Yahoo Finance 5 Proven Frugal Strategies for a Low-Cost Retirement Relocation
Planning for retirement and dreaming about a move? Maybe you’re no longer tied to an area for your job or you simply want to experience what another city has to offer. And if you’re moving to benefit from lower costs of living and lower taxes, rest assured you’re not alone.
Read More: 6 Ways To Lower Expenses in Retirement While Still Living a Luxury Lifestyle
Check Out: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Inflation has many seniors searching for new places to enjoy their retirement. Whatever your reason, moving is an additional factor that can deplete your savings and impact your budget — but it doesn’t have to be expensive. Here are five strategies for making a low-cost retirement relocation.
Wealthy people know the best money secrets. Learn how to copy them.
Choose the Right Place
According to The Motley Fool, in 2024, the 10 most affordable states to retire in are Mississippi, Oklahoma, Kansas, Alabama, West Virginia, Georgia, Missouri, Iowa, Arkansas and Tennessee, in that order. This ranking is based on a range of considerations, including the costs of living — housing, utilities, health care — as well as retirement incomes and tax-friendliness.
You’ll likely fare better moving to one of these Midwestern or Southern states than you might in the Northeast and on the West Coast. Likewise, it’s best to avoid Hawaii, Washington, D.C., Massachusetts, California, New York and Alaska if you’re hoping to relocate and live on a budget.
Discover More: 16 Best Places To Retire in the US That Feel Like Europe
Cut Your Transportation Costs
If you have two or more cars, you can reduce monthly costs by selling one. Alternatively, you can replace one or more of your vehicles with a cheaper one.
If you want to go extra frugal and reduce your impact on the environment, consider going carless and opting for public transportation. Whether a bus or a bike, you’ll cut out car payments, car insurance, gas and maintenance costs from your monthly budget. When selecting your new home location, choose a place with access to public transportation or within walking distance of your needs.
Choose a Smaller Home
As you transition into retirement, you may need less space or even prefer a smaller home that requires less maintenance. Moving to a small or tiny home can save money in mortgage payments, insurance and maintenance costs, in addition to simplifying your day-to-day responsibilities.
If you want to take this a step further, experts point out that renting a home saves you property and maintenance costs. That said, this option isn’t for everyone, as you run the risk of rent increases and eviction and won’t have the ability to earn equity or make certain home improvements.
Sell Things You Don’t Need
There are some things you have that you can sell because you don’t need them anymore. This can be a fairly easy decision when it comes to selling your old work clothes, which likely won’t have any real sentimental value.
You can sell them online or have a yard sale. Items like toys, baby clothes and other used items might be more difficult to sell, but if you decide to do so, you’ll lower your retirement relocation costs. At the very least, consider donating items to reduce what you have to move.
Use a Moving Company That Specializes in Small Loads
Using PODS containers instead of rental trucks, you won’t have to drive your boxes to the new location or pay extra for gas and mileage. PODS and similar services can save you money as they handle the moving container after you load it yourself. Plus, you can load and unload the units on your schedule and opt for long-term storage if necessary. A long-distance move might be around $1,000 by using PODS while using a traditional mover could cost $5,000 or more.
More From GOBankingRates
In Less Than a Decade, You Won't Be Able To Afford Homes in These 20 Arizona ZIP Codes
These 10 Used Cars Will Last Longer Than an Average New Vehicle
Trying to Build Your Savings? Make Sure Your Account Does These 6 Things
This article originally appeared on GOBankingRates.com: 5 Proven Frugal Strategies for a Low-Cost Retirement Relocation
