How To Cope If Inflation Destroys Your Retirement Budget | Personal finance
Of course, the danger of taking out a home equity loan or HELOC is that it is a secured loan. And if you fall too far behind on your payments, you risk losing your home. At the same time, home equity loans and HELOCs are a very affordable way to borrow, and given today’s capital levels, they are also quite easy to obtain.
3. Use your home as a source of income
If you’re sitting on a larger property than you need, you may have a few options to convert your home into a source of cash to get you through these tough times. First, if you’re willing to downsize, you can sell your home and buy a cheaper one, while using the proceeds from that sale to pay for your living expenses. However, this may not be a great immediate solution, as closing a home can take months and you may need an income boost now.
Another option is to consider renting out part of your home. This could mean a tenant moving in with you in a separate area of your home, such as a finished basement. Or, you may be able to rent storage space in your home or even a parking spot in your driveway. Remember, these aren’t things you need to do permanently, until inflation slows down and you can manage your bills more easily.