Retirement Tips: Save Money By Moving

This article will give readers an idea on how to save money with downsizing in their retirement years.

Most people save for their retirement all throughout their life. Hopefully, you are one of these people, and have been saving diligently for years and years for this time of your life. Sadly, even people who save as much as they can are not always fully prepared for their retirement years, although they have been saving as much as possible throughout their lifetime. Perhaps your 401k did not do well, or you went through some hard times with a low income, or maybe you went through several years where you did not put anything in your 401k. Although it may be a sacrifice in some ways, there are always ways to get yourself out of a bad spot.

Most people's biggest investment is their house. Albeit, sometimes people go into large debt to own a huge, wonderful house and thus become house poor- but if you can afford the big house and the payments, it can be a decent way to save for retirement; especially if you don't have any descendents that you are planning on giving the house to once you pass on. This is mostly true if you want to go the reverse mortgage route.

However, an option worth considering if you are tight on money in retirement and don't want to take up a reverse mortgage, or if the reverse mortgage is not an option for you, is to think about downsizing in retirement. There is usually no reason for a huge house when you retire. The kids are out of the house, and as you get older, you'll probably want a smaller house (less to clean), and only one floor (don't want to walk up flights of stairs with a broken hip!). Moving to a smaller house just makes sense sometimes. If you do opt to move to a smaller house, you can save the profit that you can make from selling your bigger house and use it to your advantage for your retirement! You can invest it into a short-term investment, or just put it into a liquid savings account for emergencies during retirement. On top of that, you will have lower utility bills with a small house, and you can hold a huge garage sale when you downsize from a huge house to a small house. You can make a lot of money by having a yard sale with all of the things that you have collected over the years, when you had more room in the bigger house. Getting rid of all of this stuff will no doubt make for extra cash that you can use during your retirement, and/or invest for the future.

Also, many older people may feel alone in a huge house, or a huge house that used to have children in it may be too hard emotionally""all of those memories! The house may be too quiet. It may feel different now that the kids are out of the house. It may even make the "empty nest" feeling worse than it has to be. It might be a good idea to move out of the "family with kids" house and move into a "2 person family" house or even an apartment. There are some perks to moving to an apartment, such as not having to do any lawn work (sell that weed-wacker, all your other garden tools and lawn mower, and make some dough!), not having to worry about coming up with money to replace appliances when they die (maintenance does that!!), and of course having a lot of money for retirement that you profited from when you sold your house!

In addition, you will likely save money by not buying as many things to fill up your house. By buying a small house or apartment, you save money not only on utilities and other such bills that can really add up, but you also have less space to put things. You may no longer have an attic to store things. You may no longer have 5 closets to put your collectibles in. Having less space is just an obvious way to save money, because you just can't buy as much anymore when you don't have anywhere to put it.

There's always ways to save money. Even if you were not diligent about saving during your working years, there are ways to maximize your dollars in retirement.

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