Downsizing and Renting Out Your Home

As you enter retirement, your current home may start to feel too big and expensive. Instead of considering this as a liability, turn it into an opportunity! If you bought a house at a young age, it would likely have been paid off by the time you are retired.

You can reuse some of the equity you saved on your home to put down a deposit for buying another property. Homeowners can either relocate to the smaller of the two and rent out their current home to generate some passive income.

Or they can rent out the smaller house and charge about 25 percent more than their mortgage payment, allowing the rent to generate passive income while simultaneously having someone else pay off the mortgage on the investment property.

Extra Savings Tip: When moving, instead of just kicking your unwanted items to the curb, try reselling them to make extra cash!