Let’s face it, the cost of living is eating away at all our budgets. Everything seems to be going up except for our salaries. It is difficult to save enough for retirement, but we can take a page from the retirement book. 

Retiring signifies a stripping down of unnecessary baggage and making life simpler. This also includes cutting down on expenses. If we emulate this mindset in our current excessive-spending professional lives, it might free up more cash, which we could pour into our pension savings and in turn, have a retirement that we dream of and not dread.

Lessons from retirement

• Cut the everyday frills – these are luxury services that we often take up out of laziness or lack of time. Do you really need them, or can you do without them? The extra money spent on these can make significant improvement in your retirement savings. These could be services such as dog walking, cleaning, dry cleaning, morning coffee at a deli, magazine and tv subscriptions etc. I’m not saying cut out all your luxuries. Do you need the maid 5 days a week or can you cut down and wash your own dishes every other day? Taking a flask of coffee with you will stop you getting your $10 latte every day. 
• Compromise on hobbies, sports, and extra-curricular activities - Do you need to be a member of every hobby group around? Must you have a membership to the golf club, soccer club, rowing club and decoupage club? Must your kids take part in ballet lessons, tennis lessons, karate, and soccer? It is important to pursue your hobbies and favourite activities but maintain a balance. Focus on the ones you do the most and subscribe to them. If you only partake in some twice a year, is it worth paying the membership fees when you could pay only when you play?
• Let your children pick a favourite sport and hobby and stick to it. The monthly savings on these alone could greatly increase your retirement.
• Be smarter when you shop for groceries – Make sure you budget and have a list of what you need. Plan your meals in advance and you won’t have unnecessary wastage. Also, eating out every day for lunch could add up to a lot. Make the time to pack lunch from home. You will be surprised how much you spend on these items alone.
• Think logically when buying a car or home – Think long term. I know it can be love at first sight when buying a new house or car. Emotion plays probably a bigger part than you care to admit. Try to distance yourself and think of the long-term expenses involved e.g. A thatch cottage seems like the ideal romantic country retreat, but remember the rethatching that needs to be done every few years. Older properties have more charm but need more maintenance. New properties are immaculate but cost more and don’t forget levies if it is in an estate. Remember the fancier the car, the more it will cost to maintain and service. Think of these costs when buying.

By following these simple and practical “retirement mindset” downsizing tips, you could be saving thousands every month. All this extra cash could be saved to ensure you have that dream retirement lifestyle you always hoped for. 

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above