Moving to a smaller place can also save you money on heating, cooling, and electricity costs.

Research the state’s tax codes when you look at relocating. Some states might have lower taxes or a lower cost of living.

Ensure that your new mortgage terms match the time that’s left on your current mortgage. For instance, if you’ve paid 10 years on a 30-year loan, don’t take out a new 30-year loan. Instead, fix the term at 20 years so you don’t end up paying more in interest.

For instance, instead of paying off a 30-year mortgage, modify your terms so it’s a 15-year mortgage.

Think of paying off debt as a form of investing. If you’ve paid off $1,000 that was financed at 16% interest, you’re getting a 16% return on that money.

You might negotiate a lower cable bill or drop streaming services that you no longer use, for instance.

If you want flexibility in retirement, especially to travel, renting is probably a great option. However, if it’s really important to you that you have a home to leave for your family, then it makes sense to explore options like refinancing, paying your mortgage off early, or looking for a home in a more affordable area.

Try to get a roommate that you get along with. This makes for the easiest living situation for everyone!

For example, if your rent currently costs $1,500 a month and you plan to retire in a few years when you don’t think inflation will be too high, you might calculate it at 3%. This gives you a monthly retirement rent payment of $1,700. It’s always a good idea to focus your main investments, such as Social Security, to cover rent or mortgage, leaving other investments to cover other expenses. [13] X Expert Source Brian Colvert, CFP®Certified Financial Planner Expert Interview. 27 May 2022.

Plus, you’ll have the comfort of knowing that your family is close by.

For example, you might tell yourself that you have to save $250 a month toward retirement. Treat this like any other monthly expense and try to save more if you have extra income for one month. [17] X Expert Source Dmitriy FomichenkoFinancial Planner Expert Interview. 30 June 2020.