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5 Ways to Reorganize Your Life to Afford Retirement

a couple in their 50's on the bench-retirement planning

Do you know how much money you need to afford retirement?

Retirement can be expensive. According to financial advisers, you will need close to $1 million saved to afford a comfortable retirement.

But what if you don’t have that kind of money saved?

Don’t panic if you’re retirement savings aren’t where you thought they might be.

There are still many choices you can make to help you retire on your terms. Small cuts in retirement spending today can multiply into big amount of money you need to retire in near future.

If you’re in your 50’s or 60’s there is still time to reorganize your life, so you can afford retirement. The less you spend now, the sooner you can quit that job and start living the life of your dreams.

Here are 5 smart ways you can reorganize your life to afford retirement:

1. Downsize your home

small house in the mountains - retirement

Many of us plan on downsizing, with the hope of freeing up some extra cash for retirement.

The true cost of home ownership is high. When considering how much you can afford, you need to look beyond mortgage payments for the true cost of home ownership.

Only with time, we realize how costly it is to maintain a house. If you happen to live in one of those beautiful, big houses you know it comes with a catch – you need to pay up to keep your home in good condition. A big house will take a big chunk out of your budget.

Everyone should recognize a list of expenses as part of owning a home:

Monthly mortgage payments of principal and interest
Real estate taxes, paid annually or in installments
Homeowner’s insurance – paid monthly with your mortgage or paid annually
Utilities, including electricity, heat/gas, cable, wireless, etc.
Water and sewage, which may be billed separately or together
Trash and garbage collection
Regular ongoing maintenance, which could include cleaning your furnace, cleaning your gutters, changing filters in your air condition units, chimney sweeping, lawn and yard work, snow removal, replacing caulk in the bathrooms, changing light bulbs, and more.
Repairs and maintenance, including the interior and exterior of your home, replacing carpeting or flooring, replacing appliances and other items that break, replacing roof shingles or the entire roof as needed, repainting exterior and interior.
Renovation or home improvement projects, which could include complete re-do of the house layout or just a kitchen or bathrooms.

A lot of these details often go unnoticed for many years when people are gripped by the excitement of living in their very own home. Also, the size of your home-related expenses depends on the size of your house.

The cost of home ownership for the average American household is $13,153 annually without the cost of mortgage.

I have calculated that Roman and I spend $28,400 a year on mortgage, insurance, taxes, utilities, and maintenance. These costs take 25 percent out of our annual budget without the cost of home improvements or major repairs.

But what if you’re getting closer to retirement and have dreamed of living the life of leisure in a beach home. Could you afford that lifestyle with money you have saved for retirement?

The smart choice would be to sell your home, and move to a smaller home or condo, so you can get extra cash into your pocket today.

Consider the advantages of smaller home or condo:

A smaller mortgage
Lower property taxes
Reduced homeowner’s insurance premiums
Fewer maintenance costs
Less yard work, especially if you get a condo

What is the cost of living in your current hometown? Do you live in a high property tax state?

big city downtown with many tall buildings

You can move to a less expensive town, cut on your real estate taxes, and put more money into your retirement funds.

Roman and I want to retire in 7 years, and we talk a lot about downsizing our home. We live in a high property tax town, and the cost of living in Massachusetts is high. Our daughter moved out and we don’t need to live in town with very high taxes. We are thinking about selling our home when we retire, moving closer to her, and renting an apartment for a few years before we decide on committing to another property .

We bought our home in 2002. Over the years we did several big and small renovation projects that increased the value of our house but came with $120,000 debt in construction loans.

Right now, we are trying to stay away from any additional renovations and focus on paying off the mortgage. Our current mortgage rate is low – 3.5 percent. In 2019, our mortgage was reduced to $241,000. The goal is to reduce our mortgage to $185,000 by the time we retire.

When we sell our home, the extra cash we get from the sale, after paying off the remainder of the mortgage, real estate taxes and realtor’s fee will go to our retirement fund.

2. Reorganize your possessions

library of books-reorganize your possessions to afford retirement

We’ve all spent years collecting lots of stuff in our homes. Do we really need all of it?

Rather than continuing to accumulate more useless things, we should think about how to save money for the lifestyle we want to afford as retirees.

Between buying a new dining set or living room leather coach I would prefer to save money for a trip to Italy or a Danube river cruise. There is nothing wrong with wanting to buy new furniture. However, if you buy it, you should understand that it eats into your retirement budget.

I am sure that many of us have a hidden stash of cash in our homes. It’s all those possessions we no longer need or want. We can turn those things into cash by planning for a yard sale or selling them on eBay or Craigslist.

If you are planning to move to a smaller home or condo in the next 5 years, start with an inventory of your home’s big and small items you’d like to sell. Go through every room and make a list of things you’d like to sell, donate, return to family members, toss or recycle.

I have already started the process of reorganizing our home for future downsizing. When our daughter moved out, I sold several pieces of her bedroom furniture on Craigslist.

Every year I try to donate or toss extra stuff we keep collecting in our home. Many things we don’t really need but receive as gifts during the holiday season.

I keep in mind that one day we will move to a rental apartment or smaller condo, and I don’t want to waste money on renting a storage unit. It means that we need to bring with us only furniture and other valuable items which will fit to a smaller place. The more we sell or donate now, the less there is for us to haul to our new location.

These regular de-clutter exercises also help me realize how much we already have and think more carefully about any new purchases for our home. This means more money saved for retirement today!

3. Downsize your vehicle

old bike in the city next to bridge and box of flowers

Downsizing your transportation might be another way of finding more money in your pocket so you can afford retirement.

If a sizable chunk of your income goes into maintaining several cars or driving luxury cars, I would suggest downsizing or choosing a different car. The savings on insurance, gas, and maintenance will significantly reduce how much you need to save for retirement.

Many people choose to lease their cars because they want to have a new car every few years. Leasing works better if you are on the road for business and can deduct the lease payments.

But if you are getting closer to retirement, buying a good used car, rather than a new one for their image will help you afford retirement sooner. In the end, the cost of buying should be less expensive than leasing a car in the long run.

Another option to consider for retirement is to move close to an urban area and take advantage of public transportation. In this scenario, you might not need a car at all. When you want to go on a road trip, simply rent a car.

Most urban cities also have car sharing services that give you easy and affordable access to a car for temporary needs without the regular monthly costs associated with owning or leasing a car.

4. Move somewhere much more affordable when you retire

autumn in the mountains - afford retirement

Did you think about where do you want to live when you retire?

One of the ways to afford retirement is to relocate to a more affordable place to help stretch your retirement savings. If you own property in an expensive market, you can sell it, buy a much nicer home in cheaper area, and still have a big chunk of cash to live off.

Climate and weather might be other factors to consider when you think about reorganizing your life to afford retirement. Moving to one of the southern states will help you stay active longer than in a cold climate.

You can even downsize your clothes and sell all your boots, scarves, warm sweaters, and winter coats before moving to a warmer place. The cost of heating your home will go down, but your air conditioning bill will get higher.

You’re getting closer to retirement and dreaming about traveling. Traveling can be very expensive.

But have you ever consider buying an RV?

I have read that many retirees prefer their new adventurous life on the road. For many of them this is the perfect way to see the country and traveling where and when you please. You can say goodbye to your mortgage, property taxes, homeowner’s insurance, maintenance, yard work, and other homeowner headaches.

However, you have to consider the cost of buying RV (which could be $60,000 and higher) and the costs for gas, insurance, repairs, food and expenses of being on the road. Compare the cost to a home that could be already paid off or nearly paid off and find the financial benefit.

Have you thought about retiring abroad?

If yes, you’re not alone. Thousands of Americans are finding the home of their dreams for a fraction of the price by moving to Mexico, Costa Rica, Belize, Chile, Colombia, Dominican Republic, Ecuador, and more. There are many ex-pat communities sprung up in these countries where you can find help making a transition to your new life.

10 Best Places to Retire Abroad in 2020

5. Take care of your health

breakfast on the table-healthy retirement

Health care costs seem to go up every year. Many experts say that most retirees underestimate their future health care expenses.

Health care in retirement is not free.

Yes, Medicare provides health insurance, but it doesn’t pay for all medical costs and it doesn’t pay for long-term care at all. On average, you can expect Medicare to cover only 50 percent of your health-related expenses. A sudden medical emergency or serious illness can wipe out your retirement savings.

Think about how to reorganize your life so you can become healthier. What you eat and how often you exercise will impact who you are in 10 or 20 years.

If you are not active or eat poorly, now is the time to build new healthy habits. Walking is an easy and simple way to stay fit. You can turn it into a social activity by finding a walking buddy or join a local walking club. Mix up your routine and add a couple of days of yoga or Pilates.

Being active and eating right can add more years to your life and save money on future medical expenses.

I like to cook and prefer to shop at good grocery stores to avoid eating in restaurants or buying lunches. This way I know that we eat healthy food. Also, I review our budget every year and notice that our decision to cut on eating out saves us a lot of money.

We used to spend $100 to $150 for a nice dinner in Boston once a month. If you add buying lunches for the two of us twice a week, it will add another $40 to $60 per week. Overall, we would spend $4,680 a year on eating out.

Since we are getting closer to our retirement, we agreed on reorganizing our lifestyle and cut on the habit of dining out regularly. Instead, I buy groceries at Whole Food or Wilson Farm stores, cook homemade meals, and add extra money to our retirement savings.

Taking care of your health now is important because you can live a long, healthy and happy life in retirement.

Don’t forget to visit your doctor, get regular check-ups and screenings, so that if any problems get caught early you can do something about them.

Best Healthy Snack Ideas from Woman’s Day

Putting it all together

None of us really want to think about the idea of getting older. But it’s something we can’t escape. We spend most our adult years working, saving, investing and preparing for the golden years. Some people may want to continue their lifestyle just as it is today. But others may plan to drastically change everything and go with something new and adventurous. Or you’re somewhere in between.

Nobody wants to retire and start worrying about running out of money during your golden years. Learn how to find happiness on less, so you can start enjoying your retirement sooner rather than later. But whatever ways you decide to reorganize your life to afford retirement, make sure that it makes you happy.

Can you afford to retire and live the life of your dream? Have you thought about the ways to reorganize your life to afford retirement?

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New Year Goals & My 2019 Year in Review

by Maggie 2 Comments

A woman standing on top of rock-achieving goals

I am still surprised how fast 2019 flew by. It seems time goes by faster with each year. The great thing about the start of a new year is that one can reflect on the goals that were laid out and the goals that were actually accomplished.

Before starting this blog, I never actually took a detailed inventory of my past years and goal setting exercise for the next. This is my first time to look at those things and see what worked and didn’t work in 2019 and set up new goals for 2020.

My 2019 Year in Review

Financial review:

1. Student loan debt

We finished paying off our daughter’s student loan. She got into Suffolk University in Boston undergraduate program in 2003. We didn’t have any money saved for her college, so we accumulated around $75,000 in student loans by the end of her graduation.

Ksenia helped us to pay down the loans when she got her first job. But, three years later, she enrolled into a 2-year master’s degree program and then a 6-year PhD program. During her eight years of being a student she could not help, and it was all our responsibility.

It took us 12 years to pay off that debt, but I am very happy to say that we did our best to pay it finally in full. Last check was sent out on December 15th.

2. Credit Card debt

Unfortunately, Roman and I had some medical procedures which came with higher than expected out of pocket medical bills. Overall, we have accumulated $5,400 in medical debt for the past two years.

We decided not to pay it off with our emergency fund money, but rather spread it out between 2 credit cards with 0 percent interest on each. With this strategy, we are not going to dip into our savings, but rather slowly pay it off by the end of 2020.

3. Retirement accounts

In the beginning of 2019, I increased the contribution to my 401(k) plan up to 15 percent. My company matches 50 cents for each dollar up to 3 percent. It’s a great benefit of essentially free money going into my pocket every month.

After meeting with a financial advisor, I decided to split my retirement plan contribution 50/50 between 401(k) and Roth 401(k). I like to know that with retirement coming closer every year we take advantage of money growing in pre-tax and after-tax funds.

In April, Roman and I also added $3,500 each to our Roth IRA accounts. It’s nice to see our after-tax money growing in both accounts with additional funds. When we retire, we can take money out of the Roth IRA without worrying about being in a higher tax bracket.

4. Emergency fund

Unfortunately, our emergency fund savings dropped to $14,000 this past year. We had some unexpected expenses and had to take money out of the emergency fund. We also used some money from this fund to pay for our Caribbean vacation.

Roman set up a separate saving account for vacations, but we didn’t have enough money saved there for the planned trip and dipped into the emergency fund money. I don’t like us depleting our emergency fund for travel expenses and need to come up with new strategies for managing our money but also not saying no to travel in the future.

5. Home mortgage

We bought our home in 2002 and did several big and small renovation projects that increased the value of our house. However, we accumulated $120,000 in construction loans. I am happy to say that we finally paid off all construction loans.

Our mortgage was refinanced several times. Right now, we are trying to stay away from any additional upgrades or renovations and just focus on paying off the mortgage. In 2019, our mortgage was reduced to $241,000.

Blogging review:

woman's hand on the table writing in journal - goals

I started blogging in 2019. My first post got published on January 17th. It was a very important moment in my life. Looking back at the last 12 months, I have to admit that I struggled managing a full-time job and regular blogging.

I never realized how much work I need to put into researching, writing and editing blog posts, searching for images, writing emails, and more.

The technical part of blogging is the hardest one. I spent hours trying to set up my website, and making it work. Creating signup forms and social media accounts, dealing with plug-ins and updates from Word Press, and more. It basically takes up all my spare time and I hardly make enough content to publish it bi-weekly.

Being a non-English speaker adds to the challenge. But I am not planning to stop blogging any time soon! I try to be better with time management. It’s getting easier with a routine and having a designated time for publishing and writing posts, and posting on my Facebook, Instagram, and Pinterest accounts regularly.

Travel overview:

2019 was an exciting year in travel! In March, we traveled to the Caribbean island St. Martin for 7 days. You can read all about that trip here:

Related Post: Our Trip to St. Martin

This tropical paradise vacation cost us $5,600

In September, I had to go and see my younger sister who lives in Lithuania. I stayed with her for 3 weeks. Roman traveled with me, but first visited Belarus for 10 days and then joined me in Vilnius for the rest of a visit. We spent $4,500 on our European travels.

Overall, we stretched our finances too thin to pay for the Caribbean vacation and then travel to Europe in the same year. We paid for all our air tickets, resort and hotels far in advance, and got some price discounts. But looking at our budget, we need to do a better job saving money for our vacations.

My New Year 2020 goals:

a woman at the bottom of stairs surrounded by rocks-new year goals

Financial goals:

1. Credit Card debt

The goal is to finish paying off $5,400 of our medical debt by September 2020. I want us to be debt-free as we are getting closer to our retirement. It’s hard to predict the unknown, but I don’t want us to accumulate any additional medical debt. We need to try to budget any future medical expenses by maxing out our healthcare flexible spending account (FSA).

The FSA is a pre-tax benefit account offered by my employer each year. We use this pre-tax money to pay for our medical or dental expenses that are not covered by our health plan insurance. In 2020 I will sign up for $2,600 in my FSA.

2. Retirement accounts

The goal is to increase contributions to our 401(k) plans. I try to bump it up at least by 1 percent every year. When I get a bonus or salary raise it goes straight to my 401(k) plan. That way you don’t notice the change with your take-home paycheck. I wish we could max-out our yearly contributions to $24,000 each. Unfortunately, I don’t see it happening next year.

Another goal is to put an additional $3,500 each to our Roth IRA accounts in April.

3. Emergency fund and savings

Our emergency fund savings need to be increased. The goal is to have minimum of $30,000 saved in that fund for emergencies.

We opened a separate savings account and called it “travel”. But so far, we have only managed to save $100 per month, which is not enough for our travel expenses. If we want to continue our travels and don’t pay for them out of emergency fund, we need to make some adjustment to our budget. The goal is to find ways to save more money in our “travel” fund.

4. Home mortgage and other bills

The 2020 goal is to continue paying off our mortgage and bring the balance down to under $230,000.

Every year we try to spend less on our groceries, transportation and other bills. Recently Roman and I started carpooling. Using only one car significantly reduced our transportation expenses including gas bill. I want us to keep doing it. It saves us a lot of money.

The same applies to our groceries. We have tendency to shop at local Wilson Farm and Whole Food supermarket. The cost of shopping there is high. But I like to buy fresh and good quality ingredients, so I can cook home-made meals all the time. We save a lot of money on eating-in and not buying our lunches.

Two ways to reduce our grocery bill even further, without sacrificing quality, would be to buy less meat or expensive fish and buy more seasonal.

Blogging goals:

When I launched the Save, Invest & Retire Blog in 2019, I didn’t realize that the blogosphere changed so dramatically over the years. According to the stats there are 500 million blogs in the world today. That’s a lot of competition to deal with for a new blogger.

But 2020 is going to be a year where I challenge myself and push myself harder to improve my blogging skills.

Blog content goals

Longer blog posts take more time to create, but they produce more results and favored by Google. I want to commit to creating posts with longer content up to 2000 words.
Keep creating and publishing new posts every 2 weeks. I need to get at least 3 new posts ahead on Save, Invest & Retire, so I will have enough time to edit and add graphic before publishing them.
Make more research on popular topics using SEO keywords.

Goals for list building

Start working on e-mail list
Learn more about e-mail marketing and come up with my own strategy

Goals for traffic building

Focus on growing Save, Invest & Retire blog traffic. By the end of 2020 I want to have 50,000 pageviews.
Stay active on social media. Come up with a detailed strategy how to grow blog traffic using Pinterest and Facebook accounts.

Since I started the blog, I have learned so much on all fronts and need to keep doing it.

Travel goals:

image of Santorini island with houses on slope of mountain

Roman and I talk a lot about traveling. We like to travel and dream about being full-time travelers. So far, we don’t have enough money to fulfill our dream.

In 2020 we are planning to go to Greece. We have already booked a 7-day cruise around the Greek islands in May. Celestyal Cruises is a small cruise ship line, so the price is relatively cheap to compare with mega cruise ships.

Our plan is to fly to Athens, stay there for a few days at a hotel, then hope on the cruise. The cruise is all-inclusive, which means we don’t need to buy an alcohol package or spend extra money on excursions.

I always wanted to go to Greece. I hope it will be an interesting voyage with the different atmosphere of a smaller ship. We already pre-paid for the cruise, booked a hotel in Athens, and bought air tickets. We budgeted $7,500 for everything.

What are your life, work, and travel plans for 2020?

Baby Boomers: How to Prepare for Retirement?

by Maggie 2 Comments

boomer woman laying on top of the car surrounded by palm trees

If you are a baby boomer, your retirement planning shouldn’t be complicated. You don’t need to have a degree in finance. There are a few simple steps needs to be done in your early working years and the rest you can figure out in the years before retirement.

When you are in your 20’s, finally out of school and start making money, your first financial goal is to save money. At that age, your priorities don’t include reading books about retirement planning. But we all know that if you don’t start on that road early it will get harder with each passing year.

Retirement looks like a distant future even in our 40’s. For many years my retirement goals were mostly vague because there were so many years ahead of my life.

But after I turned 50, everything has changed. I started to feel that the distant future begins itching much closer with every day. I know that many people get serious about planning for their retirement when they reach their 50’s. At this point in your life, you started to understand that you need to be more realistic about what lies ahead of you.

As baby boomers, we need to start preparing ourselves and our finances for the transitioning from the “far away retirement’ to the ‘around the corner”.

If you are a baby boomer, I want to share several steps you need to take to help you prepare for retirement:

Step 1. Start with your dreams

boomer woman hiking with camera among tall grass

When you are in 5 to 10 years before retirement it’s crucial to decide what exactly you want to do in retirement. Your retirement is not far away anymore, it’s rather very close. The more details you can put into imagining the days of your retirement, the better job you will do preparing for that life. It’s important to decide first what your retirement dreams are, then you can move on making it happen.

Some people dreaming about traveling the world or buying a boat. Others are all about living close to the family, gardening, and volunteering. It’s important to remember that you can’t plan retirement without knowing what you want to do in it. I think it’s time to discover your passion. You’ll need to dig deep inside yourself to determine what excites you. You’ll have to have a reason to get out of bed every day.

Imagine in detail how would you spend your days when you stop working:

What would be your daily routine?
Are you planning to keep working part-time?
Do you have any hobbies?

Did you think about where would you live? Are you planning to relocate to a different city or state? Do you want to live closer to your family or your friends?

How active are you? Are you healthy? What are you doing to stay healthy?

Answering these questions is important because it will help you to figure out how much your retirement will cost.

Step 2. Move from your dreams to your goals

The next step is to figure out what do you need to do to make your dreams come true.

Once you wrote down the list of your dreams, you can start working on your goals. Dreaming about retirement is not enough, you need to know if you have enough cash to support your lifestyle without regular employer paycheck.

Start by estimating how much money do you need to support the lifestyle of your dreams. Where you live and what you prefer to do will determine the cost of retirement.

Have you saved enough for retirement?
How many years you have to have to achieve these goals?

If you haven’t done any retirement estimates yet, I would recommend start playing with online retirement calculators. The online calculators will help you to see how much income you will have in retirement based on your current savings and investments. You can play around with decisions like your retirement date, the rate of return on your investments, rate of inflation and see how these things will affect your future income.

However, most online retirement calculators will give you only a broad overview of your retirement plan, because they are based on future expectations.

MaxiFi Basic Retirement Calculator

AARP Retirement Planning Calculator

Don’t forget to include your Social Security benefits into retirement income calculations. It’s true that for most of the baby boomers the best strategy for maximizing our Social Security benefits is to wait until age 70. This usually results in tens of thousands more in lifetime income than retire at age 62.

Unfortunately, to follow this rule is not always happen in real life. Everyone has their own set of circumstances. But I would recommend looking at your Social Security benefits and see how the retirement age will affect your future income.

Step 3. Create action steps to make your goals happen

a hand holding a magnifying lens - retirement plans

Be clear on your goals.

My goal is to retire at 67 and be able to spend $50,000 per year during retirement. Roman and I like to travel, and we want to spend our time traveling to the places we have on our retirement bucket list. Spending $50,000 while traveling the world might not be a realistic goal because we still need to pay our bills. But I like to dream a little. We can always change things later and modify our plan based on our retirement income.

If you are in the process of creating your detailed retirement plan, first you need to know how much it will cost you to live once you retire.

There are several options to calculate that number:

The most popular rule of thumb is to calculate a ballpark number. The estimate is often called “multiply by 25 rule”. This rule works as a guide to how much you should save before you retire. So, to determine how much money you’ll need in retirement, multiply your desired annual income by 25.

For example, you plan on withdrawing $30,000 from your retirement savings each year.

$30,000 x 25 = $750,000 – you need to have in your retirement savings

If you plan on withdrawing $50,000 from your retirement savings each year you will need to save:

$50,000 x 25 = 1.25 million

But keep in mind that this rule doesn’t’ factor in other sources of your retirement income like Social Security, pension or rental income.

The cost of living number: use your cost of living now (your current spending) and calculate 70% as for your future spending. So, if you are earning $100,000 a year, you should plan on living on roughly $70,000 a year to keep the same lifestyle. Statistics show that we will spend less money when we retire.

Once you go through all these calculations you may discover that you don’t have enough money saved to achieve your goals.

What to do?

The first step will be to increase your savings. How much do you save in your retirement accounts? Saving 10% might not be enough if you are 5 to 10 years away from retirement. You need to increase your savings by at least 20%.

If saving more money is not an option, the next step will be to start looking at your spending and see if you can spend less. Most people believe that saving and investing are the most important steps while preparing for retirement. However, your spending plan will determine if you are going to have a happy retirement. Think about it. You can make $75,000 a year in retirement, but if you spend $150,000, you are not going to stay retired too long.

Step 4. Look for downsizing opportunities

small town houses covered with snow - downsizing in retirement

Downsizing can be a very scary word. Many people think that having fewer things means letting the world know that you can’t afford the “big life”. Home-ownership is special. We are emotionally connected to our home. However, our homes come with huge financial responsibilities. You have to pay for your mortgage and home insurance. You have to heat it in winter and cool it in summer. Home repairs, renovations, and yard work require money.

Is it time to downsize your home? If your kids off to college or grown and out of the house maybe you have more space than you need. Downsizing could be a positive thing if you move to a smaller home with less of a financial burden.

If you paid off your mortgage and own your home, you might consider renting it and moving to a condo or a smaller home in another part of the city or town. Being a landlord is not an easy task, but you can use rent as an additional source of income in retirement.

When you are moving to a smaller space, it’s always best to sell what you can’t take with you than to rent storage space. I have heard about many people who still pay for their storage units but haven’t open them for years. Don’t waste your hard-earned money on stuff you don’t need anymore.

Downsizing your transportation might be another way of finding more money in your pocket. If a sizeable chunk of your income goes into maintaining several cars or driving a luxury car, I would suggest downsizing or choose a different car so that you can save and invest more.

Many people choose to lease their cars because they want a new car every few years. Buying a good used car, rather than a new one for their image is always a good option. When you think about, the cost of buying would be less expensive than leasing it for the long run. Also, a car is considered as a depreciating asset and loses its value faster than you imagine.

Roman and I have discussed our downsizing opportunities and planning to sell our house and move to a smaller one, preferably condo. We also want to downsize from two cars to one. All these actions will save us a lot of money and eventually will allow us to spend more in retirement on our dream lifestyle.

Step 5. Take care of your health & review your healthcare options

different kind of fruits-healthy retirement

Think about how big and small choices related to your health now will determine options for your future. What you eat, how you exercise or exercise at all, and other healthy choices will impact who you are in 10 or 20 years.

I have read many articles showing that baby boomers are in serious denial when it comes to their medical and long-term care costs. Yes, Medicare provides health insurance, but it doesn’t pay for all medical costs and it doesn’t’ pay for long-term supports and services at all. Many believe that they will only need about $50,000 to pay for their health care in retirement. Sadly, they are wrong.

We all know that medical insurance is essential even it can be expensive. A sudden medical emergency or serious illness can wipe out your savings. According to Fidelity’s new studies a 65-year old couple retiring in 2019 can expect to spend $285,000 in health care and medical expenses throughout retirement.

If you are not active or eat poorly, now is the time to build healthy habits. Being active, exercising and eating right can add more years to your life. Visit your doctor, get regular checkups and screenings so that if any problems get caught early you can do something about them. Taking care of your health now is important so you can live a long, healthy and happy life in retirement.

Putting it all together

There are many things to consider when you start working on your personal retirement plan. I read all the time about financial surveys indicating that many baby boomers are short on their retirement savings or lack any kind of planning for retirement.

Don’t be that person. Take the time for these 5 steps so you’ll be on your way to generating a solid retirement plan and feel ready for the retirement of your dreams.

Do you have a list of your retirement goals? Did you work on your retirement plan? Do you feel ready for retirement?

Discover 7 Best Things to Do in Montreal

by Maggie 2 Comments

city view of Montreal from top of MontRoyal — City skyline view from the top of Mont-Royal

Montreal is one of my favorite cities in North America. We lived there for two short years but it always has a special place in my heart. It is unique, it is special, it is charming and it’s a heaven for foodies.

The city has a very European feel and called “Paris of Canada” for its love for festivals, street art, good food, and enjoying life to the hilt.

Even Montreal is a big and cosmopolitan city and yet it is made for people. In summer there are lots of green areas and small parks where residents can relax, walk around, ride a bike, or make a picnic.

People of Montreal definitely know how to have a good time. The streets are alive and buzzing with French and English conversations. It’s safe and you can walk around even late at night. People enjoy staying late dining out, partying or just simply cycling with the family through the streets.

There are several universities in Montreal with students from Canada, the United States, and Europe. All that just adds to the city’s vibe and its multicultural atmosphere.

In this post I want to share my experience of how to discover Montreal and 7 best things to do in this city:

1. Wander around Old Montreal & Old Port

St. Paul Street in Old Montreal, Canada — St. Paul Street – Old Montreal

Start your visit by exploring the oldest part of Montreal – Old Montreal (Vieux-Montreal).

Walk along St. Paul Street for that old European charm. It’s a pure pleasure to walk the cobblestone streets dated back to the 17th century. The old limestone buildings bring a lot of flavor to this area. Don’t miss to stop at the unique place called Bonsecours Market or Marche Bonsecours for locals. If you go inside, you’ll find it an ideal place for shopping for gifts and souvenirs.

St. Paul Street & Bonsecours Market in Old Montreal — Bonsecours Market in Old Montreal

The most popular part of Old Montreal is the area called Old Port (Vieux-Port de Montreal). It was established around 1611 as a trading post among French fur traders who ventured into the wilderness of the region.

Today, the Old Port stretches 2 km along the shores of the St. Lawrence River and one of the most popular places with tourists and locals. The pedestrian street Place Jacques-Cartier comes to life especially during the summer months, when restaurant’s terraces stay open until very late, and when many street performers keep visitors entertained.

Place Jacques-Cartier is part of Old Montreal — Place Jacques-Cartier and City Hall of Montreal is part of Old Montreal

The Old Port was re-developed in the 1990s to make it more attractive to tourists and locals. According to the statistics, the impressive six million tourists visit this area each year. One of the best things you can do is to stroll along the riverfront on foot or cycling on the bike with Segway rentals available everywhere. Also, there is a giant IMAX theater and the Montreal Science Center.

Place Jackes-Cartier in Montreal in summer — We enjoyed visiting Place Jacques-Cartier during the summer months

There are so many events, festivals and shows happen in the Old Port. Each season brings something new and different to the calendar. But I want to mention the most popular events: the annual outdoor music festival, the famous Montreal’s Festival of Lights, the Matsuri Japan festival and in the winter Igloo fest which draws tens of thousands.

Old Port of Montreal is part of Boat tours on the St-Lawrence river

Montreal: Private Walking Tour with a Local

2. Notre-Dame Basilica

Notre-Dame Basilica in Montreal — Notre-Dame Basilica – Old Montreal

Notre-Dame Basilica is one of Montreal’s oldest buildings and it’s a short walk from picturesque St. Paul Street. The Basilica was built in an impressive Gothic Revival style, standing 200 feet high.

This beautiful building is one of my favorites. I always feel overwhelmed by its architectural beauty and grand, colorful interiors. The deep blue ceiling is dotted with golden stars. The stained glass windows show scenes from the city’s religious history. Hundreds of rare wood carvings grace the interior. The whole interior is a blast of colors in blues, reds, silver, and azure.

If you want to get inside you have to pay an admission fee around $6.00, unless you want to attend a Catholic mass. Even Notre-Dame is a religious place, it has an active calendar for cultural events, with regular concerts and light shows being held throughout the year. It was also the setting of Celine Dion’s wedding to Rene Angelil.

3. Mary Queen of the World Cathedral

interior of Mary Queen Cathedral in Montreal — Beautifully ornate interiors of Mary Queen Cathedral

If you are like me and fascinated by the architecture, you should visit the magnificent Mary Queen of the World Cathedral. You can find this beautifully ornate church right in downtown Montreal.

The story behind its facade that the original building of Saint-Jacques Cathedral was burned to the ground in 1862. The new church was built in the same place and it was modeled after St Peter’s Basilica in Rome. Mary Queen Cathedral is the third largest cathedral in Quebec.

Go inside and you will be fascinated with the paintings depicting early Montreal history. Don’t forget to stop and enjoy a few minutes of looking at the church baldachin covering the altar and the bishop’s mortuary chapel. Also, take note of the texts written in golden letters that decorate the inside of the cathedral.

**4. Mount Royal Park (Parc du Mont-Royal)**

People walking up the street in Montreal to get to Mont Royal — You can walk along the street to get to Mount Royal Park. It’s right in the heart of downtown Montreal. You cannot miss it.

I’m always a huge fan of looking at the city from above and Montreal has some great points to admire its beauty. One of the Mount Royal (Mont-Royal) is a small mountain in the middle of the city. Montreal’s spectacular Mount Royal Park offers one of the best views of the city below.

The park was designed by Frederick Law Olmsted – an architect of New York’s Central Park and offers acres of green space and different outdoor activities in the middle of the bustling city. It’s one of the best getaways from the hustle and bustle of the big city.

I would recommend driving to the top of the mountain to see the entire city stretched out below or you may walk to the top through one of the many trails. However, you can climb on top of Mount Royal by using steep wooden stairs that start at the base of the park.

When you reach the top, you will find the beautiful observation place with a historical Smith House on the background. It was built in 1858 and considered the last standing example of rural architecture of that period.

**5. St. Joseph’s Oratory of Mount Royal (Oratoire Saint-Joseph du Montreal)**

St. Joseph Oratory wall murals — A mural of all nations is by the escalator that takes us to the main sanctuary of the Oratory

While in Montreal you might notice a big, green, round roof of the building standing tall in the city skyline. It belongs to St. Joseph’s Oratory of Mount Royal and the largest church in Canada.

The green dome of the Oratory was modeled after St. Peter’s Basilica in Rome and is the second highest in the world. The Basilica was built on the top of the hill with long rows of steps and amazing views of the city. The whole complex of landscape and architecture reminds me of the famous Sacre-Coeur Basilica in Paris.

There are a few interesting facts behind St. Joseph’s Oratory Basilica. According to the legend, “Brother Andre” was known to perform miraculous healing on the sick and injured. He built a small chapel on the slopes of Mont-Royal and dedicated it to Saint Joseph.

But with time it became very crowded and the demand for prayer space had grown. So, a larger church was built in 1917, and then expanded and completed in 1967. It hosts over 2 million visitors each year, many of whom come looking for healing.

If you want to explore the Basilica, visit a small original chapel, the gardens, the museum with religious and artistic exhibits. In summer I like to take a stroll through the basilica’s gardens. It showcases wide lawns and colorful flower beds.

**6. Jean-Talon Market (Marche Jean-Talon)**

Jean Talon market in Montreal — Jean-Talon Market has many stalls with fresh fruits and vegetables from local farms

One of the oldest public markets in Montreal is the Jean-Talon Market. It’s a heaven for foodies and one of my favorite places to visit on Sunday morning. The market is open throughout the year. Its busiest time in the summer and fall where up to 300 vendors from the city countryside come to display their fresh produce. No cars are allowed in the market streets over summer weekends. So, it will be easier to use public transportation, Uber or taxicab.

The market reminds me of a little village. Some merchants continue generations of market sellers. It’s very popular among locals and tourists. You can find all kinds of local fruits and vegetables, spices, oils, cheese, meat, fish and baked goods.

If you are at Jean-Talon Market don’t forget to visit the Premiere Moisson shop. Everyone loves it. It’s a bakery that makes bread, desserts, and sandwiches. It’s not a restaurant, but if you want to stop for a sandwich, dessert and coffee there is no better place. A very “French” experience. We love it. You can buy an amazing variety of pates, terrines and artisan bread.

Premiere Moisson Bakery display of tarts and cakes — My favorite part of Premiere Moisson bakery – all kinds of tarts and cakes

If you are looking to appreciate the flavors of Jean-Talon Market, you should consider the Food Tour Of Montreal’s Little Italy including the Jean-Talon Market:

A Foodie’s Tour of Little Italy

7. Shopping on St. Catherine Street

You cannot leave Montreal without visiting its main shopping hub – St. Catherine Street. This street is long and crosses the Montreal’s downtown from east to west. You can walk it for hours and find the local boutiques, high-end designers, chain department stores and small souvenir shops. There are plenty of restaurants, cafes, and bars along the street. In summer you can enjoy the drinks and meals outdoors while the street breaks into small and big patios on every corner.

People are walking along St Catherine in Montreal — St. Catherine Street is long and you can walk it for hours.

Keep walking towards St Catherine West until you find Place-des-Arts. Recently renovated and expanded this place is a major cultural venue of the city. The city hosts numerous festivals each year and the most famous one is Jazz Festival. The admission to many attractions is free, so more people can enjoy the festivities.

Food

brunch plate with omelette, potatoes, fruits — Montreal is big on brunches. We had brunch at one of the popular places where people wait in line to get seated

Montreal is famous for its excellent restaurants that serve national and ethnic food. If you are a tourist, it’s easy to find a decent place to eat within a walking distance. The city is full of French bistros, patisseries, pubs, hipster bars, and fancy restaurants. On a sunny afternoon, terraced cafes and outdoor restaurants are filled with locals and tourists lounging in groups.

I would recommend to take one of Montreal popular food tours if you want to taste the delicious diversity of this city:

Local Food Tours Montreal

Weather

I would recommend visiting Montreal between mid-June and mid-October while the weather is decent for traveling and enjoying the outdoor activities. Montreal has 4 seasons with the height of summer being warm, sunny and hot. Winter months are cold and long here with several large snowstorms with a foot or more of snow on the ground.

If you are trying to escape a cold day outside, you would be happy to learn that Montreal is home to the largest “underground city” in the world. It sounds scary, but the underground city is one of Canada’s busiest shopping areas. You can access the network of underground paths and tunnels from the street, subway stations, and even major hotels. It will directly connect you to shopping centers, office and public buildings, night clubs, a movie theater, and many cafes and restaurants.

Other places to visit:

**Museum of Fine Arts (Musee Des Beaux-Arts)**

Museum of Fine Arts in Montreal — Museum of Fine Arts in downtown Montreal. It’s too bad that the front facade was under renovation.

Montreal Museum of Fine Arts is one of the prominent in the world and welcomes over 1 million visitors every year. It was founded in 1860 and made of three pavilions featuring the art from around the world.

**Botanical Gardens (Jardin Botanique de Montreal)**

Montreal Botanical Gardens is considered one of the most important botanical gardens in the world. It dates to 1931 and has a 200-acre collection of gardens and greenhouses. Each garden has a theme and there are flowers and plants from all around the globe.

**Montreal Olympic Park (Parc Olympique)**

Parc Olympique was built for the 1976 Olympic Games. It cost over $1.4 billion to build but was not completed until the 1980s. It was the subject of much frustration for many Montreal residents. However, it is a popular tourist attraction and offers visitors to view exhibitions and participate in many types of activities.

Have fun visiting and discovering Montreal!

Have you been to Montreal? If yes, did you enjoy it? If not, would you like to visit it?

6 Smart Ways to Make a Holiday Budget & Stick to It

by Maggie 4 Comments

a child in red dress decorates Christmas tree - holiday budget

The holiday season already started with Halloween festivities and shopping for home decorations, costume parties and bags of candies. But the big money spending holidays like Thanksgiving and Christmas are coming close.

If we don’t want to accumulate new debt during the holidays, we need to allocate some money for decorations, gifts, parties, and maybe travels. The best way to do that is to make a holiday budget and then stick to it.

In this post I want to share the smart ways to create a holiday budget, save money on holiday shopping and avoid getting into debt:

1. Set a holiday budget and know your limits

If you don’t want to accumulate new debt during the holidays, you need to make a holiday budget. Before you decide what you should spend money on, you need to figure out how much money you can spend. The smart way to prepare for holiday spending is to look at your basic budget spreadsheet.

First, look at your monthly take-home pay and then subtract your monthly expenses, and calculate what is left. The number on your spreadsheet or calculator is how much you can afford to spend for the holiday season without getting into new debt.

Now you know how much you can comfortably spend on things like clothes, gifts, parties or travels. Don’t forget to add all your other holiday expenses like:

Decorations
Food
Postage and shipping
Charitable donations
End of year tipping

2. Make a list of people

table decorated for Christmas dinner -holiday shopping

After setting up a budget for your holiday spending, the next step is to make a list of your friends, family members, co-workers, neighbors and assign a gift budget to each name. In addition to that, you can put on your list a few gift ideas for each person within your budget. Keep the assigned dollar amount within your budget. But leave a little extra wiggle room if numbers are not working.

You can use an Excel spreadsheet or a small notebook for a detailed list of your holiday spending, including names, gift ideas, the amount of money you can spend and even the ideas where to find the gift. Once you have these estimates and brainstormed the gift ideas it will be easier to see your limits and not deplete your wallet during the holiday season.

3. Do your research and find the best deals

One of the keys to smart holiday shopping is research. Doing research on the best deals is important. We are bombarded with sales promotions, special purchases, buy-one-get-one-free deals and more. You want to know when and where the best deals will be offered.

During the holiday season, retail stores are offering great deals. Before making any purchases, check prices at multiple stores. To save money, search and compare prices online before setting foot in a store. When you come shopping in a retail store, use your research information and take advantage of the deal if you see one.

Many people prefer to shop online these days and that number grows with every year. So, if you want to skip the store and shop online check out a few deal-oriented websites:

Retail Me Not

Deal Hunting

Hot Lowest Price Deals w/ Free Shipping

The benefits of shopping online are not limited to saving on gas and parking fees. Let’s face it: very few of us enjoy holiday shopping. Sometimes it’s very hard to find pleasure in heading out to find gifts for our loved ones and dealing with crowded malls, long lines, and pushy shoppers. I found it easier to shop online in the comfort of my home day or night. And don’t forget to look for free shipping offers, if you plan to order online.

If you travel, many online websites offer great gift selection, and your items can be sent to your travel destination. That means you won’t have to worry about traveling with bulky presents.

4. Start shopping

table with women hands working on computer w/ holiday decorations - holiday budget

You set up a holiday budget, you made a list and have done your research. Now it’s time to start shopping with your list in hand. It’s a good idea to start shopping early so you can get the best prices. If you do last- minute holiday shopping, very often you will risk paying much higher prices.

Make sure that you keep a track of your spending and stay within your budget. Use the same excel spreadsheet or a notebook with names, gifts and price ideas for tracking.

I would recommend adding a column to your spreadsheet and name it “planned spending” and “actual spending.” Total up “planned spending” to see how much you can afford to spend over the holidays. Then keep adding the cost of gifts to your “actual spending” column. This way you will keep track of your spending. You should cut back or limit gift items when you see spending more and getting out of your budget limit.

Another smart way to save money during the holiday season is to search your home for the ribbons, wrapping paper, holiday cards, decorations or even gifts you bought on sale last year.

You may even find the gifts if you bought them after the holidays, stashed away and forgot to retrieve. It happened to me several years ago, when I found a few gifts and left it forgotten in a storage closet. After that, I have bought a big plastic bin where I keep all holiday decorations and last year’s gifts and created a designated space for holiday items, so I don’t lose track of them again.

5. Cash or credit cards

Recently I have read that “cash makes it easier to stick to your budget”. The idea behind that statement was to label envelopes with the name of the gift recipients and other spending categories. Then put the cash in each envelope, matching the amount with your planned budget.

This method sounds like an old fashioned to me, but it will be practical for anyone with careless shopping habits. With only limited cash available and no credit card to use, you cannot get out of hand with your spending. It’s easier to stick to your budget by paying cash.

So, pay cash if you want to avoid overspending. But I must admit that I never shop with cash and prefer to use credit cards. However, Roman and I are responsible credit card users. We always pay off our balance in full to avoid getting charged high interest. Besides, most of our credit cards offer cash-back rewards, so I feel that I still make money while shopping.

If you are planning to use credit cards, it’s recommended to shop with no more than 2 credit cards. You will be better off with low-interest credit cards, not the expensive department store cards. The more cards you use, the harder it is to keep a track of your spending.

6. Alternative gifts

table with eggs, baking dough and cookies - holiday budget

The winter holidays are the most expensive time of the year for many people. On average the shoppers will spend around 730 billion of hard-earned money between November and December.

What to do if you want to enjoy your holiday season without overspending or getting into new credit card debt?

What other options if you don’t have enough savings or extra cash available to cover your holiday expenses?

There some ideas of alternative gifts that will come handy. Instead of buying individual gifts, set up a Yankee Gift Swap or Secret Santa. Gift swaps and exchanges at holiday parties help to trim down the cost of holiday spending for every guest.

Other ideas – potluck dinner with friends and handmade gifts. Homemade or handmade gifts are great for any occasion. I have a friend who gives us beautifully decorated glass jars with homemade cookies for Christmas and New Year. She has a big box of saved holiday decorations and likes to make and decorate her gifts for each occasion.

Or you can give actions instead of physical gifts by babysitting for a stressed mom, cooking dinner with a friend, baking fresh out of the oven cookies with your kids or grandkids or simply buying and decorating a Christmas tree together with your family.

After all most of us cannot remember the gifts we received last year or year before. But we all have sweet memories of family’s favorite holiday traditions.

100 Free Gift Ideas Your Friends Will Actually Want to Receive by Nicole Dieker

Final Thoughts

The holiday season is here. It feels that holiday shopping starts earlier every year. Retail stores have barely put away their Halloween decorations before they fill the shelves with Christmas gifts. Festive holiday ads on TV, brightly decorated streets and shops would make you believe that this season is the best time for shopping. It’s easy to get overboard on holiday spending unless you know your limits.

Now is the best time to put your holiday budget together, make a list of gifts, check the prices and start shopping.

Have you planned out your holiday budget? Share in comments your ways to save money on holiday shopping.