Right now, those who are living off their retirement funds — and those who plan to live off of them within the next couple of years — are finding that their retirement accounts may not be stretching as far as they would like. Indeed, the recession and the stock market crash have made it necessary for retirement stop-gap measures.
Even though they aren’t a lot of fun, these three things can help stretch your retirement budget:
- Reduce the financial help you give to others. You may have to cut back on funding college, or providing an allowance for adult children and grandchildren. You may also have to reduce your charitable contributions. Carefully think about where the money can best serve others, and whether you might need it to provide your necessities. You can pick up donations and provide more help to family when your personal finances are on better footing.
- Work longer. Perhaps you will have to put off retirement for a year. If that is not an option, you can look for a part-time job or look for ways to make money online from home. Having money coming in is vital at this time, in order to reduce the amount of money you are taking from maimed retirement accounts.
- Cut your expenses. It’s time to live more frugally. Cut back on some of your expenses and pay attention to sales and coupons. You should also consider reducing the “toys” you have. Some things, like an extra car or a boat cost money in terms of insurance and sometimes loan payments. If you sell these things, you could get some more money in addition to reducing recurring payments.