How to Retire with Little or No Savings

The current recession has left many baby boomers with limited or even no financial means for retirement. Whether you had a retirement account that was wiped clean by a bad investment, or whether you simply never started a savings or retirement account, there is still hope. Even if you have no savings and nothing in your bank account, you can still retire on schedule. Here are seven tips to help you retire as planned:

1. Start budgeting. Figure out how much money you will need in order to cover the basic costs of living, such as food, rent/mortgage, health insurance, etc. Find out if your retirement benefits or social security plan will cover these expenses. Also, find different ways in which you can lower your total living costs without sacrificing basic necessities such as prescription medications, insurance, etc. To that end, you may need to cut off your cable plan, stop eating out, and negotiate for a cheaper phone plan. Do what you can now in order to live within your set budget.

2. Start saving. Even if you have only a few years left before retirement, start putting aside some cash today into savings. Even a few thousand dollars can go a long way towards supporting you once you are no longer working (such as by paying bills, insurance premiums, minor house repairs, etc.), so it's never too late to start.

3. Generate dividend or interest income. If you already have some money in savings, consider investing that money in dividend-generating stocks. For example, REITs, also known as real estate investment trusts, are high dividend generating stocks that pay out an average of 10%/year. If stock investment is too risky for you, place some of your savings into a CD (certificate of deposit) instead, where it will earn anywhere from 1.5-3%/year.

4. Find ways to make spare cash. Just because you are retiring doesn't mean that you can't find ways to generate side income. Perhaps you have a hobby and can learn how to make money from it. Perhaps you can pick up a part-time job and get paid in that manner. Talk to your friends, and be sure to go online in order to find out more information about money-making opportunities and jobs.

5. Move someplace cheaper. You probably live where you do because of your current job. However, once you retire, you will become much more mobile. Move someplace cheaper, where the cost of living is far less than what you are dealing with now. If need be, consider moving out of the country; Canada, for example, offers health insurance that is quite affordable (or even free) when compared against the United States. Other countries, such as Belize, offer a standard of living that is comparable to the United States but at about half the cost.

6. Sell some assets. You may wish to consider selling some of your assets, such as your home, cars, furniture, and other items. This will give you the much needed cash to rent an apartment, purchase a less expensive vehicle, etc. It will also free up some cash for you to invest for the future or to move out of the country.

7. Barter with your kids or friends. If you have adult children who require childcare or other services, barter with them for a free place to stay in exchange for watching their kids and taking care of the house. In this way, you will not need to pay rent or a mortgage. If you cannot negotiate for a free place to live, then arrange to be paid a certain amount of money for your services.