How to Manage Your Money when Living Alone
By James Ritter
Since the onset of the COVID-19 pandemic, it’s thought that 43% of people between 55 and 66 years old have opted to take an early retirement. Starting retirement early might sound like a dream come true, but this brings with it fresh challenges, especially when living alone.
Whether you’re retired or still working, it can be difficult to know how to manage your money effectively and still enjoy a full life. Here, we take a look at some tips for how you can achieve this more easily when living solo.
1. Plan ahead
Planning for your future is always smart, but sometimes the unexpected happens and you might be alone and struggling to handle your finances. This tip is more practical and immediate – when it comes to money management, planning your meals is a good place to start.
Ensuring that you know what you’ll be eating for the week will not only help to reduce food waste, but also limit any wasted spending.
2. Assess your bills
While it’s no secret that our energy bills have shot up in recent times, it’s still worth checking them from time to time. Sending your readings to your energy company ensures that you’re paying the correct amount.
Not only that, but if you notice a spike in your energy bills such as your water rates, this could point to something being wrong with your system. This can be an easy fix that can help you to not lose money.
3. Consider downsizing
If you have always lived in a larger home, then it can be hard to think about downsizing to somewhere smaller. However, making the move to a smaller home can reduce your energy bills and overall utilities, as well as reducing the amount of maintenance you’ll need to carry out.
4. Look over your expenses
Most of us go through life in a familiar routine – but when you’re looking at money management and living alone, you may want to take a closer look at your expenses.
This can be something simple like subscriptions you don’t want to keep anymore, paying too much on a phone contract, or paying tax on a car you no longer drive. All of the small expenses add up, so you could really streamline your spending by making minor changes.
5. Check your benefits
As well as your work and state pension, as you approach retirement age, check to see if you’re eligible for any other kinds of support or relief due to living alone, or another factor.
Such allowances can vary due to your individual circumstances and where you live. These might only be tiny amounts of money weekly, but they all help towards a more balanced financial life that allows for fun and enjoyment as well as practicalities.
While the thought of retiring can be difficult for some, financial concerns are something that can be dealt with practically. Following these tips, and accessing high quality guidance on how to live independently could be the first step to a happy and healthy retirement.
Bio: James Ritter
I am a digital consultant with a particular interest in financial services, and have advocated for content about money management in retirement. I majored in creative writing in university, and am always eager to expand my knowledge around different subjects.
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