You spent years raising your children, and now they’ve all moved out. They’ve gone off to college or set up their own households.
The house feels unusually quiet.
You’re an empty nester. What comes next?
Don’t fall into the trap many empty nesters do. Thrilled by newfound freedom, they fritter away cash on extravagant trips, pricey pastimes, dining at upscale restaurants or unnecessary home upgrades.
Don’t do that. Do this instead.
This is a significant life transition, comparable to marriage or childbirth. It’s the perfect moment to pause, reassess your finances and craft a sensible plan for this next chapter.
Here’s our checklist of six actions empty nesters should take.
1. Review Your Retirement Nest Egg
Reality check: many Americans aren’t setting aside enough for retirement.
A recent report from the Economic Policy Institute shows the typical family lacks sufficient retirement savings.
Wondering how your savings measure up? Try this calculator. It will estimate how much you should be saving to stay on track for a comfortable retirement. Even better, consult a financial planner.
Not sure if your stock-to-bond allocation is right? Consider a robo-advisor like Blooom, an app that can optimize and monitor your 401(k) automatically.
2. Reassess Your Spending
Monitor your outlays and create an updated monthly budget. With your kids gone, you might be spending less in some categories.
Again, resist the urge to splurge. Many empty nesters don’t boost their savings. A study from Boston College discovered that 401(k) balances for empty nesters rose by only about 0.3% to 0.7% on average.
In short, they keep spending roughly what they did before.
3. Turn That Spare Bedroom into Income
Decide what to do with the vacant bedroom or two. Perhaps convert one into a home office or craft space.
Or consider listing a room on Airbnb to earn extra cash. Search “Airbnb empty nester” and you’ll find plenty of examples.
Seniors, particularly older women,are the fastest-growing segment of Airbnb hosts in the U.S. If you’re new to hosting, this is a helpful place to begin.
4. Think About Downsizing
With an empty nest, it may be time to consider moving to a smaller place.
Relocating to a smaller house can lower mortgage and utility costs. Choosing an apartment can eliminate maintenance, yard care and reduce property taxes.
Start reducing clutter at home first. To make moving easier and less stressful, purge items you no longer need.
Clear out old DVDs, Blu-rays and CDs using the Decluttr app. Scan the barcode with your phone and Decluttr will give you an offer. Currently, it’s adding $5 to orders when you use code FREE5 at checkout.
You can also sell almost anything with the Letgo app. Snap a photo and create a listing in about 30 seconds.
5. Discuss Money with Your Adult Children
Have a frank conversation with your kids to set realistic expectations about how much financial support you’ll provide now that they’re on their own — whether for tuition, housing, insurance or groceries.
6. Rework Your Grocery Strategy
On the subject of food, it’s time to adjust your shopping list.
Feeding fewer people should lower grocery bills. But with no kids around, you might prefer eating out more often, which can raise costs.
Plan simple home-cooked meals sized for two.
Since we’re discussing groceries, here’s a comprehensive list on ways to save on grocery shopping.
And if your dining out increases, check out our tips for saving at restaurants. Also consider Ibotta, a free cash-back app that offers rebates at grocery stores, eateries and bars.
In short, enjoy this new empty-nest phase! The wiser you are about handling it, the better your outcome will be.
Alex Mercer ([email protected]) is a senior writer at Savinly. He still has a busy household.
