Downsized And Retired: How To Save Money After Moving To An Apartment

Every day across the country, over 10,000 people reach the retirement age of 65. When you’re retired and living off of your savings, you’re well-aware of how important it is to balance your priorities and save money when you can.

Fortunately, if you’ve already downsized from your home and moved into an apartment, you’re already well on your way to making your money last longer. But how can you stretch your retirement funds even more and keep your cash withdrawals to a minimum?

Here are a few ways you can save on retirement funds after downsizing to a new rental.

Budget your living expenses the right way

There’s a reason why so many people choose to retire in Florida. The average sales price for a condo in Manhattan was $1.9 million in the third quarter of 2017.

That being said, it’s important that you budget correctly to ensure you’re living in an apartment you can realistically afford. Real estate database company Zillow offers a rent affordability calculator to determine how much rent you can afford based on your monthly net income. You want to stick to apartments that are approximately 33 percent of your monthly income.

Adjust your thermostat to save on energy

You have less control over the types of changes you can make in your home when you’re living in an apartment compared to living in a house. But that doesn’t mean you’re completely powerless when you’re trying to save on energy costs.

Adjust your thermostat periodically so you’re only using the energy you need when you need it. If you have access to your HVAC system, it’s also recommended to change your HVAC system air filters at least once every three months to ensure maximum efficiency.

However, avoid using gas-powered space heaters to reduce your electrical costs. While natural gas is the second most heavily consumed energy source in the nation, gas-powered space heaters can easily become a fire and carbon monoxide hazard.

Invest in a sleeper-sofa instead of a two-bedroom

It can be tempting to invest in a two-bedroom apartment when you know your kids and grandkids will be coming to visit. But two-bedrooms apartments are often hundreds of dollars more expensive than one-bedroom apartments.

To save your money while still giving your loved ones the comfort of a cozy place to sleep while they visit you, consider investing in a sleeper-sofa to have in your living room instead. This way you can still pay the price of a one-bedroom apartment while helping your loved ones save money on a hotel room, too.

It’s no secret that you need to take special care of your retirement funds now that you’re officially unemployed. The good news is, by following the tips above, you can reduce how much you spend every month to stretch your retirement savings as much as possible.

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