Getting Out of Debt When Your Retired

I think the hardest thing to do when your retried is paying off debt that has accumulated over a long number of years. For me, it is trying to do things that are free. Right now I had a croissant and a coffee just to get out of the apartment. Well, there renovating in the next door apartment and the banging and thumping was something else. So, I decided to treat myself.

Again, if your a social butterfly like me you are going out constantly with friends and that can add up. I usually always make my breakfast and supper. Lunches out are my demon. But, because I recognize that this is hurting me - I am more conscious about it and sometimes I refuse to buy my lunch. Go to a cheaper restaurant - that - will help a lot. Cook a lot- that will save you even more money.

Exercise is free. This helps me to keep healthy and doing something that does not cost me any money. Yes, a lot of walking.

I keep business cards in my pocket at all times so that if the opportunity happens to present itself to talk to neighbours and drum up some business for my little self-employed company - I am all over that one. Also, I can write off things off as business expenses.

I am also a Coupon Queen but the problem is - I am addicted to Shopper's Drug-mart Optimum Points. Yes, I get a lot of stuff free but you gotta spend it to get it. So, I only do a big shop in Shopper's when I can max out my points. This way I am getting what I use and what I need for free.

Air miles - I love them too. So, I use my Avion Visa like a debit card - and - yes it does pay off. As long as you pay off the balance each and every month. So, next year or the year after I will have a free trip. Again, you gotta spend it to get it.

This spend to get mentality is not good for everyone because you do need to be disciplined in paying it all off. So far, I live within my means so this has all been working in my favour.

You have to be self-motivated when your retired too. You know the days can just come and go and get pretty boring if you don't keep busy.  I don't have a problem with this as I am very motivated in a good way.

If the problem of gaining weight presents itself this winter - I will join a gym. I think that I get enough daily exercise right now because the weather has been so good and I just love going for walks.

I have been applying here and there for part-time jobs in the neighbourhood. I mean I don't want to commute if I don't have to. The problem for retired people is this: a lot of people are out of work so they push your application to the back of the pile. Christmas is coming so I am hoping that I will get a few interviews. The extra cash would be really nice.

Another consideration is to apply for a co-op apartment that is geared to income. If you don't have anything but your pension then that can save you hundreds of dollars a year. The problem in Toronto is that a lot of people are on these lists and you want to be in a nice neighbourhood and have a nice cozy place that you can enjoy. You have to like your place because your there a lot. I know someone who has been on these lists for at least ten years - well - that is something else.

Hopefully, your health will hold out so that you can do some part-time work. You know that is so very important. Right now like I said it is finding someone that will hire a retired person. You cannot lie on your resume so when they ask why you left a job and you tell them you retired I think it is a blessing and a curse.

Get creative in how to save money. Put your extra cash in a money jar. So, you don't buy lunch - that money goes in the money jar. Or, you sold something on kijji - that money goes in the jar. It will add up quickly and having some savings each and every month is smart.

For seniors who are in such bad shape they need to go bankrupt - make sure you know what your doing. Do not go bankrupt in the year you added to your RRSP. Go bankrupt if you have to the following year. You must be one year past your contribution or they will claw at your RRSP's and that would not be good.

Instead of going bankrupt see if a good budget will do the trick. Or, go to a financial analyst and see if you can do a Proposal instead. You will have to cut up your credit card if this happens to you. So, if you can get a few paid jobs, errands, dog walking, cleaning - that may save you from this problem.

Do a lot of reading - that is free. Go to the public library and get your DVD's. Stay away from paper-view movies. I have my friend pay half if I do rent one. I go half's on pizza too if that is your weekly ritual.

Last but not least - don't give up on yourself. When you pray to the Universe - good things are coming. Tomorrow is a new day with so much promise. If you have your health - you do have your wealth.

That's it for today.

Your - Diva Money Saver