How to Retire Somewhere with a High Cost of Living
If you’ve been strategic with your saving and planning, one of the perks of retirement is moving somewhere you’ve been dreaming about. Where you choose to relocate in retirement can dictate what you spend your money on. If you’ve chosen a location with a high cost of living, there are some rules and guidelines that can help you get the most out of your money while retired.
Choose Your Housing Wisely
One of the main factors of a high cost of living is how much people typically spend on housing in the area. The average price of a home may be steep where you’ve chosen to live, but that doesn’t necessarily mean it’s out of reach. Think about what you actually need in a home now. Chances are the kids have left and you probably don’t need as much space as you used to. If you don’t have pets, now might be the time to consider apartment living. Need a little more space? A townhouse or condo could give you exactly what you need for much less money than you would spend on a new home.
Cut Costs Where You Can
If you have chosen to live somewhere where home prices are high, you can make the commitment to cut costs in other areas of your life. If you live somewhere fairly urban or suburban, you most likely have many choices when it comes to shopping for groceries, furniture or other supplies. While it may not be efficient to shop at a bulk grocery store for everything you need, you can save money on particular items that you use often when you purchase them in large quantities. Think about buying furniture at discount stores or searching Craigslist for new or gently used items.
Consider Public Transportation
Living in an urban setting can be more expensive in certain aspects, but you may be able to cut costs in places you wouldn’t be able to in a more rural area. One of the top costs to cut could be transportation. Depending on where you decide to settle, you may not need a car at all. Not owning a vehicle gets rid of car payments, gas, maintenance, registration, insurance and parking fees–saving you a huge amount of money each month.
Stick to Your Budget
And lastly, whatever you’ve decided to do to make living in a high-cost area work for you, make sure you stick to it. Make a plan before you commit. Leave a little wiggle room for adjustments when you first arrive, but be sure to stay pretty close to your budget each month so that you can live your retirement restfully and without added worry.
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