Entering the retirement phase can be a major step in one’s life. It is not uncommon for one to worry about the decision. After all, it does come with some massive financial responsibility. According to a recent ERBI survey, 27% of retirees feel they are spending more than they can afford.
Fortunately, there are plenty of resources new retirees can utilize to ease into the next chapter. The following lifestyle changes are some of the ways financial experts advise their clients to follow to secure their spending habits. If you fall into the category of a newbie retiree, these tips could help you thrive as you say goodbye to the workplace.
Look For Pharmacy Deals
Retirees should take their health seriously. After decades of hard work, you want to spend your golden years in the best condition possible. However, doctor visits and prescription medication can be quite expensive. If there are discounts on these bills, you should definitely take advantage of them.
Luckily, prescription discount cards such as GoodRX and SingleCare have saved seniors small fortunes on their weekly pills and vitamins. Signing up for these programs can keep as much as 80% of prescription fees in your wallet. Be sure to ask your primary physician if you qualify for these cards on your next visit.
Become a One Car Household
When you and your partner worked full-time, it was practical for each of you to have a car. But now that you are both retired, do you really need the extra car? How often are both of you out and about, and where does it make sense to pay for the extra vehicle?
Selling the extra car can save you money on car payments, insurance, gas, and maintenance. You can even use some of that money to buy matching bikes to ride around town for exercise. You never know; you might eventually sell the second car and use your bike as your primary mode of transportation.
Be Credit Card Smart
Credit cards can be a retiree’s best friend. Plenty of cards offer hefty rewards and travel deals on everyday purchases. Using these credit cards is a fantastic way to rack up points for future travel and vacation expenses.
Still, you have to be smart when purchasing with credit. Be sure to pick out a card with zero annual fees, low interest rates, and rewards that fit your lifestyle. If you already have a card with a yearly fee, swap it out for a new one. You also want to avoid acquiring debt by paying off the balance each month.
Ditch Unwanted Subscriptions
How many times have you signed up for a service and only used it a few times? The next thing you know, you’re paying for the subscription for months without noticing because it is a minimal monthly charge. Those charges can easily add up to a healthy sum of cash at the end of the month, not to mention the year.
Instead, stop and look at your monthly bills. Look for magazines, newspapers, streaming services, memberships, and anything else that automatically comes from your account. How many of these do you still use? How many can you part with? You may be surprised by how much money you can save.
Set Up Auto Pay
Speaking of automatic payments, it is smart to set up auto-pay for the monthly payments that you need to make. These can include bills such as mortgages, car loans, insurance, credit cards, utilities, and other loans. Many companies offer a discount for those who use auto-pay each month.
In addition to saving money, autopay also lets you live your life to the fullest without the risk of forgetting a payment. Now, you can go on vacation and relax without the added stress of late payments and pesky fees that come with them.
Meal Plan for the Week
Meal planning is a great way to save money because it avoids food waste. By setting a weekly menu, you can avoid buying excess food. It is also convenient and simple to prepare lunches ahead of time for a quick microwave zap.
Meal planning can be a fun activity you and your partner can participate in each week. It could be fun to pick out ingredients, try new recipes, and get creative in the kitchen. There are plenty of TV shows and cookbooks you can use as a reference if you are looking for some healthy, delicious meals.
Cancel the Cable Plan
I know what you are thinking. You are finally retired, and now you have time to relax and enjoy some television you missed out on while working. Don’t worry, you can watch all the shows you want, but that old cable bill can cost over $100 a month, and it might not carry the programs you wish to watch.
Instead of wasting all that money, cancel the cable and opt for streaming services. Most of these services, like Hulu, Netflix, HBO, AppleTV, and Paramount, cost less than $10 a month, and you can add and subtract based on what shows you want to watch.
Refinance Your Home
Refinancing your home can lower your mortgage payments a great deal. Even if it is only $250 a month, that adds up to $3,000 at the end of the year. That money can be used to enjoy your free time, pay off bills, or add to your retirement fund.
This is not a simple endeavor. If you plan to take this route, it is imperative to research lenders, understand the market, and get the APR you want. The process can be confusing and take some time, but the amount of cash you can save should be enough to make it worthwhile.
Take Advantage of Senior Discounts
Almost anywhere you go, there are discounts for senior citizens. These can be at your local grocery store, movie theater, restaurant, department store, or online services. You can also find discounts through your utility provider, and if you are energy-conscious, these discounts could end up as high as $1,000 a year.
Basic habits like using energy-efficient light bulbs, turning off appliances, and avoiding usage in peak hours can shrink your monthly utility bill. If you want to take this energy-saving lifestyle a step further, you can invest in solar panels to further reduce energy consumption.
Move into a Smaller Home
I get it. It may be hard to say goodbye to a house you have lived in for decades. But downsizing from a large house to a smaller one is the fastest way to save a ton of monthly money. Depending on the situation, a retired couple could save as much as $20k each month.
Many retirees admit that living in a smaller home is helpful for keeping it well-maintained and clean. If you are choosing to live in a smaller home, there are many senior communities that offer deluxe condos and amenities catered to a retired lifestyle.
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