All of us know that we need to be saving money for retirement. The thing is, the situations we face on our daily lives can make focusing on the future a bit difficult. This is especially true when issues that are more pressing – like paying off debt, come into the picture. However, news reports keep highlighting consequences for people who didn’t manage to put enough aside for retirement, and this makes it even clearer that we need to start saving early.
Make sure that you and your partner have the retirement talk so that you both are clear on the plan and what is being done to save for retirement. This shouldn’t be done without both of you being on the same page.
What happens if you didn’t have the talk and you didn’t start saving for retirement early enough? Let’s take a peek at a few things you can do when your retirement savings just aren’t enough.
Reverse Mortgage
Some of you reading this might be wondering “what’s a reverse mortgage”? This is a way for retirees who might be strapped for cash to achieve their financial goals. This type of mortgage is also known as an HECN – or Home Equity Conversion Mortgage – and it allows people aged 62 and older to borrow money against the equity of their home. The loan is not to be repaid until the borrower either moves out of the home or dies.
That being said, you do have to pay the loan origination fees, and continue to pay the taxes and insurance for the home as well as keeping up with home maintenance. The money you get from a reverse mortgage will be available in three ways: a lump sum, a monthly stipend, or a line of credit.
Related: 20 Types of Loans Can Help You Help in Trouble
Blog About It
Blogging can be monetized if you do it right. All you need to do is find a website that is reliable, professional, and safe. One such website is WordPress. Most of the paid bloggers might tell you that your main goal shouldn’t be making money, but to be writing about what you love.
Once you have the website and have found a template for your blog, you should plan it out. You need to have a clear idea of what you will write about and who it will be geared towards. You also need a name for your blog. Then, start writing and be patient. This is not a scheme to get rich quick. It takes time and a lot of work. You can be successful if you continue to work at it and can get the audience.
Make a Living from Playing
You might not want to work because that goes against everything you worked so hard to retire for. That being said, you might get a kick out of things like spending time with animals, woodshop, cooking, or any number of things. Now, all you need to do is find a way to monetize those things that you love. Believe it or not, there are ways to get paid for nearly anything these days. For example:
- Istockphoto and Shutterstock pay people for taking pictures.
- Vayable pays people to be tour guides for visitors when they come into the area.
- Etsy is a great site for selling goods that are handmade.
- Feastly and Mealsharing allow people to sell their home cooked meals.
- Zaarly and TaskRabbit give people a site to sell their services – such as running errands, being a handy man, gardening, house cleaning, etc.
- Rover and DogVacay are for people who want to be dog walkers or dog sitters.
Downsize for Retirement Savings
If none of the aforementioned options appeal to you, you might want to consider downsizing. This will both harvest the equity you have in your home and reduce costs.
Downsizing means that you will sell your home and either rent or purchase something that is a bit less expensive. This might be a smaller home or even a place in another community entirely. You might even decide to hardcore downsize and find a tiny home. These homes are mostly around 500 sq. ft. or less and can truly simplify both your finances and your lifestyle. These are becoming increasingly popular for retirees.
