Setting aside money in the bank or putting them in your 401(K) or IRA aren’t the only ways to secure your future. Here are some unconventional but effective ways to prepare for your retirement:
1. Buy rental properties
Real estate has always been considered as a stable investment even if it is illiquid and can’t be immediately sold. So it should come as no surprise that people invest in it to supplement their retirement income. In this case, buying rental properties can help augment one’s retirement savings despite the risks involved.
2. Rent out a portion of your home
If you don’t have the capital to buy a rental property, you can set aside a portion of your home to rent out to people. Say you have an unused basement or attic. You can fix it and rent it out for a few hundred dollars a month. Or you can register on Airbnb and rent out the room or your whole house to transients and tourists.
3. Reverse mortgage
A reverse mortgage loan is a type of loan for homeowners aged 62 years old and above. It lets the borrowers convert a part of their home equity into cash income and requires no monthly mortgage payments. Taking a reverse mortgage will help add to your retirement income. Just be sure to talk to your family about the terms, so they don’t get caught off-guard later on.
4. Make money using your home’s exterior
You can still make money out of your home even without selling it or renting it out. A lot of homes are making money by having billboards and ads placed on their exterior walls while some rent out their garages or barns as storage space. ; But make sure to check in first with your municipality and insurance company if they will allow you to do so.
When you get to the point that your home is already an empty nest, consider moving to a smaller home or a location where the cost of living is a lot less expensive. A penny saved is a penny earned and any money that does not fly out the door is already an income strategy. Moving to a smaller home will also lessen your monthly expenses on utilities, house payments, maintenance, and property taxes.
6. Sell some of your assets
More than your home, you can also make money out of your other assets. Extra vehicles, motorcycles, RVs, and other stuff you no longer need can be sold and significantly add to your income source.
7. Resell items online
Buying and selling won’t really make you rich overnight, but it helps add to your regular income. You can look for discounted goods online or in physical shops and sell them for a profit online. You can also make money selling collectibles and movies. Although it’s a niche market, there is a big enough consumer base for things like them.
8. Turn your hobbies into money-makers
Hobbies serve as stress relievers to distract us from the regular challenges we face. But it can also be a good income stream if you can monetize it.
For instance, if you’re a toy customizer, you can offer your services to toy collectors who want to have unique items in their collection. Perhaps you’re a gifted artist. You can draw or sketch pieces and sell them or take commission projects for a fee.
9. Start a new career
Starting a new career doesn’t really mean going back to work on a full-time basis. You can probably start a home-based business, like baking, and focus on making it grow. Or maybe you have the extensive industry knowledge and lots of valuable experience in your former job, you can act as a consultant to businesses in the same industry. The possibilities are there, you just need to look for the right one.
10. Take on side jobs
The side gig economy has proven to be very valuable in giving people extra avenues to earn more. It allows you to take on a job without the commitment to go full-time. It’s not like having another 9-to-5 or owning a business. All you need to do is participate by offering your services for a project.
Ensuring your financial capacity upon retirement should be one of your priorities. Thankfully, there are a lot more options today than there were years ago. While it’s easier not to prepare for retirement, it doesn’t mean that you can keep putting it off at a later time. The best time to start preparing for your retirement was yesterday. The second-best time is now.