Downsizing your lifestyle

Many companies due to the financial crisis, started to downsize everything. Be it their business or number of employees, it is always the employees who suffer most. They are the first to take the pay cut, the first to work less hours and the first to lose their jobs. And when the economy recovers, they are not the ones who can easily get another job. With mouths to feed and loans to pay, life is not easy for them. Like it or not, we too have to downsize in our own ways. The same goes to those who are about to retire, since the monthly income will be reduced to half [for those civil servant] or nothing except some EPF money [for those in private sectors].



It is easier for the civil servants since they more or less get their pension every month without fail. For those who depends on the EPF will have to make their money work for them and it is not an easy thing to do.With the poor interest rates offered by the banks and the long life span after retirement age, these retirees have nothing to shout about.



I can only think some of the ways to make retirement easier for the retirees. DOWNSIZE. Downsize your house, your car and expenses. If you stay in a big house, sell it. Buy a small one. after all, there's only the two of you {in most cases}. With the extra money left after selling and buying, it can make life a bit easier. Sell your big car, buy a smaller one... after all your children wouldn't tag along , now that they are bigger. You will be paying a smaller loan installment for a smaller car. You save money again. Take care of your health, exercise more and pray that you will not get serious illness. That will save money.


If you are used to travelling first class, now it is the time to switch to economy class. And when your previous travelling involved the economy class, you should be thinking of travelling with AirAsia or RyanAir. Downsize you hotel room from 5 star to 3 or 4 stars. I know it is easier said than done. Especially when we got caught up with status and egos. But think of your survival for the next 20 to 30 years, then you'll think twice about spending your money freely. Do not care what others will say, it's your life. Nobody know better than you whether you can afford your lifestyle. I for one will be trading my bigger car for a smaller one next month. Happy downsizing.