when you’re renting instead of buying, which gives you more wiggle room for other expenses like travel or hobbies. Once your kids move out, it makes even more sense to look into downsizing; they’re probably getting ready to leave anyway!
Trim Your Lifestyle and Spending
When your paycheck shrinks and you are faced with decades more of fixed costs, it becomes crucial to trim your lifestyle and spending. The first step is realizing that you can’t save by spending less on life’s more minor pleasures. Whether eating out, shopping, or going to a bar, stop thinking that these are your only ways to blow off steam. Go volunteer somewhere instead, whether at a soup kitchen or through a local community event, and watch how much more you enjoy life.