Running Out of Money in Retirement

Running out of money in retirement is almost everyone’s nightmare.  We’ve heard from many of our friends that their finances have caused them more a couple of uneasy nights and it’s something they worry about all the time.  Rather than worrying, however, my suggestion is to be proactive and find ways to avoid this happening.  While you can’t go back and change the past, you can make adjustments that will help your financial state.  You either need to cut back on spending or increase the money you have coming in and there’s no reason you can’t to do a little of each.

Spending less money in retirement does not have to mean not enjoying yourself.  In anything you consider as part of your financial strategies, make sure you don’t lose sight of the fact that this time of your life should be something you enjoy doing.  If you have to eliminate something that costs more money than you can afford, like a cruise or a trip to Europe, substitute something that will cost less but still provide a lot of pleasure like staying local for your vacation.  It always amazes me how the places that are familiar to us can often be overlooked as great places to travel to.  Challenge yourself to research everything in your area to see if there’s something you’ve missed, even if you’ve lived there dozens of years.  It can be very surprising when you look up local history and find a home or a famous site that you had never explored before.  Learning new things is always worthwhile and expanding your interest to include places that are close by can be very rewarding and cost effective.  And, more importantly, it can help you avoid running out of money in retirement.

To raise extra money, you can consider selling things that you own that might be of value.  We know people who have gotten very good at putting things for sale on the internet and creating quite an impressive income.  Websites like eBay and Etsy are helping people make money from their possessions and have fun at the same time.  While getting rid of some old things might be a bit of a struggle from an emotional standpoint, it is better than running out of retirement any day.

Running Out of Money in Retirement May Force You to Make Decisions You May Have Delayed

If things are very tight, you can get a job but, as we’ve said in other places on this website, be careful about choosing this option because you want to make sure that it isn’t just a job but something that you enjoy doing.  You didn’t spend forty or more years working just end up in a job you don’t like just to make ends meet.  A lot of people avoid running out of money in retirement by making minor adjustments to their lifestyle.  They eat out less and cook at home more and that can be very rewarding as well.  Many couples do it together.  And, if you have friends who enjoy food, one of the great pleasures of retired life is a dinner with friends who share the cooking.  This can become quite competitive with some very beneficial results like wonderful dinners at home for less than half the cost of eating in a restaurant.  The best part is that you’ll have fun doing it and, possibly develop a love of cooking and eating gourmet food that turns into a wonderful hobby.

That’s always my recommendation for creating more money in retirement.  Turn a hobby into an income or, in the case of cooking, saving on a living expense by eating out less.  Many people have turned a hobby or a business into an income and mastering the internet is a way to do that.  I know a couple of people who saw the rising costs living and started a business online because they were afraid of running out of money in retirement.  It may sound intimidating but there are companies that offer incredible programs to get you started.  I am fortunate to have enough income to enjoy a very nice life but I started a website anyway to learn something new and challenge myself with creating something that fills my need to learn about new things and motivate others to do the same.  I enjoy the process tremendously.  I have to admit that traveling and other hobbies get in the way sometimes, but I always come back to this website that’s designed to help people enjoy their retirement.

Running out of money in retirement does not have to happen.  You need to review your expenses, cut them where you can, downsize if you have to and look for ways to generate a little extra money from your possessions or your talents and skills.  Be creative and look for ways to generate money from an interest or hobby.  If you like to travel, try writing about it or selling your photographs.  If you like to write, explore different ways to generate income.  Don’t become discouraged and don’t let the joy of retirement slip away.  We are blessed to get to this stage in life.  Many people don’t.  We owe it to them to make the most of it.  It’s time to Enjoy Retired Life!

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