February 25, 2020
6 Tips for Cutting Costs in Retirement
Make the most of your retirement budget with these six tips.
You worked hard to be able to enjoy retirement but transitioning to living on a fixed income can be a challenge. By reducing your monthly expenses, you can increase your retirement income and give yourself more freedom. The following tips can help you cut spending and make your money go further.
Downsize your home.
Without kids living at home, chances are you don’t need all the extra bedrooms and space. Finding a smaller home can not only reduce your mortgage payment, but can mean reduced utility and maintenance costs. Use the extra money to pursue new hobbies or travel.
Relocate.
Moving to a new, less expensive neighborhood or city can help reduce your cost of living. Take property prices, taxes, utilities, food, and other local services into account when deciding on a new home. Getting more for your money can allow you to do more with your free time.
Reduce transportation cost.
For some people, having two cars—or even a car at all—becomes unnecessary due to their new retirement lifestyle. This can mean lower insurance, gas, maintenance, and repair costs.
Compare.
Do your research when choosing insurance, cable, internet, mobile phone, and other providers. Depending on where you live, providers may compete on price, senior discounts, or other appropriate discounts.
Use your discounts.
Senior discounts can get you more than cheap coffee at the local diner. Discounts and benefits for retirees are plentiful and easy to find. Look online for savings on everything. Dining out, shopping, travel, entertainment, movie tickets, museums, and magazine subscriptions add up. Check out offers available to AARP members. Make it a habit to ask for senior discounts when making any purchase.
Get creative.
More free time gives you more opportunities to eat out, enjoy new hobbies, and travel. Manage spending without missing out on the fun by finding cost-effective ways to do what you want. Try to travel during off-peak seasons. Use the library for books and movies. For in-home entertainment, check out a cheap video streaming service. And always take advantage of free days or senior discounts at museums or attractions.
Reducing unnecessary expenses increases your freedom to enjoy retirement without stressing about money. If you have questions about planning or budgeting for retirement, stop by your local branch and speak with a personal banker for additional cost cutting solutions.
