If ever there was a time that demonstrated the uncertainty and unpredictability of life, it’s now. Even if you’re young and you’ve got a stable income, it’s beneficial to start planning now to reduce financial stress in the future. Here are some steps you can take.
Saving
With many people facing a very uncertain few months ahead, the benefits of saving cannot be underestimated. Budgeting and putting money aside can help to prevent overspending and create a nest-egg. If you don’t already save money on a monthly basis, it’s a good idea to set up a direct debit on your payday. If you can afford to put even a small amount of cash aside each month, this will help to create a more stable, secure future. Use budgeting techniques or apps to work out how much disposable income you have in an average month and save whatever you can. If you transfer a lump sum as soon as you get paid, this will enable you to plan the rest of the month and reduce non-essential spending.
Retirement planning
If you don’t plan to retire for another 30 years or so, you might not think that you need to worry about pensions or investments at the moment. The truth is that the sooner you put plans in place, the better. If you don’t have a pension already, or you’re unsure whether your current pension is the best option for you, it’s worth seeking advice. If you’ve already taken out a pension, and you’re concerned that you have been misled, it is wise to investigate SIPP pension claims. To avoid finding yourself in this situation, if you haven’t already got a pension, research before you sign on any dotted lines and don’t hesitate to ask for help if you’re not sure which product is best for you.
Creating an emergency fund
You only have to read the newspapers or listen to the headlines to see that a bolt out of the blue can cause financial problems for anyone. Even when life seems to be rosy, nobody knows what is around the corner. Having an emergency fund will provide peace of mind and financial support if you do find yourself in a difficult situation. An SOS fund could help to cover you if your hours were cut at work, you lost your job, you had an accident, or your home or car needed urgent repairs. Start saving on a regular basis and look out for savings accounts that offer high interest rates or the ability to save on tax, for example, an ISA. It’s also worth ensuring that you have insurance policies to protect your home, car and family. If you have insurance, this can cover unexpected costs and reduce anxiety linked to money problems.
Nobody has a crystal ball, and you never know what the future holds. Taking action to manage your finances and start saving, and planning for the future now will be beneficial in years to come. Try and save more each month, take advice from experts on board and plan for your retirement.
When you retire, that doesn’t mean that the
money has to stop flowing. People that plan for retirement are often set for
life. But workers that don’t plan for retirement can still hire private equity experts to maximize income after
retirement. It’s easy to become versatile with your money-making abilities by
exploring multiple opportunities. Check out the list below to see all of the
available choices for retirees.
You can turn an extra room or an outhouse
into profit by renting it out to guests. There are websites that handle setting
up visitors so that minor work is required on your side to get the money
rolling in. You set the rates, along with any rules for the guests to follow.
This setup works best if you have a space that is disconnected from the main
house. That way you can maintain the integrity of your own personal space
without compromising privacy. Renting out space is done a lot, and depending on
the situation, some retirees have rented out their entire homes to go on long
vacations.
Rent Out Your
Parking Lot
Do you live in a prime location that is
only a few miles from the biggest events in the city? Then this option is for
you, and can potentially make more than renting out extra space. You rent out
parking for less time than renting a room but get much more money as a result.
Usually when a big event takes place near a neighborhood, homeowners will block
off their parking so that tourists don’t sneak in a free space. Instead of
going through that trouble, rent out the spot and get paid to let a tourist do
the blocking for you. It is a win-win situation that keeps you from worrying
about a stranger taking up a precious parking spot.
Become A Life Coach
The best life coaches are the ones that
have years of experience to draw from. That can be you, and the competition
isn’t as bad as you think. Since every life coach has a unique perspective,
there isn’t a lot of overlap with specialties. A life coach that helps with
dieting is completely different from another coach that offers the same set of
skills. Consumers are looking for someone with knowledge, and also someone that
they can connect with. If that is you, then the marketing takes care of itself
after the first customer. You can further enhance your chances of making money
from this tip by becoming a certified life coach.
Rent Out Your Home
While On Vacation
There are people that pay you to house sit
their home. It sounds weird when you first hear it, but is actually a real and
legit thing. If you opt for international house sitting, you can visit exotic
locations for weeks or months at a time and rent out your home while away.
Getting paid to take a vacation is a retiree’s dream, but in this case, it is a
reality. Your chances for getting picked are enhanced due to your status as a
retiree. Homeowners are more likely to trust someone older and responsible that
has put in years of hard work over someone younger and inexperienced. Getting
paid to house sit is probably one of the few positions where ageism is
reversed.
Find And Sell Older
Photos
Your memories are worth more than you think
if they have historical significance. It doesn’t need to be a perfect 4k high
definition photo to be valuable. Pictures from known world events are always
sought after. That moment is in the past, and there are still an unlimited
number of pictures and videos in the wild that show the events from completely
different angles. This is a lot different than paparazzi photos on popular
blogging websites. If you think that your pictures or videos have historical
significance, there are plenty of buyers willing to gain exclusive rights to
them.
Write Letters The
Old Fashioned Way
This is more of a niche way to make money,
and requires a bit of background. There are a few buyers around the world that
pay for typewritten notes using older equipment. Out of all the choices on the
list, this one will probably be the hardest to make money from. You have to own
an old typewriter, and you also have to develop a rapport with the client. As
small as this industry is, it is one of the most fulfilling to do as a retiree.
The work is calming, non-hectic and has a very relaxed schedule. While working
at your own pace you discover new people, new stories and a brand-new way to
make extra money.
Use Your Crafting
Skills
Websites make selling your crafts to the
world easy. This is another hobby that can turn into a big money maker without
you putting in a lot of effort. The fun thing about crafting is that you can
make whatever you want. Your customer base will come to you, and you can choose
whether or not to offer customization options. You’re technically in control of
a small business where your working hours are ‘whenever you feel like it’. Some
people make a few extra bucks a month while others have replaced their entire
retirement income. The level of success is all up to your own flexibility and
knowledge of customer needs.
Tutor In A
Specialized Subject
This is similar to being a life coach except
you get to teach a class on something that you’re specialized in. So instead of
coaching up a single student on how to get through the tougher parts of life,
you are teaching several students a brand-new skill. Once you get a few
students, word of mouth will help you get even more money. As a retiree, there
are several skills that you can teach based off of personal experience. A
manager in training may reach out to you for tips on becoming a manager. A
homeowner may need help dealing with the financial burden of a new home.
Whatever your personal experience is, turn it into a money-making machine.
Bloggers Are
Everywhere
Just because there are countless bloggers online that
doesn’t mean there is no money to be made. Blogging will always bring in the
advertising bucks, even if you are small time. The most interesting aspect
about this money maker is that you gain more attention by being yourself. Make
the blog persona, and write about your own personal life experiences. People
read blogs for unique takes most of all, so being natural with your personality
is a must. Out of all the choices on this list, blogging is the one that takes
the most setup. If you’ve got the time, consider it a great carefree option to
journal your life online while making some money on the side.
Sell Your Items
Online
Over the years, your multiple hours of work
weeks allowed you to collect a lot of things that you probably don’t use
anymore. Usually a garage jail or drop off at goodwill would take care of these
unused items. Retirees that never got around to either option can sell their
unused items online for a tidy profit. Selling products online starts out
small, and then turns into something special when you get a lot of positive
reviews. There are dedicated platforms for this that cover the initial setup
and expand your reach well beyond what a simple garage sale would cover. You
can sell items internationally all from the comfort of your own home.
Trade Stocks
This is the logical step for a lot of
retirees that have already invested in stocks while they were working. Plenty
of retirement packages include stocks that turn into a sizable chunk after
retirement. When you have all of the time in the world, dabbling in stocks can
quickly become overwhelming. Retirees are encouraged to trade on the stock
market, but to a certain extent. Don’t treat the market like a casino, and
never put in more than you’re willing to lose. Short term and long-term gains
will get you a lot of money if you’re smart about the initial investment.
Invest In A Startup
Company
There is a low buy in for some startup
companies that end up making millions in profit later on. With this type of
deal, you can be a hands-off partner that collects a check without doing any of
the work. There is room for error in this, so tread lightly. Former jobs can
sometimes provide insight into such companies and will already have profiles on
them. Depending on your relationship with a current employer, you may have a
goldmine right under your nose. The lesson here is to not burn any bridges while you are working so
that there is always a potential money-making opportunity down the line.
Wrap Up
Once you get the ball rolling, passive
income is the best residual money you’ll ever make. With enough success, it can
even be more lucrative than normal employment. Make a list to get started, and
find out what choice works to get the money you deserve.
It
is believed that roughly 25% of those aged 65 years and above live with
families that rely on social security. For this reason, retirees who earn less
than $1500 in social security must operate a very tight budget in order to meet
up with their financial responsibilities. The following are some of the
measures you can put in place in order to stretch your social security and meet
your financial obligations;
Though you should start collecting your
social security at the age of 62, your monthly social security benefits will
get higher if you can just wait for a little till your retirement age to start
collecting the money. If for instance, you start collecting your social
security at 62 when your retirement age is 67, your social security benefits
will be reduced by 30%. Learn more about this from Navigation Wealth Management experts.
Consider
moving to an area with lower costs of living
You can maximize your social security benefits when you reduce the costs of your living. Do not hesitate to move to a city or town with lower costs of living when you retire.
Try
and pay off your debts before retiring
Credit card bills and mortgages are some of
the biggest debts that can deplete yoursocial security funds. Try as much as possible to repay them before you retire.
Consider
moving to a more tax-friendly state
Many states, including the Washington DC,
do not tax social security benefits. Living in states that do not tax social
security will help you stretch your benefit further to cover your daily
expenses.
Join
discount membership programs
There are some fantastic discount
membership programs you should consider joining if you want to get more from
your social security. The AARP membership, for instance, will provide you with
discounts or savings on your health expenses, entertainment, shopping, and
restaurant meals. There are some other community memberships you can find that
provide discounts for seniors.
Request
from senior discounts when you make travel bookings
As a senior citizen on social security, you
will have more time to travel but flights and hotels can be incredibly
expensive. You can save more money off your social security by simply taking
advantage of discounts on airlines such as Southwest Airlines, and American
airlines. There are several hotel chains around the world that also offer
discounts to senior citizens worldwide.
Make
sure you don’t overpay for prescriptions
The costs of medications can quickly add up
and you should consider choosing the generic payment options if possible if you
want to save money on such medications. You may want to join a prescription
membership program to receive rewards such as discounts.
Volunteer
or get a senior job
If you do not have a health challenge that
will reduce your mobility, it will be ideal to become a volunteer or get a
non-physically demanding job. Volunteering is a good way to spend your free
time, even if you don’t get financial rewards for such.
Avoid
adding new debts
If you cannot pay off all debt before you
retire, then you should avoid adding new debt, if you want to maximize your
social security benefits. You should consider steering clear of whatever that
causes impulse buying and practice self-control so that you can stick to your
budget. It is disheartening to know that many people are still entangled in
debts even after retirement, this eventually makes it almost impossible to save
money off their social security.
Downsize
to a smaller home
One of the best ways to save money while
living on social security is to sell your home and move into a smaller one.
Fortunately, home values increase over time and you should take this
opportunity to sell that family home and move into a smaller home that will
cost much less to maintain. Moving into a smaller home does not mean you have
to give up on your comfort, you just want to give up the unnecessary free
spaces and reduce the costs of maintaining such large homes. If you don’t want
to move out of your large home, you may want to consider renting out a room or
apartment from the home, to save more on your social security. Having a
roommate will help you save costs of utilities, including electricity, water,
and cable.
Consider
online income opportunities
If you have not considered online
money-making opportunities before, this could be the ideal time to do so.
Online income opportunities such as freelance writing, data entry, and survey
participation can give you a few hundreds of dollars to augment your social
security.
Make
use of restaurants that offer discounts to seniors
It is okay to eat out at restaurants once
in a while, even though you want to be frugal with your living expenses when
you are on social security. There are numerous restaurant chains that offer up
to 25% for seniors, on all types of foods and drinks. There are some
restaurants that offer free meals to seniors on a particular day of the week or
month.
Make
use of free entertainment advantages
You don’t have to spend part of your social
security to have fun and be entertained. There are museums and movie places
where seniors can enter for free at a certain time of the day. Your local
theater or coffee shop may organize open mic shows that you can attend for
free. Book readings, free outdoor activities and free lectures at local
colleges, are some of the free entertainment and educational opportunities you
should take advantage of.
Conclusion
Living a frugal lifestyle perhaps is the
most important skill you should embrace when living on social security. Cutting
costs can be very inconvenient for many, but the rewards can be very enticing.
You may want to take advantage of free evening schools for seniors in local
colleges and universities where you can learn a new skill you can apply outside
of the school to make extra income and live comfortably with your social
security.
In fact, many retirees are considering continuing working after they retire, and this may well include the formation of a business. It’s a challenge, but to some it is preferable to spending days relaxing.
This article isn’t about whether or not a retiree should start a business. Instead, we’re going to focus on how you can gain funds to help start a business in retirement.
This is probably one of the ‘fears’ that prevents people in this stage in their life from taking the plunge. However, it is possible to get some money in place to start and maintain a profitable business after retirement.
We’ll take a look at several of them.
Downsizing
A relatively new term, ‘downsizing’ allows you to release money in the sale of your property. Normally, downsizing means moving to a new, smaller property, and enjoying the equity you’ve released alongside that.
This is an interesting situation, because downsizing does indeed release funds through selling. However, you obviously have to live somewhere, so much of the downsizing profit may be spent on living expenses.
There may, however, be some money there afterwards that can be spent on pulling together your business. It is again a good idea to sit with a finance professional who will be able to tell you, realistically, what you can expect to gain from downsizing, and whether the amount of money will cover business expenses.
Spending the kids inheritance
This has become a growing trend in recent years. Rather than spend money on the future of their children,some retirees opt instead to spend it on themselves.
This has become more popular as people live longer. Money that has been saved up or has reaped returns on investment is simply used by the parents for other purchases. And these purchases are all about the parents, not the kids.
Using this money to start up a business is perhaps something new. The whole point of spending the inheritance is to enable a better standard of life. Many retirees take that money and go on a long holiday, for example. However, it is possible to use it to fund a business.
Whether that fits in well with a retiree’s own views on what they want from life is up to them. But if it is a large sum (and most parents now save up a lot for their future generations) it can be used very effectively to develop a business. For example, it is accepted wisdom that you shouldn’t start a business without ‘buffer money’. Buffer money is money you have ready for the first six months of the business.
Business can be challenging. If you are able to gather a good sum of money to protect against the ups and downs of business for those vital first few months, you’re in a great position. Of course, this option is appealing because you have more control over how the money is spent. If you just want to use a small amount of the money to fund one key aspect of starting a business, that is entirely up to you.
Equity release
Equity release is a situation where the borrower can take out an equity release contract, which releases money that is equal to up to 60% of the value of your home.
This can mean you can take on a potentially large amount of money very quickly. There are a couple of options in equity release that you can take advantage of. This is encapsulated in two products available to you, the borrower:
The lifetime mortgage. This allows you to take money out against the value of the property.You have to be at least 55 years old to do this. One key aspect that makes this option an attractive one is the option to pay off all the interest, some or even none of the interest before the mortgage ceases. It ceases when you have to enter care, or you die. Another key aspect is you not having to take out the full amount. And you only pay interest on the amount you withdraw.
The home reversion. This is a little more complicated than the lifetime mortgage. You can sell all or part of your property to a specialist home reversion company. You no longer own that whole or part of the property. However, you do have the right to remain in the property until you die or move onto long-term care.
If your business is dynamic
By ‘dynamic’ we mean looking like it’s going to grow quickly. If it is looking this way, then consider seeking investment.Bear in mind that not all investment runs into the hundreds of thousands. Some investors can pump money into a business for a small slice of profits, and they are much more likely to do this if you have an idea for a business that looks like it will grow quickly.
It’s worth considering seeking investment,simply because it allows you to have that early head start, without having to find money from more traditional lenders. Obviously it relies upon you having a strong idea that will make money for investors. But if you do, the power investment can bring is considerable.
Your choice
Many retirees look for funding from banks and their home value. Whatever you do, bear in mind that for the first six months of your business, you will have to work incredibly hard to make sure money is handled wisely, and your business gets your complete focus. Using some of the methods in this article to gain finance can help you on your way to running your ideal business in retirement.
Couples nearing retirement may be considering upping sticks and relocating to be closer to family or to explore a new country. According to a Merrill Lynch study, 64% of retirees move home during retirement. Therefore, increasing your property’s value in the years leading up to your retirement is the perfect way to ensure a good return when the time comes to sell. Everyone knows that preparing for your retirement is essential, so if you’re one of the ones looking to move home, what are your finance options?
Remortgage your home
One of the easiest and quickest ways to free up some cash in order to get a kitchen installation, undertake a loft conversion or add an additional bedroom to your home is to remortgage your property. This means borrowing a sum larger than your existing mortgage so that you can use the additional funds to complete your renovations. Once you’ve retired and have bought a new home, you might be wanting to complete home improvements on that too. Taking out a reverse mortgage can be an ideal solution for those aged 62 or over who are looking to free up some spare cash.
Take in a lodger
As a couple nearing retirement age it’s likely that your children have moved on and in their place are large empty bedrooms, gathering dust. Taking in a lodger is the ideal way of increasing your bank balance each month. Most lodgers are very little hassle and choose to spend most of their time in their rooms, so you’ll barely notice the additional body in your home. The extra income will be a welcome bonus, too. Just remember to make any potential lodger aware of the renovations you’re planning.
Turn your home into a business
If you’re after something a little more lucrative than a lodger, consider transforming your home into a bed and breakfast. American B&Bs can be very profitable businesses with the average daily rate being $150 and average revenue per room hitting $58. When you decide it’s time to retire, you’ll have two valuable products to sell; your home and your business, which can result in a nice return for you to rely on during your retirement.
Invest your savings
You’re probably keeping your savings back to use once you retire. However, investing them to boost the value of your home is a great way of seeing a larger profit when you decide to sell up and retire. It’s not advisable to splurge all your savings on your project, but, taking a chunk of them to cover the cost of the work and to, ultimately, increase the value of your home is a practical way of financing your home renovations.
Finding suitable ways to finance home renovations when you plan on moving home during your retirement is the perfect way to ensure it’s a prosperous and healthy one.
