There is a big difference between being frugal and being cheap. A cheap person tries to buy low-cost products without giving any thought on how their decisions can affect their life in the long run. Being frugal means resisting to buy overpriced and expensive items. This mentality is a must if you are planning to live your retirement days in a frugal way.
Here are 5 tips for frugal living in retirement.
1) Maintain an active lifestyle
Most retirees suffer from a sudden in the lifestyle after retirement. A day job keeps you motivated and focused as you wake up early in the morning and spend time with your colleagues. A healthy mind and body will protect you from diseases and ailments that plaque seniors like you. Frugal living in retirement is not that tough. All you need is a bit of discipline to continue to engage in recreational activities.
2) Cook food at home
Grocery stores like Kroger and Whole Foods offer massive discounts on organically grown food items. You will have to buy food ingredients and learn to cook food for successful frugal living in retirement. By eating at home, you spent about 80 percent less than going out or ordering food from a restaurant. But, cooking food will need some effort on your part. So, be prepared to get your hands dirty.
3) Spend your savings wisely
Frugal living in retirement requires you to hire an accountant and let him/her give you a spending limit. Not everyone is capable of managing their finances on their own, there is no shame in hiring a professional; most wealthy people have an accountant or a financial advisor to take care of their money. Moreover, managing your own money can also bring a lot of anxiety and stress, particularly, if you are not well versed with how finances work.
4) Choose an alternative lifestyle
It’s not only the millennials who are opting for a minimalist lifestyle. Thousands of retirees in America are living in their RV’s and campers. An RV life is not only frugal but also filled with adventure and thrill. Another way of frugal living in retirement is to migrate to a country with a low cost of living. Some countries in Southeast Asia welcome foreigners who are in their twilight years.
5) Continue to build assets
You should work to find new ways to invest a certain amount of money in things like stocks, equity, real estate, etc. Being retired does not mean parking your money in CDs and savings account. It’s great to have one or two sources of income supporting your goal of frugal living in retirement.
Frugality should not affect your happiness levels in life. Instead of keeping two cars in your garage, you are choosing to keep one. You are not lowering your standard of living. Frugal living allows you to save more money to spend it on things like vacations, leisure activities and hobbies.