Personal Finance

Low on Retirement Savings? 3 Cost-Cutting Moves to Make | Personal Finance

1. Downsize your living space

If you’re nearing retirement, it may be that you own your home outright, or that you will before your career wraps up for good. If that’s the case, downsizing your living space could really help make up for limited savings.

First of all, a smaller home should be less expensive to heat, cool, and maintain than a larger one. And if you stay in the same area but dump some square footage, your property tax bill could shrink, as could your homeowners insurance premiums.

But also, if you own your home mortgage-free, or have a lot of equity in it, then selling a larger space and buying a smaller one could leave you with a chunk of cash to pocket. You can then invest that money to generate some growth and tap it as you would an IRA or 401(k) when you need income to keep up with your expenses.

2. Get rid of a car

When you work full-time, it’s often the case that you need a vehicle to get to work. But once you’re retired, you may not need to use a car every day, even if you live someplace without much public transportation. And so getting rid of a car could end up saving you a lot of money.

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