How Your Home Can Help You Retire
Nearly everyone thinks about retirement, and sets a goal to start saving more. Maybe you have even decided to skip your caffeine fix at your local café every morning to set that money aside. Making a conscious effort to save more is great, but you can build that nest egg faster by putting a few of these suggestions to use.
Have Your Home’s Value Assessed
Many people who haven’t had their home assessed for a very long time end up very disappointed and surprised to learn the value has decreased. This is especially troubling for those who have been paying far more than they should have in property taxes. If this sounds like you, have it appraised. It doesn’t make sense to keep your home’s value listed high if you are not selling in the near future.
Create a Second Job
Notice how it says “create” a second job? This is because you are going to create your own business out of your home. You can do anything from starting a small catering service to offering babysitting in your home. Put this money directly into a special account separate from everything else.
Take in a Tenant
If you have a finished basement, loft over the garage or even an extra bedroom inside your home, renting it out can bring in a fair amount that can be put toward your retirement fund.
Welcome Tourists
Do you live in a touristy city or near a major attraction? Consider welcoming short term guests. You don’t have to turn into a full blown bed-and-breakfast but even booking your extra space once or twice a month will earn more money than you had before.
Reduce Utility Bills
Utilities can really increase your monthly spending. You may be saying you have brand new windows and you always shut off the light when leaving a room, so you’re doing everything you can already. Well, you could also look into solar panels. Some companies will let you sign a contract so you don’t have to pay for them upfront. They may even install for free. Select energy providers will also offer a lower rate to customers taking advantage of this option.
Focus on Your Mortgage
There are two ways your mortgage can secure your financial future. First, if you pay extra every month, you will pay it off faster, thereby saving you interest. Alternately, you can refinance for a lower rate and put all the money you are saving into your retirement fund.
If you are like many others, you have a long list of places to go and things to do when you retire. This may not be possible if you don’t take steps to secure your financial future. Your home is your greatest asset; you may as well put it to good use.