If you’re a baby boomer with a strong desire to live frugally, you aren’t alone. According to a recent study, baby boomers have adopted a frugal mindset and now consider saving for retirement as a basic necessity. In fact, 64 percent describe themselves as savers as opposed to spenders. While there is nothing wrong with living frugally, the retirement years are a time for freedom. The key is to find a balance between frugality and fun, and these tips should help.
Plan for the Future
One of the largest expenses baby boomers encounter is long-term care, which can quickly eat away all your savings. Get ahead of the game and look into the benefits of long-term care insurance, which can be used to pay for assisted living or nursing home care. Find a helpful site like Consumers Advocate for detailed info on the top, trustworthy long-term care insurance companies. You might also want to consider whether you need a life insurance policy. A common myth is that everyone should have one, but if you no longer have dependent children or enough income, you might consider selling it. The money you save could then be used to purchase final expense life insurance, which can help cover funeral expenses and protect your assets. This type of insurance has lower premiums and is very easy to qualify for, giving both you and your family peace of mind.
Catch the Travel Bug
Travel is synonymous with retirement, but is generally regarded as expensive as well. Fortunately, there are several budget-friendly travel tips to help you see the world. The easiest way to save for travel is to start planning as early as possible, and opt for travel during the off-season. When choosing your destination, be sure to comparison shop.
For example, the price you pay for a one-week trip to Disney could get you a month’s stay in a European country. Pack on the savings by cooking your own meals, walk or use public transportation instead of a rental car, and consider splitting the cost by traveling with other retirees. The hardest part of the travel experience will be choosing where to go, so perhaps you should consider baby boomers travel trends such as educational tours, adventure travel, bucket list travel, and multi-generational travel.
Find a Fun Way to Make Extra Cash
Chances are you want to stay far away from the 9-to-5, but there are several fulfilling and fun ways to make a little bit of extra cash to use for general and leisure expenses. For example, you can turn your hobby of woodworking or knitting into a side job. If you love animals but don’t have one of your own, offer your services via pet sitting or dog walking. Should cooking be your expertise, whip up a product such as jams or baked goods to sell at community events, farmer’s markets, or online via social media. The best part about a side job is that you are in charge, and you can work as much or as little as you’d like.
Learn Something New
If you have grandchildren, you are all too familiar with the high costs of education, but learning doesn’t require a large investment. The Internet is filled with online tutorials where you can learn anything from coding to piano to golf, all from the comfort of your home. You can even take a class at the local college or university, and many offer large discounts for seniors. You may even be able to audit the class and take it for free. If you’d prefer to be the teacher as opposed to the student, tap into your vast knowledge and skill sets and teach an online course. If you have a computer with a camera, all it takes is some research, tutorials, and practice to film classes – you can make an income doing it too.
After retirement, being frugal comes with the territory. The good news is that there are ways to save and enjoy this new chapter of your life. The ideas above are a good start, but the options truly are endless.
Author Bio: Jim McKinley is a retired banker who enjoys helping people make the most of their hard-earned money. He runs the Money With Jim blog to provide readers of all ages with information on budgeting, first time home buying, savings, and insights on a number of financial topics. Learn more about Jim here.