Reducing Expenses

• 1). Locate all your bills and statements. You need to have a firm handle on where all your money is going. This includes utilities, food, credit cards, mortgage/rent, transportation and entertainment.
  
  
• 2). List all your bills. Using a spreadsheet or pencil and paper list all your recurring bills like cell phone, electricity, trash pickup, rent, taxes and insurance. Also list estimates of what you are spending on variable expenses like food, restaurants, gas, clothing and haircuts.
  
  
• 3). Categorize each item. Next to each item write an "N" for necessary or a "U" for unnecessary. Be brutally honest. Will you die if you don't have this? If you won't it gets a "U."
  
  
• 4). Prioritize unnecessary items. Take all the items that you gave a "U" and prioritize them by giving the item you would most like to keep a 1 and the least important item the highest number.
  
  
• 5). Cut the least important first. Starting with your highest-numbered item begin cutting until your current income exceeds your estimated expenses. If after cutting all unnecessary expenses your expenses are still above your income, you need to increase your income.
  
  

Increasing Your Income

• 1). Calculate how much extra you will need. Once you know how much your monthly bills are and how much your retirement income is, you can calculate how much you will have to earn. This will determine whether you need to work a few hours a week or if you need a full-time job.
  
  
• 2). Determine the type of job you will look for. If you only need to work a few hours extra each week you might be able to find odd jobs from friends or neighbors. Or you may be able to find a part-time job. If you need more, you will have to begin a full-fledged job hunt.
  
  
• 3). Inventory your assets and liabilities. Age is often considered a liability when seeking full-time employment, so look for areas where it would be an asset. Seniors are often considered more reliable and they definitely have more experience than younger workers. So look for jobs where reliability and experience are valued.
  
  
• 4). Look for positions that use your previous work experience in new ways. Rather than doing the job yourself, can you teach the next generation your skills? Perhaps you can find a position as a consultant or mentor.
  
  
• 5). Mine your contacts. As a senior you have had a long time to make contacts. You have met thousands of people over your lifetime. Reconnect with them, put the word out and see if anyone knows of the right position for you. With a large network and some luck the right position might be just around the corner.