Good Morning My Cheap Cheetah Family How Are you Today?
Some Suggestion On How To Retire Cheap
1. Move
That’s right. It usually costs more to live in or near big cities or on or
near coastlines. You can save thousands of dollars a year in real estate taxes
and on home and food costs by moving to “middle America,” where the cost of
living is lower. The median household income in Auburn, Ala., is only $21,630,
and the winters are mild. In Blacksburg, Va., it is $26,792, and in Mount
Pleasant, Mich., it is $27,621. These three cities all happen to double as
college towns — Auburn University, Virginia Tech and Central Michigan
University, respectively — which tend to offer lots of cultural and educational
events, often priced low to attract students. One warning: If you live in a
town that’s too isolated, it may take you longer to get to airports, hospitals,
libraries and stores, and you’ll find that your children and friends may not
visit you as often as you’d like.
2. Pay off your house
The most recent statistics show that at least a third of those who are 65
and older are still paying off mortgages, and some continue to work because of
these mortgages, their largest single expense. Imagine how much better you can
live in retirement with an additional $12,000 to $24,000 a year.
3. Get rid of car payments
It’s easier said than done, but having no car payment will save you hundreds
of dollars a month. After you pay off your car loan, be sure to maintain your
car well so it will last several years. Some retirees who no longer need to
impress clients with luxury cars downsize and buy more affordable cars and save
hundreds of dollars a month doing that. Whatever you do, don’t lease a car.
That guarantees that you’ll continue to have large monthly payments going
toward transportation.
4. Take care of your body
Eat well. Exercise. Don’t smoke. All of those things you need to live a
healthy life will reduce the likelihood that you’ll need expensive surgeries or
other medical procedures. And if you retire before you qualify for Medicare,
your health will be a major factor in the health insurance rates you pay.
5. Delay retirement
There are two reasons to do it: You’ll give yourself more years to save for
retirement, and you’ll receive a higher Social Security benefit. If you’re
trying to decide, keep it mind that the key is whether you think you’ll live
past 79. Let’s look at two examples:
Mary and John are the same age, and they both will live to be 90. They stand
to collect the same amount if they retire at the same age, but Mary wants to
start receiving benefits when she turns 62. She receives $19,320 a year, and by
the time she dies at 90, she has received $542,570. John waits until he’s 70 to
start collecting his benefits. He receives $35,340 a year, and by the time he
dies, he has received $709,745.
The break even age– the time at which she would have collected the same
amount whether she retired at 62 or 70 – is 79 years and six months. If you
think you’ll live longer than that, consider delaying retirement. It just might
pay off in a big way.
Have A Great Cheap Cheetah Day!
