Remember being in your 20’s and 30’s and having this retirement plan?
- You would have a summer home with lots of acreage.
- You would travel all the time and never worry about anything.
But then you got closer to retirement and realized you would rather not have a mortgage that large and didn’t really want the upkeep of that large summer home or boat.
So you find a retirement plan that actually makes sense for you and what you’re interested in. You prioritize what really matters most to you. A successful retirement isn’t necessarily a large pot of gold at the end of the rainbow, but it means you’re fit financially, physically, etc.
Right-sizing is a concept from Corporate America that applies to your retirement plan. The idea of right-sizing is that the surroundings fit your life, not molding your life to fit your surroundings. So how does one right-size their retirement?
Stuff doesn’t make you happy
As we’ve discussed before, stuff doesn’t make you happy. Having an excess of things in your home is not only a physical danger but can cause emotional stress. Letting your material things become a source of pride leaves you feeling you must keep up with the Jones’. Don’t spend time trying to get the latest gadget or car. It’s your lifestyle that will truly keep you happy. Try decluttering and spend time on experiences and relationships. Your happiness will increase if you put the focus in those areas.
Live below your means
You worked so hard your entire life that you probably have an idea of how retirement is going to look. If you’re going to stress yourself with paying the electric bill and mortgage, it’s time to downsize a bit. Or, as we like to say right-size. Making a small sacrifice can reap massive benefits. Not only will you eliminate the stress of trying to cover the bills every single month but you also have funds leftover to do the things you truly want.
Create a life with no maintenance
Consider living in an independent living community where they take care of things like the lawn, landscaping and snow removal. You can skip the home repairs too! It’s the perk of having a home but none of the hassle. You can maintain your independence while eliminating the debilitating chores.
More time freedom
Time saved not renovating the kitchen, fixing the AC unit or other weekly time- consuming chores means you now have the freedom to do more . You have the time to try a new hobby, travel, spend time with friends and more! Since you aren’t spending a fortune on material things, you can afford to do what you want, when you want to do it, and with whom.
You have worked hard for everything you have. There’s no reason to let retirement stress you out. Instead, create a plan that really fits who you are and what is important to you. The more you can focus on what you want in life, the happier you’ll be. The Jones’ will be just fine so no need to worry about them.