Knowing the difference between living frugal and living cheap is the key to living a successful and comfortable retirement life. But what’s the difference between the two?
Well… paying less for a product that is of inferior quality is basically cheap. You might have acquired the product at a bargain but the baseline is that the product is still poor in quality. You may as well have acquired a more similar product at the same price.
When it comes to frugal purchase or living, you aim at creating value for your money. This means paying less for a high-quality product. In simpler terms, you make sure to create value for your hard-earned retirement money.
Read along to find out how you can successfully and comfortably live frugally as a retired senior.
As mentioned above, a frugal living aims at finding value for any expenditure and savings. Its therefore of utter importance to ensure that you consider a budget that is efficient and offers proportionality.
While creating your budget, ensure to list the most important elements in your life first. Basic things such as food, housing and medical care should be at the top of the list followed by other aspects of life such as entertainment, clothing and additional expenses.
Jayne Byrne, Project Coordinator at a nursing home in Kildare comments that “If you notice someone, particularly if they are over the age of 65, forgetting things, or finding it easier to remember things that have long since passed, then it is perhaps time to go to the doctors. If dementia is caught earlier, then this will give you many more options for treatment. “
Carefully Choose Your Lifestyle
It’s common knowledge that each and every person should live within their means. The same goes for frugal living as a senior. Remember, your lifestyle will determine how you spend most of your money.
First, consider where and how you are going to live once you retire. Does your financial life allow you to maintain that apartment or will you have to down size to a cheaper accommodation? Such questions should help you get a clear picture on the lifestyle you intend to live.
Always remember that downsizing does not mean that you live a miserable life. After all, smaller houses are quite cheaper and easy to maintain than big city apartments. This gives you an extra opportunity to do away with other bulky stuff that you no longer need, and make an extra buck out of them.
Having a huge amount of money in your bank may be quite tempting. Without a clear plan on how to use the money, you might be tempted to go out on a shopping spree or even go on expensive, exotic holidays. Well, this is not wrong. However, always remember that as a retiree, this might be the only money to keep you comfortable for a long time.
To successfully live a frugal life, ensure you pay yourself on a weekly or monthly basis. This system will go a long way to ensure that you always remain on budget as a retiree. This way, you won’t run short of money for basic things such as healthcare and food.
Hire a Financial Advisor
This may be one of the most important things you’ll have to do before going on retirement. Financial advisors will always ensure that you remain on track with your finances and meet all your retirement financial goals.
Even so, it’s never too late if you are already a retiree. You can always hire a financial advisor to guide you on basic day to day financial aspects such as how to file for security and how to successfully structure your retirement withdrawals account among many other aspects.
Frugal Living: In a Nutshell
It’s one thing to live a cheap life and another to live frugally. Frugal living is all about spending your money wisely without compromising on the quality of a product or service offered.
While living a frugal life may seem easy, it can prove to be challenging once you don’t have a clear plan on how to spend your money. The tips mentioned above can guide you to live a successful and rewarding life as a retiree.