Your home is paid for, so is the car and all of your home furnishings. You realize that you will be retiring soon, and you paid off most of your debts. Now all you have to do is retire, maintain your home, buy food, travel a little and enjoy your retirement and spoil your grandkids!
The property taxes keep going up and the cost of your monthly utilities is more than some people pay in rent per month. (Especially if you live in cold weather climate)
Now that your auto is paid for, “it” has developed a “must have” maintenance habit every other month. Every month almost, something is going wrong with your car. Of course this didn’t happen while you were still paying for it! You have a monthly auto maintenance budget, which your auto has surpassed. You had no idea that auto mechanics charged so much. How could you have known, the car acted fine while you were still paying for it.
These added monthly expenses cut into your travel budget and place you in a position of always having to watch every dime. Before you retired, everything looked great, on paper. You had more income coming in than going out and according to your calculations, everything would work out fine, right?
Your first mistake (and almost everyone makes it) is that your utility bills almost doubled after you retired.
Why? Because you are home all day! If you live in a cold weather climate, the utility bill could almost double because before you retired, you were not at home, you were at work.
Suddenly your projected numbers for retirement are no longer valid. You’re not sure what to do.
You begin to think of ways to bring sanity back to your monthly retirement budget. You wonder if renting out rooms in your home would work. Of course, this would increase the monthly utility bill. But you would also receive monthly income from the room rentals. Then you wonder if you really want strangers living in your home. (You could recreate the T.V. show, “The Golden Girls.”)
You could rent out the entire home and move into a smaller apartment. But then you would need to double the insurance on your home and be ready for some serious wear and tear on your property. You could hire a property management company to screen potential renters and rent the home for you, that way you wouldn’t have to come in contact with renters.
Or, you could place your home up for sale and wait for the right buyer to come along. Of course, you could go broke paying the utility bills until you find a buyer.
Or, you could lease-option your home and require a $5000 non-refundable deposit. You would over insure the property and move offshore to an ocean-front villa for less than $700 a month. (Utilities included + Internet) (If the lease-option agreement fell apart in a year or so, no problem, you just lease-option the property again, with a $5000 non-refundable deposit! If the lease-option tenants burn the home down, no problem, you are overly insured!
Or, to avoid the huge heating bills during the winter months, you could move to Mexico, the Caribbean, or Belize, Costa Rica or Panama City with millions of other Americans and Canadians, for the winter months. Depending on your lifestyle, you could stay south of the border for 3 to 6 months and return to your home for the spring and summer months.
The State Department says there are over 6.4 million Americans living offshore. There are hundreds of thousands of Americans in Mexico and the Caribbean who are living well on less.
To learn more about affordable retirement options visit Forgot to Save Retirement.com
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