Your expenses will likely decrease when you retire, so you may be able to live on less money than you currently do. Of course, your expenses will depend on life style choices that you make, including where you live and what types of leisure activities you participate in, but here are some expenses that can go down when you retire: Your mortgage Paying off your mortgage before retirement eliminates one of your biggest monthly bills. You will still have to pay for insurance, property taxes, and home maintenance, but these costs will be less than your old mortgage. Downsizing and renting are other ways to save. Auto costs The cost of gas for your daily commute to work, and wear and tear on your car, will decrease when most of your driving is for personal errands and leisure activities. Many married couples find that they no longer need two cars, and that it is easy to coordinate schedules. This will reduce your insurance and car maintenance costs. Convenience costs Having a career takes time and energy, so many resort to buying expensive ready-made food, and paying someone else to do house and yard work. Retirees have more time to shop, prepare simple healthy meals, and stay active by doing household chores. Professional clothing Retirees no longer need to spend money on expensive work clothes, dry cleaning, tailoring, hairstyling and makeup. You won’t have to keep up with fashion trends - unless you want to, Travel costs Many working people have to travel at peak times such as national holidays and school breaks. Retirees get to travel during weekdays and off-peak seasons, when the prices are lower and the crowds are smaller. Paying full price You can get senior discounts on many goods and services. Not all senior discounts are advertised, so don’t be afraid to ask. At Penny Lane Financial we have retirement planning tools to help you determine how much money you’ll need, pay off your mortgage, maximize your Social Security, and make safer investments so you can get more out of life. Don’t wait – now is the time to prepare for your better retirement.
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