You have more time on your hands to do the things you love, but you need to keep your finances in line.
Begin by creating a “now I am retired” budget. Tally your monthly expenses so you know where your money is going. Are you eating out more? Are you going to the movies more often? Prioritize what you want to spend your hard-earned money on and make adjustments to cut the areas that aren’t that important to you,
Check out these 5 tips on expenses you may want to consider cutting so you have more money for the things you enjoy most.
5 Tips for Cutting Expenses During Retirement
- Find free entertainment. You have more time to spend doing the things you love, but that doesn’t necessarily mean you need to dish out cash for tickets, registrations and class fees. Many senior living communities, along with village and city centers, offer free entertainment to the public. If you move to a senior living center, there is likely free activities and events on a regular basis. Also consider volunteering. Instead of paying a fee, you’re giving back to society.
- Ask for senior discounts. One of the perks of being a senior is getting great discounts. Some businesses offer well-publicized senior discounts, while other companies provide discounts only to those who ask. It never hurts to ask for a senior discount!
- Re-evaluate your cost of living. Have you conducted a cost of living comparison? Compare your current expenses to the cost of living at a senior living community or in another location, maybe closer to your children. Be sure to include all of your current costs, from groceries to property taxes and hiring out yard work.
- Get rid of your vehicle. Add up the costs of fuel, oil changes, insurance and maintenance. Ask yourself: do you really need to drive anymore? Can you use public transportation or do you live at a senior living community that provides transportation? If you have two vehicles, can you go down to one.
- Downsize your home. You likely don’t need a several-bedroom home with a two-car garage and shed. Consider downsizing to a smaller house, condo or apartment. You’ll have less to care for, which means more time and more funds for you to spend on the things you enjoy doing.