For many Americans, living on $45,000 a year means retirement This means that his income has decreased significantly compared to when he was active. The average income in the United States is $1,100 a week, or $57,200 a year, according to the latest data from the U.S. Bureau of Labor Statistics.Annual Severance pay $45,000 is about a 20% cut, but it’s hard enough financially even if you don’t want to live like the wealthy.
However, that doesn’t mean it can’t be done. It requires the right strategy.
The first thing you need to do is find a good place to spend your $45,000. This usually means avoiding large coastal cities with a high cost of living and moving to a city where you can afford less.
To find out where the cheapest retirement savings are, check out recent GOBankingRates We analyzed and ranked the 100 largest cities in the United States based on the annual retirement income needed to cover basic expenses., including housing, medical care, groceries, transportation, and utilities. Cities were also ranked on the basis of ease of living and were only taken into account if the proportion of elderly people in the population was more than 10%.
Toledo, Ohio came in first place because of the low annual expenses required to live there ($37,645). The overall cost of living in Toledo is 27.8% lower than the national average, making it a good choice if you want to live well with a $45,000 annual retirement savings. Other affordable cities include Cleveland, Ohio. Memphis, Tennessee. Fort Wayne, Indiana. and Lubbock, Texas.
You’ve retired in an affordable town or city… now what?
Once you have a place to live that you can afford, use the extra money, especially credit cards, to pay off your debts. Paying these off will leave you with more money in your wallet each month and allow you to live a richer lifestyle.
Similarly, you should also: eliminate unnecessary expenses. For example, if you have a second car, consider selling it. This not only brings in extra money, but also waives maintenance, repairs, fuel, and (if applicable) car loan costs. Most retired couples can now live with just one car and no longer need to drive to work. If you live in a place with plenty of public transportation and ride-sharing options, you may be able to get by without a car at all.
Another way to live well with your $45,000 in retirement is to keep it invested. This will help ensure that the money you have continues to grow. For best results, consider the following: hire a financial advisor Who can help you find the best place to keep your money and reduce your risk of getting scammed?
Even if you are hesitant about investing in stocks, why not consider investing in real estate or small businesses? One way to get exposure to real estate without buying it yourself is to invest in real estate. real estate investment trust. REITs are companies that typically own income-generating properties such as shopping centers, apartment buildings, and industrial parks. Some pay regular dividends.
Finally, retirement is a great time to take advantage of discounts. Especially since many of the discounts are aimed at seniors. Get discounts on everything from retail and restaurants to travel, groceries, and entertainment/recreation. If living a wealthy life means traveling and seeing shows, then even a $45,000 annual retirement plan can be discounted and affordable.
This article was first published GOBankingRates.com: How to live richly with $45,000 in retirement savings