How Retirees Are Stretching $10,000 in Savings Further Than You'd Expect

Some nest eggs last longer than others, but if you’re creative, you can get a lot of mileage out of your portfolio. If you have only $10,000 in retirement savings, cutting big expenses like housing and looking for ways to trim some of the smaller items in your budget can free up more space in your monthly budget.

If you remove enough costs, your Social Security checks may be enough to fund your lifestyle. Here are some of the avenues retirees are using to stretch their portfolios, especially when their savings are small.

House hacking

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House hacking is a popular strategy that involves buying a duplex, living in one unit, and renting out the other. Young professionals use this strategy to get into housing, and retirees are also using it to manage their expenses.

However, retirees don’t have to resort to a duplex. Some people are listing spare rooms on Airbnb and generating passive income.

The great thing about using platforms like Airbnb is that you can customize availability based on your schedule. For instance, you can make bookings unavailable for the week you want to take a vacation. House hacking with a duplex doesn’t provide that option if you want a long-term tenant.

You can block out certain days, weeks, and months when using Airbnb and similar platforms to list a room in your home.

Downsizing

Downsizing comes with fewer headaches than house hacking, and you also get to reduce your monthly expenses. While skipping $5 coffees can add up over time, downsizing your housing costs can result in life-changing savings right away.

Retirees often have empty nests, and a house that felt small with children can suddenly feel too large for a retired couple. It’s especially important to downsize to a one-floor home in your 70s or 80s, when the risk of falling becomes much higher.

Some people downsize in their own neighborhoods, moving near their former homes. However, if you’re downsizing and are flexible about location, you can opt for a tax haven that has lower housing prices than your current area.

Library trips

Even if you only have $10,000 saved, it’s still important to seek out some form of entertainment when you retire, and you won’t have to spend any money if you turn to your local library. While libraries are well-known for books, they also have movies, classes, and other free resources.

You won’t have to wait for an Amazon order to arrive if you want a book or a movie. Going to the library for entertainment can also keep you away from more expensive options, such as concerts and streaming platforms.

Early restaurant visits

Dining out can get expensive, especially if it becomes your default option for eating. While you can save money by making regular grocery trips and prepping your own food, even the most disciplined retirees like to eat out once in a while. It’s a great way to get out, and you don’t have to cook.

You can save money by visiting restaurants earlier in the day. The same restaurants that are packed late in the night are often emptier in the early evening and offer early-bird specials. That’s your chance to grab great deals, especially if you dine in the middle of the week instead of on a weekend.

Getting rid of unused cars

Having two cars makes more sense when you’re raising children, but some retired couples opt to sell one of those cars after becoming empty nesters. The sale will result in some extra cash – but that’s not the only upside of getting rid of an unused vehicle. Without it, you no longer have to worry about car insurance, routine maintenance, and other costs associated with owning a car.

One car is sufficient for many couples, especially when both spouses are retired. Older people also tend to go out less, which may make an extra car less valuable.