In reality, it’s the start of a whole new journey down a road that can often be rough in terms of balancing a budget, limiting expenses and making sure you can afford your basic needs.
For some people, retirement comes with pensions, 401(k)s and other forms of savings. However, many Americans are forced to make due with social security, a limited income that is often stretched to capacity during times of inflation and economic strife.
As you get older, chances are you’ll need to visit the doctor more often than not. Medicare might cover some of those expenses, but not all of them. Even one checkup can put a dent in your monthly budget.
“Prescription medications and out-of-pocket medical expenses can be significant,” remarked Marty Burbank, an estate planning and elder law expert.
“One strategy to reduce these costs is to utilize Medicare’s Extra Help program, which can lower prescription drug costs,” Burbank suggested. “Additionally, consider using generic medications, and always compare prices at different pharmacies.”
Laura Redfern, a certified financial planner and certified financial transitionist at Shadowridge Asset Management, LLC , suggests being savvy about food costs.
“Most people know that eating out can get expensive; but with the rising costs of groceries, you may want to do the math on which is actually a better deal,” she said.
Redfern cited that example of eating out and mentioned that “if you skip the costly beverages (drink water) and unnecessary extras (like appetizers and desserts), that can cut down the price of a meal quite a bit.”
You can also try looking for coupons, BOGOs and other special deals from the restaurant.
“Consider either splitting an entrée with your spouse/friend, or taking half home for a second meal later,” Redfern explained.
Practicing these tips can sometimes make the cost of eating out less than the cost of groceries, depending on the purchase.
Another money-saving strategy Redfern recommends is limiting the use of “convenience” apps — like UberEats and DoorDash.
“If you look at the markup on these services, it’s ridiculous,” she continued. “Unless it’s absolutely necessary, when you are eating at home, prepare your meal at home.”
Redfern suggests you save eating out for when you can make it a special occasion and enjoy the entire experience, including the atmosphere and opportunity to get out of the house.
You might be done working, but you still have to pay for your housing one way or another, an expense that seems to be trending upward steadily with each passing year.
“Rent or mortgage payments, along with maintenance and utilities, are major burdens,” explained Burbank. “Downsizing to a smaller, more energy-efficient home or moving to a community with a lower cost-of-living can help.”
For homeowners, Burbank recommends looking into reverse mortgages which can provide additional income, but he also shared that the decision should be carefully considered with professional advice.
zamrznutitonovi / iStock.com
Entertainment
Movies, cable, streaming services and the like can all add up — and are constantly rising in price. So why not try to seek out some free options for entertainment?
According to Redfern, this is especially easy to do during the summer because “when companies know that families are looking for affordable things to do, you can find a surprising number of free options out there.”
She suggested, “Start with an internet search [of] ‘free things to do in my city’ or contact your local visitor’s center. You may discover there are creative and more affordable ways to entertain the grandkids than taking them to an expensive theme park.”
Getting things you buy online sent right to your doorstep is a luxury, and one that can often come with additional costs and hefty fees. Redfern advises opting for free shipping whenever it is possible.
“We order online frequently these days, and shipping can contribute to a significant part of the cost,” said Redfern.
She noted that many companies will offer free or discounted shipping on your first order if you sign up to receive email or text promotions, which are able to be canceled at a later time.
“Or, some companies will offer free shipping if your order is above a certain dollar amount,” continued Redfern. “Rather than overspending and buying things you don’t need in order to reach the free shipping amount, consider going in with a friend or neighbor on the purchase. Then you both win!”
Cars are great to have on hand for spontaneous trips and allow you the freedom to live your life in retirement how you want to. Unfortunately, owning, fixing and insuring a vehicle is a costly endeavor that could be eating up your social security check.
Instead, Burbank encourages retirees to try public transportation, carpooling or even ridesharing services, which can reduce these expenses.
“Additionally, many communities offer discounted or free transportation services for seniors,” he added.
Tomsmith585 / Getty Images/iStockphoto
Utilities
Utilities — your electricity, water and even your phone bill — can really eat away at your monthly budget. Luckily, there are ways to reduce these living and communication expenses.
“Implementing energy-saving measures such as improved insulation, energy-efficient appliances and taking advantage of energy assistance programs can help,” said Burbank. “For communication, consider low-cost phone and internet plans designed for seniors.”
Redfern concluded that if you are finding living on a fixed income “…as drudgery and you beat yourself up about your budget, you’re more likely to get frustrated, bored and/or depressed.”
She continued, explaining, “Pressure isn’t the solution. It’s neither healthy nor sustainable and can lead to abandoning or blowing up your best-laid plans after a few months.”
To help you stay motivated and stick to your goals, Redfern suggests involving your loved ones as a support network.
“These can be cheerleaders on the sidelines or partners who participate in budgeting alongside you,” said Redfern. “People who make budgeting fun not only find it a more pleasant experience, but they also are more financially successful in the long run.”
Get updates delivered to you daily. Free and customizable.
Welcome to NewsBreak, an open platform where diverse perspectives converge. Most of our content comes from established publications and journalists, as well as from our extensive network of tens of thousands of creators who contribute to our platform. We empower individuals to share insightful viewpoints through short posts and comments. It’s essential to note our commitment to transparency: our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. We strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation. Join us in shaping the news narrative together.
Most Popular
Comments / 0