9 Ways to Retire Early on Less Money

If you’ve been counting down the days until your retirement for years now, you may want to think about retiring early. Early retirement may sound like a luxury, but it’s easier to do than you may think. With some lifestyle changes, you can easily retire early while still saving money. These lifestyle changes may include downsizing your home, moving into an unconventional home, or simply making a few changes to the ways you spend money. Once you make these changes, you’ll be able to stop going into the office 40 hours a week, and you’ll be able to live a relaxing life doing what you love. If you’re ready to retire, these nine ideas will help you retire early on less money.

1) Move to an Affordable International Location

Many retired people consider leaving their home country and moving to an affordable and beautiful new place. You’ll find expat communities in many countries around the world. These communities often include many retirees. One popular spot with American expats is Belize. This lovely tropical country is just a short plane ride away from the United States. Plus, English is the national language here, making it easy for you to meet locals. Mexico is another popular spot for expat retirees—you can live here comfortable for less than $1,200 a month. If you’d like to give European living a try, consider moving to Spain. You’ll find apartments for rent for as little as $500 a month, and you can buy apartments for $70,000 and up. Around the world, you’ll find plenty of places where you can live in paradise for less than you’d spend in the United States.


2) Live in an RV

RV living is a popular choice for many retirees, especially those who love to travel. When you’re living in an RV, you’ll be able to cheaply travel around the country and visit tons of interesting places. Plus, there are many RV resorts that are exclusively for people 55 or older, making it easy to find communities of like-minded people. You’ll find RV resorts for seniors all around the United States, from Florida to California. Plus, if you get tired of traveling and want to stay put for a while, many RV resorts offer monthly rates. You can park your RV and have a great time enjoying all the amenities at your chosen RV resort. Then, once you’re feeling antsy, you can hit the road again. RV living is a good choice for any retiree who wants to travel without breaking their budget.


3) Live with your Kids

If you want to save a little money right after you retire, consider moving in with your kids. If your kids are okay with it, this could be a good way for both of you to save money. Plus, if you have grandchildren, you’ll get to spend lots of precious time with them. If you and your kids decide that moving in together will work you, be sure to sit down and set all your ground rules right away. If, for example, your kids don’t want you to have friends over on weeknights, it will be good to know this right away so you won’t have to worry about having a conflict later. Once you’ve figured out a system that works for everyone, you’ll be able to relax and enjoy spending valuable time with your loved ones. Plus, you may have some travel money to spend as well.


4) Move to a State with no Retirement Income Tax

If you’re open to moving anywhere after your retirement, try moving into a small house in a state with no taxes on retirement income. There are many states that offer this, including beautiful and warm southern states like Mississippi and Georgia. Plus, if you’re hoping to move to Florida, you’ll be happy to hear that the Sunshine State has no state income tax at all. Also, permanent residences to Florida are entitled to a homestead exemption of $50,000. Some seniors can also qualify for additional exemptions. Another great option for retirees is Nevada. Like Florida, this desert state has no state income tax, and retirement income is not taxed. Throughout the United States, there are many states that offer low or no taxes on retirement income, making them a good choice for retirees who are looking to save money.


5) Live on a Boat

Many people dream of packing up their house and sailing off into the sunset. You may think that living on a boat will cost you a pretty penny, but it can actually be very affordable. For example, Think Advisor interviewed a retired couple who live on a boat. They say that high-quality boats can be found for as little as $89,000, and overall, they spend $1,000 to $1,500 a month. Think Advisor says it’s possible to spend less than $18,000 a year on this luxurious lifestyle. If you like the idea of spending your retirement on a boat, be sure to take a sailing class before you head off on your voyage. These classes will cover basic safety and the skills you’ll need to maintain your boat. Living on a boat is a good option for anyone who loves the idea of spending all their time out in the water.


6) Downsize and Work Part-Time

Some people worry that they’re going to be bored when they retire. Or, they may feel like they still want to make some money, but they don’t have the energy for the 40-hour workweek anymore. If this applies to you, consider downsizing your home and working part-time. Talk to your boss or supervisor about working part-time, and see if they’d be okay with you just coming in a few times a week. Also, see if you can find a smaller house or condo to buy or rent so you’ll be able to live affordably. By doing this, you won’t have to touch your retirement savings just yet. Plus, even though you will still be going into the office, you’ll still have plenty of time to do your favorite leisure activities.


7) Use Public Transportation

If you live in an area with good public transportation, using this public transit is a good way to save money in your retirement. Many cities also offer senior discounts on public transportation, saving you even more money. Plus, if you need to go somewhere that the bus doesn’t go, you could always use ride-sharing services like Uber or Lyft. Today, there are many ways to get around without having to use a car. If you’re unsure if relying on public transit will work for you, try using it for a week and see if you like it. Then, you can decide if you’re ready to give up your car and use public transit full-time. When you’re using public transportation, you’ll save lots of money since you won’t have to worry about paying for gas, car insurance, and car maintenance.


8) Rent Instead of Buying

When you started working, one of the first things you probably did was buy a house. When you retire, it may be time to consider selling your house and renting something smaller. Renting will save you money and lower your overall expenses. Plus, you won’t have to worry about fixing things that go wrong in your house—your landlord will be responsible for that. Renting will also give you flexibility. If you decide you want to go somewhere else after a year, you can quickly pack up and move to a new location. You’ll also be able to easily follow your kids if they decide to move to a new area. For many retirees, renting is a good choice. You’ll save money, and you’ll get the flexibility to go where you’d like.


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