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Downsize housing and transportation

If you’re a homeowner, one way to slash housing costs across the board while pocketing extra cash is by downsizing your living situation.

Moving into a smaller house or a condo could be a tidy way to cut down on the cost of utilities, home insurance and property taxes, while the profit can be used as an additional safety net or for investment purposes.

In addition, if you own multiple vehicles, you could cut down to just one to save on care and auto insurance costs, or if you have a high-priced vehicle, such as a sports car, you could possibly also save by downsizing your vehicle. If you’re able and want to go the extra mile, consider public transportation or simply walking as your primary means of transportation.

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Move to a cheaper state

Many older adults move to new states for the sun and the fun, but older Americans may want to relocate to save money.

Mississippi, Oklahoma and Alabama all require annual incomes under $47,000 to live comfortably as a single, according to a recent GOBankingRates study. So, if your Social Security benefits or pension don’t quite rack up to $112,000 a year — the amount needed to live in Hawaii — consider moving to one of those cheaper states.

If you’re also worried about things like access to health care and public safety, Bankrate also recently released a study of the best states for retirees based on different categories.

Take a cue from ‘The Golden Girls’

If you don’t want to move, but struggle to afford staying where you are, you still can make life a little less expensive. All it takes is a little help from some friends.

Take a cue from “The Golden Girls” and move in with a friend or three. This can effectively cut down on housing costs between each person and possibly other costs as well.

Living with roommates has become more common among Americans aged 65 and up. Around 913,000 of them live only with roommates who aren’t relatives – nearly double the amount since 2006, according to the JCHS report.

So why not rent with friends? It’s an opportunity to split both household and health-care costs, depending on the arrangement you have with your roommates.

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About the Author

Sabina Wex

Sabina Wex

Reporter

Sabina Wex is a writer and podcast producer in Toronto. Her work has appeared in Business Insider, Fast Company, CBC and more.

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The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.