Due to the millions of dollars that was lost in the recent recession, many people closing in on retirement are needing to know how to retire with no money. Though it is difficult to do, you can still retire with no money if you start preparing yourself now. Here are the steps you need to take in order to retire when you do not have any money.
- Create a budget. If you are going to be retiring with no money in your retirement savings, you best bet of retiring with no money is a budget. Write down expense you have and any income you think you will get after retirement. Thinks like income from rental property, disability, social security and any retirement benefits you might have from your current job should be included in that income. Most likely, these sources of income will not be able to cover all of your expenses. If this is the case, you need to start thinking about what you can do to make money after retirement.
- Find a way to earn income while you are retired. Though most people feel that retirement means you will no longer be working, many people actually continue to work and earn money after retirement. Since you are retiring with no money, you are likely going to need to become one of these people. So, find a way to make money doing something you love. Retirement is about spending time doing the things you were unable to do while you were working. If you want to travel the world, write about your experiences and take photos to sell and make money. Just make sure that you enjoy what you are doing so you can still enjoy retirement.
- Save as much money as you can immediately. Just because you do not have anything saved to retire on yet does not mean you cannot get something saved before you turn 65. Start cutting down your expenses every place you can to start putting money in a high yield savings account. Even if it is only a few thousand dollars that you save over the next 6 months, that is still something that will help later on. If you are having trouble getting motivated to save for “retirement”, then think of this savings account as an emergency fund.
- Sell items that you do not need. This is a great way to give those savings a huge boost. Start selling furniture you will no longer need when you downsize your home, sell that car you never drive and anything else you can part with. Then put that money into your retirement fund to help you out after you retire.
- Reduce your living costs. You are going to have to do it anyway once you retire, so go ahead and start cutting back on everything you can. Get rid of your pricey apartment or large mortgage and downsize to something that will be just enough for your basic needs. Then start cutting down your cable, internet, phone bill and anything else that you just don't need. Then put everything you can save in that savings account until you retire. Just make sure you start working through these steps as soon as possible to you can be ready to retire even with no money.