6 Signs You’re Spending Too Much on Retail Items in Retirement

Retirement should be an exciting time of life when you get to enjoy your reward for working hard, raising a family, building wealth or accomplishing any other life goal you had. Unfortunately, for most, retirement also means balancing a fixed income against unlimited possibilities. There are also essentials, such as healthcare, housing, food and transportation, that need to be met. And while it’s vital that discretionary spending doesn’t interfere with these, you’d be surprised how often it can — especially with retail items.

“In retirement, retail spending on items such as decor, clothes and electronics can easily accumulate without notice, and I’ve observed some common patterns that suggest when someone may be overspending,” said Cliff Ambrose, FRC, CAS, founder and wealth manager of Apex Wealth .

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Considering this, here are six signs to watch out for that you’re spending too much in retirement .

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You’re Carrying a Credit Card Balance

According to the Federal Reserve, nearly 34% of seniors aged 65 to 74 carry credit card debt, with the average balance standing at $7,700. Thankfully, seniors 75 and older do a bit better, with 29.8% carrying a credit card balance at an average of about half that of their younger cohort.

But according to Ambrose, any credit card balance in retirement could be a sign that you’re off track in your spending habits. “Relying heavily on credit instead of cash is a red flag, especially if credit card balances aren’t paid off in full each month,” he said. “Spending more on credit can make it easy to lose track of how much is being spent from actual liquid assets.”

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You’re Buying Unplanned Large Items

Retirement is sort of like a forced budget — one you spent years (hopefully) perfecting. So while good budgets can handle the occasional car breakdown or home repair, large unplanned buys can break them. And since you are on a fixed budget, too many of those can send you into ruin, or at least financial stress.

“Picking up an extra gadget or piece of furniture without budgeting for it can gradually erode retirement savings,” Ambrose said.

You’re Buying Unneeded Items

Not to sound like a budget hawk, but again, if you are on a fixed income in retirement (likely), blowing the budget can also blow a hole in your enjoyment — or worse.

“Impulse buying is one clear indicator, as purchasing items without a defined need or plan can often signal a loss of control over spending,” Ambrose said. “Retailers do a great job of making everything seem essential, but it’s important to stay aware.”

So if you didn’t get in the habit during your working life, now is the time to live by the mantra “need not want.”

You Have Dwindling Space

There are many reasons to declutter during retirement. Too much stuff can contribute to falls, the No. 1 reason for injury in adults age 65 and older, according to the Centers for Disease Control and Prevention. Clutter can also lead to stress, and, frankly, your kids or other heirs don’t want to have to deal with it.

Finally, according to Ambrose, running out of space can be a sign of overspending. “When homes start becoming cluttered with new items, it’s time to reassess buying habits, as owning too much can quickly become a financial burden,” he said.

You’re Using Investment Money

Your retirement should be a carefully thought-out balance of spending, saving and investing. But if your purchasing of nonessential items or services begins to dig into your savings or, worse, your income-generating investment money, it’s red flag time.

“If spending is cutting into savings or reducing contributions to investments, this is a serious sign that priorities need realignment,” Ambrose said.

You’re Not Checking In

Finally, as with any addiction big or small, when you begin to hide your behavior, or avoid healthy habits, it’s time to take a hard look at your decisions. This goes for retail spending during retirement too.

“Having regular check-ins with a financial advisor or even a partner can help ensure spending stays within a healthy range,” Ambrose said.

This article originally appeared on GOBankingRates.com : 6 Signs You’re Spending Too Much on Retail Items in Retirement