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But, there are some caveats that retirees might not think of before they make the move.
Some retirees who have downsized are encountering costs they didnt budget for a few years back.
GOBankingRates spoke to retirees to find out what theywish they knew before they downsized.
Even if they downsize, this can still cause a discrepancy in the budget in a few years time.
Stephanie H. retired at the age of 59 in March of 2022.
Stephanie said she wished she had budgeted in a way that left room for prices to rise.
I didnt figure in how much the cost of everything would increase.My house insurancedoubled.
My car insurance went up more than 80%, she said.
Stephanie also noted that her cell phone bill, health insurance, gym membership and groceries also went up.
I was blessed with a pension, however it will never increase, the retiree added.
Stephanie recommended that retirees really take stock of their expenses before they downsize.
Look at your expenses, write down every expense, she explained.
Are there things where you could change services?
Do it yourself vs paying someone?
Ivy S. recommended being diligent about looking into lower rates for insurance.
Im glad I changed my car insurance and saved $350 over six months, she shared.
Ivy also switched her phone service so she could save more money.
Even if thats not the case, its an important need to think about.
Ivy remarked that long-term care was something her initial retirement plans didnt budget for.
I dont need it yet, but I wish I had long-term care, she said.
It might be wise to save enough money that some can be applied tomore extensive carein the future.
Some stores like Whole Foods and Gelsons are known for having higher prices than others.
I shop at Aldis to save money on food and wine, she noted.
Make Money Work for You
Ivy used to keep money in a no-interest checking account.
This allowed her to accrueeven more moneywithout having to do a thing.
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