Retirement is the golden age in life that many working class individuals look forward to with excitement. Few remember what it is like to have lots of time to dedicate to things like intense hobbies, traveling, and grandchildren. Retirement might also mean a drastic decrease in funds, however. Cutting down on spending and debt will lead to a much happier, financially secure retirement.
Paying Towards Mortgage Principal
By paying extra payments towards the principle of a mortgage, homeowners are shaving off quite a bit of interest over the life of the loan. Some may make double payments every month in order to pay off the mortgage quickly while saving money. A paid home is the perfect way to celebrate retirement.
Selling Unused Vehicles, Machinery, or Water Sport Equipment
For the couple who is preparing to retire, it is rather unlikely that they will need more than two vehicles. Therefore, additional vehicles should be sold to fund other debt payments and to reduce maintenance costs in the long run. The longer a car sits, the more it will depreciate while still incurring costs for maintenance. Tractors, ATVs, golf carts, and boats that are rarely used should be sold as well. That doesn’t mean that the old, trusty fishing boat should go anywhere, though!
Eliminate Membership Fees & Dues
From luxurious golf course memberships to season passes for infrequently visited attractions and parks, considering canceling all memberships. Instead, try paying per visit; it may save quite a bit of money. For those with timeshares, getting out of a timeshare should be a top priority. They can be rather expensive, especially if the couple doesn’t intend on visiting the timeshare regularly.
Settle Credit Cards & Closing Accounts
Many credit cards have annual fees and high interest rates. Over one’s life, it’s not hard to accumulate five or more credit cards. Instead, it is wise to choose the three best cards with low interest rates and no annual fees to maintain the accounts. The rest of the accounts should be canceled as soon as they have been paid. All credit cards should be paid off before retirement so that all accounts have an open line of credit in case of an emergency.
Retirement should be a liberating and fun phase in life that is filled with lots of enjoyment. Financial burdens can greatly warp the retirement experience, so don’t let them take the reigns during the best years of life.