Handling finances in retirement can be stressful and overwhelming, especially during times of inflation and recession. You might start to worry that your retirement savings and investments might not last you to the end of your life.
Here are a few things you can do if you’re struggling financially in retirement.
Take a Part-Time Job
First, you can take an easy, part-time job that will supply you with some extra income as you’re struggling to manage your finances in retirement. Many part-time jobs don’t require a lot of experience or manual labor that could help you make some extra money on the side.
For example, you could be a dogsitter, an event worker, an Uber driver, a housecleaner, a tutor, a blogger, or a freelancer. If you have any marketable skills, you could set up a small online business. You could even rent your home on Airbnb while you’re away traveling. Working a few hours a day or week could help you to supplement your finances and have some extra room in your budget. Check out these additional ideas forgreat part-time jobs for retirees.
Downsize Your Home
Another way to handle the stress of finances during retirement is to downsize your home. Even though you likely love owning a large home so you can host family members and have a lot of space, owning a large house can be very expensive.
From mortgage payments to utility fees to the cost of regular maintenance, your large home could be draining a lot of your retirement finances. Downsizing your home can greatly help your budget and make your cost of living much more affordable. Smaller homes cost less on utilities and maintenance overall.
Use Your Home’s Equity
Finally, if you can’t manage to have a job and don’t want to downsize or move, you should look intousing your home’s equity to help your retirement finances. Your house could have hundreds of thousands (or perhaps even millions) of dollars in untapped potential and equity. The best way to get the most value out of your home equity is to sell your home, but even if you don’t sell, you can still get cash from your home equity. You can refinance your home or take out a reverse mortgage to use the value of your home to boost your retirement finances.
So, if you’re worried about the state of your retirement budget and finances, remember the tips in this article. You can take a part-time job, downsize your home, or use your home’s equity to have increased income during retirement. This can help you take care of your financial needs while still having flexibility and enjoyment in retirement.
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