I used to think about retirement as a time when you get to live luxuriously and spend all of the money that you spend so many years saving. As my dad got closer to retirement I got scared because I knew that he had not saved alot of money. I knew that he had spent all of his money on us, his kids. I wanted him to come live with my so that I could give him a comfortable retirement. He wanted not part of this. Instead he chose to live frugally and he is very comfortable and happy in his rent subsidized apartment in NY where he doesn’t need a car or alot of necessities and always has something interesting to do.
The closer I get to retirement, the more frugal my future plans become. Of course part of this is because you become more realistic about how much money you will have the closer you get. The other part is because I realize that things are not going to make a good retirement. It is going to be company, activities and being able to follow my passion that is going to make my golden years truly golden.
With that said, I am mentally planning for my retirement:
First of all, it is going to be A LOT SMALLER than the house I am currently living in. From living in very large house, I have come to realize that I don’t use half or more of my space most of the time. I could easily move my entire family to a house half the size right now if I had to. For this reason, I know that I am downsizing dramatically for my next house purchase (my retirement home). I will very likely move into this home 10-15 years before retirement to save more money and pay it off quicker. In addition to moving into a smaller home, The frugal retirement living website suggests living on a sailboat, living in an RV, or living overseas for a frugal retirement.
I plan to live a simple, uncluttered lifestyle, that I am beginning to train myself on now. Less stuff means more usable space in the home and also less expense in buying things you really don’t need.
I plan to work, but not necessarily for money. I certainly won’t turn money away, but during the retirement years, any work I do will be more for enjoyment and passion than money. Since my home will be paid for, I will be able to use my income to pay for my day to day expenses and save my retirement money for travel and emergencies.
I plan to continue living based on frugal principles so that I will have more money in the bank for retirement.
Seeing my Dad’s example of living comfortably on not a whole lot of money makes me relax a bit about having to have millions of dollars saved up so that I can live a live of leisure after I retire. I am happy to be more realistic about what I will do with my time and money after I am officially no longer in the job market.
This does not mean that I am not saving as much as possible for the future. You don’t have to be broke to live frugally. I still plan to travel and hope to have no trouble paying for health care and other necessities.
~Andrea Hermitt writes for parenting (specifically teens), the home blog, and also the frugal blog, and homeschooling at families.com.
The Frugal Benefits of a Small House
12 Ways Staying Home Saves Money
by Mary Ann Romans