Six Ways for You to Save Money as a Retired Senior
Saving money is one of those tasks that is easy for some people but difficult for most. Seniors, in particular, often have a hard time continuing to build savings if they no longer have a stable flow of income. However, you can still save money even as a retired senior. While a nest egg can differ based on individual circumstances, living on a fixed income means that every dollar counts in order to continue living the life they are accustomed to.
1. Reduce the Cost of Your Car
Prior to retirement, you may have owned a car to go to and from work. Even if you don’t use your vehicle for work anymore, the cost of upkeep can still put a dent in what you have in savings. Consider if it’s more cost-effective to continue with frequent car maintenance and repair costs or to purchase or lease a newer car.
2. Cut Off the Power Bill
By cutting off your power bill, we don’t mean completely turn off your power. We’re talking about significantly reducing the cost of it. You may have noticed an increase in your post-retirement utility bills. There are a number of reasons why this is happening. One of the most common reasons is that you’re leaving unused electronics plugged in or lights are left on when you’re no longer in the same room. You can also look for ways to reduce heating and cooling bills by using a programmable thermostat, and sealing up drafts around doors and windows. Even the slightest air leak can cause the furnace or air conditioner to turn on more than it needs to, causing monthly bills to skyrocket.
3. Ensure Everything is Being Paid
You may be retired, but that doesn’t mean you’re exempt from paying off your bills and debt. To have a good idea of what you have to pay each month, create a list of all your current bills, subscriptions, and debt payments. This will help you organize a budget to ensure you pay everything on time. If you’re looking to relieve yourself of some of these payments, cancel any subscriptions that may no longer be relevant and pay off credit cards you no longer need – and be sure to cancel them.
4. Review Your Existing Insurance Policies
Since you’re no longer a paid employee, you may want to surrender any work-related insurance policies such as long- and short-term disability. Review your life insurance policy; at this point, if your children are self-supporting, you may not need as much coverage as you did when they were at home. Perhaps you need access to a large portion of cash; some insurance policies offer settlement options as explained in this blog post. In addition, a review of your auto policy may reveal some potential savings. Please check with your financial planner and insurance agent for solutions that are best for you.
5. Use Discounts to Your Advantage
Wisdom isn’t the only thing that comes with age. It also comes with a variety of discounts as well. Many businesses, like stores, service providers, and restaurants, offer special discounts for seniors. And all you have to do to get them is ask and provide the necessary information. Such information may also be available on the entities’ websites.
6. Move to a New Neighborhood
You may think that moving does the opposite of helping you save. However, this isn’t always true. Over time, circumstances in your life change and finding a new place to live may help you better adapt to your new circumstances. You may want to downsize to a smaller, independent home or condo, or you may consider a community that specializes in senior living.
Retirement can seem both exciting and stressful; however, following any or all of the above suggestions will hopefully prepare you for an exciting time of your life. Enjoy!
By Drew Allen
Drew is a financial enthusiast, seasoned blogger, and music & sports fanatic. He enjoys spending time outdoors with his wife and daughter fishing and boating. He is dedicated to his 15+ year career in the banking, mortgage, and personal finance industry.
This post is not an endorsement of any particular company(ies); it is for general information purposes only. We encourage you to seek guidance on any of the above suggestions from appropriate industry representatives.