Whether you’re 10 years away from retirement or retiring this year, money management and saving don’t stop when your regular job income does. In fact, financial management in retirement can be a stressful experience if you don’t plan carefully beforehand and continue your saving habits during your golden years.
To avoid the panic-inducing question of whether your current nest egg will last as long as you do, there are several retirement mistakes to avoid. Don’t increase your spending, pay attention to potential income opportunities, and never borrow money from your retirement account for nonessential purposes.
Luckily, there are many ways to financially secure yourself and your spouse during your retirement years. Thankfully, these strategies don’t necessarily involve taking on a part-time job to supplement your income. Instead, you might opt for a passive income, which requires minimal effort for considerably good financial rewards.
Passive Income Retirement Ideas
Invest in Peer-to-Peer Loans
When you’re retired, you’re probably not interested in long-term investment strategies anymore. Instead, you should try to generate a passive income stream through short-term investment options, such as peer-to-peer lending platforms. Peer-to-peer lending is highly customizable and typically leads to higher yields compared to other investment options. Retirees with a high personal net worth are particularly well-suited for peer-to-peer lending.
Lending Club is a great passive income source because you can choose which type of borrowers you want to lend money to. That way you can avoid those with lower credit since they’re a higher risk. And, you can automate investing through monthly deductions from your bank account. Through Lending Club, you’re essentially lending other consumers money for their personal loans, mortgages, or student loans. You then receive returns in the form of interest paid on those loans.
Peer-to-peer lending is an awesome opportunity to get great returns on your investments in a relatively short time frame. You can try out different platforms like PeerStreet or RealtyShares to see which one works best for you.
Host with Airbnb
Have you considered downsizing your living situation? Do you want to reduce your monthly expenses and dedicate more time to hobbies? If so, renting out your home instead of selling it might be a great idea for generating a passive income. Thanks to Airbnb and its massive, easy-to-use platform, you can temporarily rent out your home to individuals and families from all over the world.
Many retirees have turned to Airbnb to supplement their retirement incomes. The website is easy to navigate and you get significant control over how much you charge. You can also decide whether you want to charge certain fees. Those include cleaning fee, check in/check out times for guests, and a handful of other policies.
If you don’t want to be on the premises when guests are present, you can even install key locks or number pad door entry systems to allow guests to access the property when you’re not there. This means you don’t have to revolve your schedule around guest arrivals and departures.
Ultimately, Airbnb is an incredibly flexible passive income option. It can free up much more money in your budget for things like traveling or investments. It also comes with the added benefit of being able to meet fascinating people from all walks of life.
Monetize Your Hobbies
Your hobbies may seem like active endeavors, but since you were planning on doing these activities regardless of their monetary potential, they’re definitely forms of passive income. Monetizing a hobby can be as simple as distributing flyers throughout your neighborhood to advertise your services. Some of these services may be gardening, lawn mowing, tutoring, childcare, pet-sitting, auto repairs, or tailoring. Or, you could advertise on social media with a free account on Facebook or Twitter.
If you love creating handmade items, you could sell them online through sites like Etsy or local trade fairs, which also offer socializing opportunities! The sky’s really the limit when it comes to monetizing your hobbies.
If you’re like most people who worry about whether they have enough money to retire, passive income opportunities are ideal for preserving your savings and even making more money to fund your travel adventures and hobbies during retirement. Even if you currently have little to no retirement savings and you’re 60+ years old, these three passive income options are perfect for covering your expenses without having to keep working.