Maybe, for whatever reason, you have decided you don’t want a reverse mortgage and are looking to become more financially stable in another way. Perhaps you just want to do research beforehand to ensure that a reverse mortgage is the correct path for you to follow. Regardless, it is paramount that you know all of the options available to you if you are looking for financial independence later in life.
Many people, whether on the verge of bankruptcy or simply uncomfortable with their financial situation, feel backed into a hole. There are many things you can do before resorting to the last-ditch efforts such as declaring bankruptcy. For the sake of clarity, we will divide financial options into two categories: keeping your current living situation and changing your current living situation.
Keeping Your Living Situation
Let’s say you feel that your house has too much sentimental value or that you would be too uncomfortable in a different house or with a different living situation. This is perfectly understandable in many situations; however, something needs to change if you want your financial situation to improve.
One of the most pertinent options you have is to refinance. Maybe the rates of today will allow you to have a lower monthly payment than your original rate. Upon doing a little research and getting some quotes, you can easily declare this as a possibility or rule it out altogether. Either way, it doesn’t hurt to look.
Another important thing to do is comb through your assets and expenses and find places where you are holding an asset or paying an expense without a valid reason. Common instances include a life insurance policy that you are paying into that has substantial value or stocks and real estate that can be sold.
Changing Your Living Situation
Oftentimes it just isn’t an option to sustain your current lifestyle. Don’t worry—there are a substantial number of options to get you feeling good about your money again.
Many seniors find themselves in the same house that they raised a family in. This often leads to a much bigger living arrangement than necessary once everyone moves out. Downsizing by moving into a smaller home is frequently considered by those looking for a quieter—and less expensive—lifestyle.
If you like the size of your house already, then perhaps it would be in your best interest to move to a place with a lower cost of living. Be it lower land value or cheaper utilities, a surprising amount of money can be saved by moving to a less expensive part of town.
Sharing a home is often overlooked as a legitimate option, and an invasion of privacy is the most commonly cited counterargument. This living arrangement does not have to be intrusive, though. There are many setups where you can easily share the cost of paying for a place of residence without sacrificing privacy.
The bottom line is as follows: you need to weigh the upsides and downsides of each option and do research to find specific numbers before deciding on how to improve your finances.