Cutting Costs In Retirement

Living in St. Petersburg, Florida and surrounding areas where retirement living is popular can be an expensive prospect, depending on your circumstances and your needs. However, almost anyone would agree that if you can reduce housing costs while still enjoying your retirement, you’ve achieved a valuable freedom, whether those savings go to daily expenses, travel, or building your legacy for your children. Here are some ways that you can bring your costs down without giving up the comfort and fun of your retirement. 

Consider Downsizing Into a Smaller or Less Costly Home

Smaller or less costly homes may feel like a step back from your larger-home days, but remember that the key is what you actually want to be spending your time and money on. If you can pay for less lawn care and spend less time cleaning a large house, you’re creating savings even before you factor in a less expensive home’s price. Selling a larger home and downsizing, including to a condominium or other multi-family housing, can make room to spend your time doing what you really want to be doing. 

Consider Long-Term Rental Options for Part of Your Property

If you want to keep your larger property, think through how having a renter could benefit you and your family by offsetting housing costs. Renting one bathroom and one bedroom to someone else can give you a steady source of income all while using a portion of your home that might not be in use at all at this point anyway. One of the ways this has played out well for some folks is by renting to a family member who could use an affordable place to stay and whose company you appreciate anyway. Of course, it’s good to lay out any expectations for duration of stay and use of shared spaces ahead of time, but the savings and companionship can be substantial.

Renovate For Short-Term Rentals if Your Market Can Sustain It

If your neighborhood allows for short-term rentals, small renovation projects can turn part of your home into an Airbnb or VRBO option. If you have land, choosing to build a tiny home or rent out space for camping can all create additional revenue streams that help you reduce your overall housing costs by turning your home into an income-generating asset. 

Consider How a Retirement Community Would Protect Against Other Costs

While retirement communities often are more expensive than living in a home that isn’t associated with a community, you have to evaluate the move based on what the community provides. If the community provides social activities, transportation, housekeeping, or on-call medical assistance and those are things that you’d want anyway, the overall rate for living there may be worth what you’re getting in the process. Of course moving to a retirement community can mean different things depending on the kinds of care and support you want or need, but this option should be considered if housing costs and the work to maintain a home are becoming prohibitive in anyway.