Author’s Bio: RP is a community writer for debt consolidation care, the world’s largest debt consolidation community. Being a mom of two kids, she excels herself in writing articles on various financial topics including debt consolidation, debt settlement, frugality, get out of debt, and more.
It is essential for you to plan your retirement much before you retire. It helps you lead an organized and stress free life. Retirement planning is the process of saving money for your life after retirement. But as the cost of living is getting higher day by day, it is becoming impossible to save money from your daily expenses. Still, in order to have a secure future, you should try to save extra money from your daily expenses. This can be done if you practice frugal living.
Frugal living is better money management with lowered expenses. Frugal living does not mean that you will have to give up all the luxury and fun of your life. It is just a systematic way of saving your money for your future.
Planning your frugal living before retirement
You should plan and practice frugal living much before retirement.
- Save money on everyday items – You need to save money on your everyday expenses. You can use discount coupons and buy items on sale. If possible refinance your loans and negotiate repayment plans with your creditors.
- Prepare a budget – Prepare a budget for your living and stick to it so that you can save some extra money. Budgeting helps you in spending your money in an organized way. Thus, you are able to expend less and save more.
- Relocate – If possible you also relocate to save some more money before retirement. Some states and places are more expensive than others. The cost of living varies according to the place you live in. So, try to find out a place suited to your lifestyle but less expensive.
- Lower the usage of credit cards – Use fewer credit cards. As you buy more using your credit cards, the debt amount goes on increasing.
- Save on gas – You will be able to save some money on gas if you change your motoring habits. Avoid warming up the engine for longer periods or starting and stopping the engine for several times. It is advisable to buy gasoline either early in the morning or in the evening when the weather is cool as gasoline remains dense in cold weather. Such small savings help you in saving large amount of money.
- Stop impulse buys – Before going for a shopping make a list of the items that are required and avoid buying things simply because you have liked it. Just as small savings add up to a large saved amount, small extra expenditures can add up to the amount that you have spent. Thus, it is better to avoid impulse buys.
- Get help from frugal living experts – You can get help from financial and frugal living experts who can help you in planning your frugal living in a more organized and methodical way.
Open a savings account and put all the extra money into that savings account. Don’t withdraw money from this account for years. Thus, you can see that frugal living is wise spending of your money without totally giving up on good living.