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As a Gen Xer, can you live on $4,345 a month after retiring?
The average retiree obviously makes it work.
But elsewhere in the country, you could live a comfortable life.
Cut Housing Costs
Whether or not you move, get creative in cutting your housing costs.
Of course, you’ve got the option to pay off your mortgage before you retire.
Paying off your mortgage requires plenty of money, however.
Consider house hacking to trim or eliminate your housing payment.
Or you could get even more creative and rent out storage space or parking space.
You could rent part of your property on Airbnb or the entire property when youre not using it.
According toAAA, the average new car costs $12,182 per year to own, operate, and maintain.
A single car would eat up $1,015 of your limited $4,345 budget!
And most married couples each have their own car.
Plan to stop hemorrhaging money on cars in retirement.
Look into moving to amore walkable neighborhood, where you could potentially live without any car at all.
Before you dismiss the idea, consider that my wife and I havent had a car since 2019.
And, of course, drive your existing car as long as possible.
You wont pay a dime on taxes when you withdraw the funds in retirement.
That means you wouldnt have to dilute your modest budget even further to account for Uncle Sams take.
Prioritize Health
Healthy retirees can bathe, shop, and cook for themselves.
They can clean their own homes and mow their own yards.
That math isnt pretty.
In-home nursing care costs between $1,000 $4,000 per month, according toNurseNextDoor.com.
Average homemaker services cost $5,720 per month, and average home health care aides cost $6,292.
Take better care of yourself to minimize the risk of draining your budget on in-home support services.
Exercise every day, eat more vegetables and healthy proteins, and minimizesugar and alcohol.
You know what it takes; now you just need to do it day in and day out.
Almost anywhere else in the world.
Dont rule out retiring abroad, especially in the first few years of retirement.
And if you get homesick, you could always move back to the States.
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