Solving Your Money Problems in Retirement

Solving your money problems in retirement might be easier than you think.  The first thing you should do is track your expenses and know exactly what you’re spending each month.  Compare that to the amount of money you have coming in to fully understand the extent of your problem.  Defending upon the size of your shortfall, there are a couple of things to consider.  First, is the nature of your debt a onetime occurrence such as an unexpected repair bill?  If it is then that changes how to approach the problem.  A one-time occurrence, unless it is an exorbitant amount of money, is easier to address than an ongoing shortage that will keep occurring each month.  With a single debt, solving your money problems may be as easy as selling some of your possessions.  Remember, working with the organization to whom you owe the money is a very smart thing to do, especially if it is a medical bill.  Make a payment schedule that you know you can make, be on time with your payments, and there is very little they can say no matter how long it might take to pay the bill.

It's always a good idea to make an annual assessment of everything that you have in the house and whether you still need to own it.  Many of our friends have sold what they thought was “junk” and were very pleased with what they were able to get.  It’s always best to take inventory and sell what you don’t need before you’re faced with the problem of trying to find money quickly.  Although garage sales are still very common, the newest way to liquidate your belongings is on the internet.  If you live in a community, check out whether they have a social media page where you can advertise.

If you’re experiencing a monthly shortfall there are still many different ways of solving your money problems.  One way is to cut expenses, of course, and the other way, which is a little more difficult, is to increase your income.  Let’s take a look at cutting your expenses first.  If you look at your list of all your expenses, is there anything you might be able to cut back on?  One of biggest expenses is dining out because we like to do it.  However, if money was to become tight, it would be the first place we would look at to cut expenses.  Instead of dining out as much as we do, we might decide to cook in a few extra nights.  Most people find that their food bill is the place where they have the greatest ability to control their expenses.  If dining out is one of your weaknesses, it may be the first place to look at in covering your monthly shortfall.  You might also find out that cooking can be more fun than you think.  We have a collection of cookbooks that have some of our favorite recipes and it can be a lot of fun to cook together.

Solving your money problems might help relieve some of the stress in your life.

In our case, our travel budget would be another place to look at if we had a need to save money.  It’s one of those things that we would hate to cut back on but, if it came down to it, we’d be able to find ways to save money.  While there are other places to look at in your need to cut back on spending, you should not do it on things that are health related. Take the time to understand the long-term impact before you take steps in solving your money problems in retirement.

One area that might be worth looking into is the size of your house and the equity that you have built up over the years.  A friend of ours sold the house she had been living in for twenty years, took the money and bought a smaller condo in a 55 and over community.  She can’t believe what a difference it has made in her social life and how much money she was able to get from the sale of her house.  These are all things that are worth looking into as you make a plan to solve your money problems.

Don’t forget about the possibility of increasing your monthly income.  Of course, getting a job is a possibility especially if it is associated with a hobby or interest that you have.  You might even consider starting a website and entering the world of affiliate marketing.  I am fortunate to not need the money and started this website as a hobby.  I’m always pleasantly surprised at the financial benefits that have come along with this activity that I enjoy doing any way. It’s easier than you might think it is and learning new things is what keeps you young in retirement.

The main thing is not let your financial struggles get you down.  Solving your money problems may be easier than you think, especially if you get creative about it.  Look at all the possibilities in cutting expenses and creating extra income.  I wish nothing but success and I hope your money problems disappear completely because it’s time to Enjoy Retired Life!

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