3 Steps To Semi-Retire Successfully

Investing & Retiring, Jobs, Retirement

By Andrea Woroch

As a new decade begins, many have their sights set on change. After what feels like a lifetime of working, though, it can be difficult to transition to a cold-turkey retirement. To stay busy and supplement income many people are “semi-retiring” instead.

Folks are leaving their traditional jobs, cutting costs and looking for more flexible, fun work. And, these days, you don’t have to look far. With the emergence of the “gig economy”, it’s easy to earn a little side cash, without having to commit to a 9 to 5 job – or even leave the house.

If your goal is to achieve a semi-retired lifestyle in 2020, follow these steps and start living out the rest of your life in freedom.

1. Downsize.

Your housing expenses are likely the biggest line item in your budget. Whether you rent or own, look at options for reducing this expense. Not only does finding a smaller house or moving into an apartment help lower your actual mortgage or payments, but you will simultaneously reduce other bills. For instance, moving into an apartment means you won’t have to spend time or money on caring for a lawn. You will likely see a big drop in utility costs as well. MoneyTips is happy to help you get free mortgage and refinance quotes from top lenders.

You should also consider trading in that new car for a used option to lower your monthly auto spend.

2. Lower recurring expenses.

With all the digital streaming services and other monthly subscriptions available, it’s easy to blow your budget on services you really don’t use or need in the first place. Spend time reviewing your monthly expenses by looking over your credit card bill and bank account for the last few months. Jot down all your recurring expenses and look for ways to reduce these fees. Cancel the subscriptions you don’t need. If you have multiple video streaming services, for instance, choose just one or two and get rid of the rest.

Look at your auto insurance policy and compare rates with competitors at sites like TheZebra.com to see if you can lower this bill. Negotiate with cable and internet providers to see if you qualify for a lower monthly rate. Get free life insurance quotes and apply for your top choice in minutes using our Life Insurance Quote Comparison Tool. Collectively, canceling and negotiating rates on your monthly services can help you save thousands of dollars a year!

3. Get a side hustle.

Although the point of semi-retiring is to scale back on work, you may need a little financial boost to make it work. The beauty of a side hustle is that you can often make extra income in your spare time, right from home. For instance, you can earn up to $1,000 a month by pet sitting from your own home via sites like Rover.com. The platform makes it easy to set up a profile and create a schedule that works for you.

You can also become a rideshare driver and pick up passengers when you’re driving around town running errands. There are many options these days to help you make extra income effortlessly in order to supplement Social Security or your retirement savings.

It’s a new decade. It’s time to create a new lifestyle. Downsize your big-ticket items, cut your monthly payments, and pick up a fun, flexible side hustle. Semi-retirement is within reach.

People with higher credit scores get lower interest rates on their loans, mortgages, and refinancing. You can check your credit score and read your credit report for free within minutes by joining MoneyTips.

Photo ©iStockphoto.com/kate_sept2004

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