Ways to Cut Spending in Retirement

The general rule is that retirees need 80% of their working income to maintain their current standard of living. We have scoured the internet and have found an overwhelming number of helpful tips** to assist you in saving money each and every month!

  • Reevaluate Monthly Expenses – Take a look at your monthly bills and see what fees or services can be reduced if not eliminated. Are you paying for premium cable channels that you don’t even watch? Perhaps you have a monthly gym membership that you haven’t used in a year. Analyzing your monthly bills and getting rid of the excess is a sure way to reduce your monthly expenses significantly!
  • One Car Household – If you own two vehicles, yet neither you nor your partner is working, a significant way to reduce expenses is to become a one-car household. Even if you do not have a second car payment, the savings in car insurance alone makes it worth considering.
  • Switch to Store Brand Products –  Did you know that by simply switching to store-brand products you can save 25-50%?
  • Shop with a List: How many times have you walked into a grocery store to purchase “just a few items,” only to exit the store with a cart full of purchases? It is a proven fact that you are much less likely to make impulse purchases when you shop with a list. And don’t go food shopping when you’re starving!
  • Have Snacks, Will Travel – With just a little planning, you will be amazed at how much money you will save by eliminating unnecessary and expensive trips to the convenience store for food. Before you leave your home for more than an hour or two, grab a drink and snack to go! Better yet, make sure you put your drink in a reusable bottle!
  • Borrow Books and Movies –  Why buy expensive movies on demand or books from your local bookstore when you can borrow them for free from your library? Added benefit: you will also be helping to save a tree.
  • Travel Off Season –  When the grandchildren are back in school, travel costs go down. Next time you are planning to get away, take school schedules into consideration.
  • Discounts Galore –  From movie tickets to dining out, discounts for seniors are everywhere. Ask for a discount on every outing. You might be surprised to find how many exist!
  • Cash Only –  Whenever possible, opt to pay in cash. When you have a fixed amount of money in your wallet, you are less likely to overspend.
  • Dine at Home – Who says you can’t have a romantic candlelit dinner in the comfort of your own home? Even if you can’t resist the temptation of a restaurant-cooked meal from your favorite spot, try the take-out option next time. You will be amazed at how much money you can save when you do not have to pay for beverages or tips.
  • Credit Card Rates – If you are one to carry a monthly credit card balance, you can still save money by lowering your interest rates. Credit card companies are more willing than ever to work with their clients. A simple call could save you a bundle over time with interest expenses.

 

Bundle all these cost-saving tips together and you may have enough set aside for a major purchase—maybe even something you didn’t think you could afford in your retirement years!

Phil Cannella
Partnered with CBS Radio Network, Phil Cannella reports on the issues most important to the American retiree.
Phil Cannella
- 6 days ago
Phil Cannella

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