According to the U.S. Census Bureau, about half of Americans ages 55-66 have no retirement savings at all. If you’re one of them, you’re facing an uphill battle as you look toward life beyond your earning years — but you already know that.
Make Every Dollar Count — and Count Every Dollar
If you’re retiring without a retirement fund, your success or failure will depend on two words: frugality and budgeting.
“Being frugal is not the same as being cheap,” said Fluent in Finance founder Andrew Lokenauth, an investing and banking professional. “Being frugal is prioritizing your spending. You need to know the difference between needs — food, shelter, utilities, basic clothing, healthcare and transportation — vs. wants, like entertainment, vacations, dining out, the newest tech and electronics, designer clothes and multiple streaming services. Create a budget to track your spending in order to figure out where your money is going and how you might be able to better allocate it.”
Downsize Your House — and Your Life
If you own your home but haven’t been saving, there is some good news. You actually have been saving — and now might be the time to cash in.
“By selling your large home and expensive car, you can free up some cash to help cover living expenses in retirement,” said behavioral scientist and money coach Erin Papworth, founder of the fintech startup Nav.it. “Start with your house. If you own a large home, it may be time to downsize to something smaller, more manageable, and more cost-effective. Not only will this save you money on your mortgage or rent, but it will also reduce your maintenance and utility costs.”
