How to Retire on Little Money

Retirement Fund

To know how to retire on little money is a skill that can be perfected. It is a known fact that Americans are hopeless when it comes to saving money towards retirement. They shouldn’t be completely blamed for this lack of thinking ahead, there are many reasons that might have prevented them from contributing to a fund or putting some money aside regularly. So this article is intended to explain how to retire on little money, just how I did it only a few years ago.

No matter what the reasons may be, there is still a number of people who refuse to adjust their spending habits. But not to worry, there are options within reach for those who have not been able to build a sizable nest egg towards their retirement.

Therefore a large number of Americans have saved nothing for their old age. They simply don’t know how to retire on little money. According to surveys, about 33% of the 30 to 49 years old have not saved a dollar in view of their retirement, and 26% of the 50 to 64 yeas old group are in the same situation. As a matter of fact, we see that 14% of people aged 65 and older have no savings at all.

How much do you really need to have saved to retire?


The answer totally depends on your personal circumstances, but we are generally told that we should aim to save $1 million at least. Obviously, not many Americans will attain such goal.

How to retire on little money?

Fortunately, nowadays there are efficient financial actions you can take to help make up for this lack of savings. Let us have a look at 3 options that can help you to accumulate your million-dollar nest egg.

1. Postpone your retirement age

The first option is one that most people will immediately think of, but it is also the one comprising the more risks. By delaying retirement you can help improve your finances and at the same time secure larger Social Security payments, but by working longer, your future health situation and job opportunities will diminish.

Unfortunately, many Americans seem to depend on this solution. It is sad to hear that about 37% of Americans with incomes between $25,000 and $100,000 say that they will never retire and will work until they are either too sick or dead. On top of that, working longer might also reduce health care expenses when retired.

2. Do away with all your debts while in activity

It is obvious that having less expenses in retirement will reduce the necessity to maintain an extra income. Rather than concentrating your efforts on small savings such as stopping to buy your daily papers or canceling your premium television channels, take more drastic actions such as reducing the largest bills first to attempt to retire debt free.

Do you really still need this large house with the attached mortgage? Housing is by far one of the largest expenses we have during our life. If you are serious about giving your retirement a financial support, live in a home that you can better afford, not something to impress your friends. With less unused bedrooms you will sleep better knowing already that you have an extra chance to arrive to your retirement free of your mortgage. By not having a $200,000 mortgage when you retire, you will save at least $1,000 in monthly payments. If you prepare yourself to plan long term ahead, start making extra payments each month on your existing mortgage to finish it off earlier in order to save money on the interest.

Brand new cars and auto loans are some financial killers. It is quite the burden for a retiree with little or no savings. You can buy a reliable used car for at least half the price of a new one.

How to Retire on Little Money

Working from home when retired.

3. Consider working from home

When you retire your first thought will be that you will finally have the time to do what you always loved doing, such as travelling, constructing cute bird houses, gardening, or whatever. But spot the mistake, you might now have the time and freedom to finally live your dream, but not having the sufficient income to do so.

So you will need to learn how to retire on little money, and find a way to make money from home during your spare time while not biting on your well deserved free time.

Unfortunately when working at home there are many possibilities that sound appealing. But are not all that legitimate to say the least. Often all they want is to separate you from your hard earned savings. According to a recent survey by the “Investor Protection Trust”, as many as one out of every 5 citizens over the age of 65 has been the victim of a financial scam.

​I therefore encourage you to carefully research any business and more especially those that require a large registration fee. Check on Google the company and see what other people are saying.

How to avoid work at home scams


  • Never give your personal information like bank details and Social Security to anyone you don’t know. This is one way that scammers get information for ID fraud.
  • Find out the physical location of the company: address, phone number, name of the CEO. Their mission statement, then you can use Google Maps to verify their location. Be wary if you only see a PO Box for the address.
  • Do not pay for information on the product or service offered. If they ask you to pay for various items for you to start, it is probably a scam.
  • Keep well away of organizations that offer to send you an “advance” on your first paycheck. They just want to get your bank details to use that for various scams.
  • Don’t accept any offers that requires you to make minimum purchases on a regular basis.
  • You can check with the Better Business Bureau if that particular company is legit. If the company is local ask for a street address and go and pay them a visit.
  • Refuse to take on a job on-the-spot without being able to do your research.

In conclusion


How to Retire on Little Money

My # 1 recommendation!

Do not assume that all online businesses are based on scam. Fortunately, there are many totally legit businesses on the Internet offering to hire your services in exchange of some money. Sometimes a good weekly or monthly income.

I have been earning online since 2001. Obviously, scams are not alien to me, I fell in their traps many times, and it may happen again. Scammers are always looking for a quick hit and run, and are getting more and more clever at doing that. With time, I have learned how to retire on little money and tested many online businesses and kept a few that I am recommending on my “Highly Recommended” page. Any of them listed there are not only safe to join, but can also be very lucrative.

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Thanks for reading


Easy to Retire

I hope that this article brought you a few ideas on how to retire on little money and that you are prepared for it. If you have any other tips on the subject we would love to hear from you. And, if you have any questions, please use the box below and I will respond as soon as possible. If you enjoyed this article please share it socially and leave a comment below, I will highly appreciate it!

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10 comments

  • Sameer khan

    Yes, Every thing you Highlight in the article is fully correct, If people get retired before proper planning of future Then it’s a big thing to scared for them.

    Everything you mentioned is Really worth & helpful Thanks for sharing

    Reply
    • Thanks very much for visiting my site Sameer, I do appreciate it very much. I see that you are also a member of Wealthy Affiliate, and a master blogger, well done.

      I wish you the very best with your online venture and I look forward to seeing you around.

      John ツ

      Reply
  • Yunus

    It very useful information,I learned a lot!

    Reply
  • Warren

    Really love your article, John. So many people look at how to make money to have in retirement, but you hardly see anything about having more money by spending less and getting rid of your debts. When you are debt free, you are really beholding to no one, except the tax man. It would be a lot more reassuring to start a home base business without the stress that debt brings. Well done.

    Reply
    • John

      That’s right Warren. The problem I see a lot of the time, if not most of the time, is that people decide to start a business online once they are totally drowned in debts and stressed because of that. As they see their retirement time approaching, knowing that their income will dramatically be reduced, and that their debts are still increasing because of the interests, they panic. 

      What I suggest to them when they come to me for advice is to start an online business with a company that has a proven track record and a reputable training program (such as Wealthy Affiliate) while they are still earning, then program a debt repayment plan, and stick to both till retirement, or beyond if necessary.

      Thanks for your comment Warren and I wish you the very best.

      John ツ

      Reply
  • Austin

    Great article! I have been listening to Dave Ramsey which has inspired me to be preparing at an early age for retirement so I can retire when I am ready and be in charge of my finances. I love that you are giving people ideas for helping them retiring in a proper manner. I love the added part of avoiding work at home scams. I know that is a problem in out society.

    Reply
    • John

      Thanks for your comment Austin and I hope that you are wisely following the recommendations of Dave Ramsey who also wrote several interesting books on personal finances.

      I look forward to seing you here often and if you have any questions please ask them here and I will respond as soon as possible.

      John ツ 

      Reply
  • Neil

    I think the English aren’t that great at saving money for retirement either lol. But then again, inflation, reduced working hours, and lack of job security don’t exactly help.

    So, I think the only and best option to truly escape debt and create financial freedom is to start up a business and put every spare hour into building it for a full-time monthly income.

    Thanks also for the help with avoiding scams, and I will certainly look into your online business recommendations page.

    Neil

    Reply
    • John

      Thanks for your input Neil. You are quite right about who is better than the other at saving money. I lived both in the UK and the US and in both countries I have been amazed how it was easy to buy on credit and how I could get all the credit cards and loans I wanted at any time. If I compare that to France, where I live now, and had my bank account in the same bank for the past 50 years I can only use my credit card by making sure that it is fully paid off by the end of the month. When I wanted to buy my last second hand car, it was hell to get a loan for it.

      Anyway, yes, quite right again, it is best to invest time into your own business so that the money you earn is yours and you are free to use it as you wish. You probably know that Wealthy Affiliate is the online business that suites both newbies and experienced marketers.

      I wish you the very best for whichever online venture of are involved with.

      John ツ

      Reply

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