CNN Money lists five ways to cut retirement costs as follows:
1. Downsize your living space
2. Give up a vehicle
3. Enroll in Medicare on time
4. Dine at home
5. Lower your tax bill
Here's where I stand on each of these:
- We haven't downsized yet since our kids are still at home, but we could one day. Being able to sell our home and move to a smaller place is one way we've built a margin of safety. into our retirement.
- I think we will go down to one vehicle sometime in the future. We walk to so many places and hardly ever go in opposite directions, so why do we each need a car?
- I have some years left before I need to consider Medicare. ;)
- We eat at home as much as we ever did -- which is a lot. I've gotten fairly good on the grill and my wife makes great things that are healthy and cost-effective, so why do we need to go out several times a week? The answer: we don't.
- Taxes go down dramatically in retirement especially if you were a high earned-income generator. I've certainly been enjoying that!
Any of you who are retired taken action on any of these?
Giving up the vehicle is definitely a great tip. Since I got a car I have a lot more freedom, but damn, they are money buckets! The bills increased my cost of living by like 15% (not including repairs etc).
Good tips. Many thanks!
Posted by: Jack the Investor | August 29, 2017 at 10:28 AM
We're also planning to cut retirement costs by paying off our mortgage before FIRE. I know the community is torn on this, but we like having the peace of mind. The stock market may fluctuate, but at least we'll own the roof over our heads if things go south.
Posted by: Mrs. Picky Pincher | August 30, 2017 at 09:09 AM
Another thing to consider is to shop your Home and Auto Insurance around. Many people stay with one company for a number of years, however all the insurers are looking for business and are aggressively trying to get people to switch by lowering costs.
Posted by: Michael | August 30, 2017 at 05:03 PM
Hello, I just found the site again and missed the boat on getting the new site name. If you are still giving that out, I'd love to have it! Thanks.
Posted by: jclimber99 | September 01, 2017 at 03:34 PM
Hello
Not only will cooking at home save you money, It can be a fun time. This weekend my Son brought his family over and we all cooked together, even the grandkids helped out cleaning corn.
Posted by: Bonnie Ferrero | September 08, 2017 at 08:00 PM
Hi, I too, would also like the name of your new site. Thanks!
Posted by: Lisa | September 10, 2017 at 04:07 PM