Top Tips for Conquering the Rising Costs of Living Before Retirement
Monday, January 15, 2018, 6:00 AM | Leave Comment
You are likely to need about $1.3 million to live comfortably when you retire.
If you were 25, then you would need to save a little over $100 a week to reach that total. Yet, more than 43 percent of America’s population has less than $25,000 in their retirement account.
If you want to retire comfortably, then here are four ideas to help you live frugally now allowing you to save more money for retirement.
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Pay off Credit Cards
Many Americans look at credit cards as an easy way to get what they want now while putting off payments on it until later. Yet, doing this costs people an average of $12 on every $100 they borrow on their cards.
Unless you are experiencing an emergency, then try to severely limit your credit card debt. Try to pay more than the required amount each month so that you can get out from under this debt.
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Save on Utilities
The cost of utilities varies widely across the United States. While some people are lucky only paying about $30 a month others pay over $500 a month on average. You can control your utility costs by turning off lights and the television when not needed.
You can also choose to install solar electricity relying on the sun to provide your electricity. The cost of utilities vary widely across the country, so make sure you are considering this factor if you plan to move soon.
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Consider Transportation
The average cost of a new car is $33,650. Many families send a good share of their monthly income to car companies because they have two or three different vehicles.
Consider using public transportation instead of buying a new car. If a car is a necessity, think about buying used because a new car loses 19 percent of its value during the first year.
Many people also choose to ride bicycles or walk to get where they need to go.
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Eat at Home
It was not too many years ago that consumers chose to eat out only on special occasions. Now, the average American family spends more than $3,750 annually dining out.
Over 72 percent of people regularly eat lunch in a restaurant. There are many simple tasty recipes that can easily be prepared at home allowing consumers to save money.
Additionally, a little pre-planning allows consumers to eat at home almost every night.
As a general rule, Americans are doing a very poor job planning for their retirement. Yet, making these simple changes will allow you to build a comfortable retirement lifestyle. Choose one or more and try it today.
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