Financial and Retirement Planning Blog

5 Ways for Retirees Can Slash Their Expenses

Retiring can be an exciting time, but it can also be scary because you are no longer earning an income. When you’re retired, you rely on your investments on which to live, which can be worrisome if your expenses are high. If you are concerned that you might go through your money too fast during your retirement, there are things you can do. It can take a good deal of planning and being proactive, but slashing your spending is the key to ensuring you have enough money to enjoy being retired. Here are some ways;

Move to a Cheaper Area

A great way to ensure that your savings last longer after retirement is to lower your cost of living. One way to do that is to move to an area that is less expensive. You can find that, in certain places, housing and regular expenses like groceries are cheaper, which can help you save money. For instance, if you rent an apartment and currently pay $2,000 per month on the rent if you moved to a different city where the rent would be $1,300, that would save you a considerable amount of money each month.

Sell at Least One of Your Vehicles

If you own a car, you already know it’s one of your biggest expenses. You have to pay for insurance, registration and periodic repairs and maintenance. On top of those things, you also have to pay for gas when you regularly drive. If you and your spouse have two cars, that’s double the expense. One car alone could cost your entire Social Security benefit when you’re retired. If you get rid of one of your vehicles or both, it can help you to save enough money for decades. In some major cities, you don’t even need a car because there is plenty of public transportation.

Take Advantage of Senior Discounts

One thing that senior citizens definitely have to their advantage is that they can take advantage of senior discounts. You can receive discounts through AARP, AAA and other companies, which can help you to save money after you retire. Establishments like restaurants, hotels and auto repair service stations also offer discounts for senior citizens, so if they are not automatically offered to you, you can always ask about a discount. You can stash all the savings you get into your savings.

Cut Your Grocery Costs

Consider changing your grocery shopping habits. Instead of buying brand name foods and household items, get generic instead. You will find that they can be just as good in taste and quality as the brand names. You may also want to buy your groceries in bulk, which you can do at wholesale clubs. In the long run, it can save you a great deal of money each year, meaning you will have more for your savings.

Additionally, once you are retired, you should cut down on eating out because it can be quite costly. Cook in at home more often. It will not only help you to save money but is healthier as well.

Travel During Off-Peak Times

No doubt, once you retire, you will want to travel. Because you no longer have the obligation of work, you can travel whenever you want. However, doing so during off-peak times is the cheapest option. It can also save you some headaches because it means you won’t be traveling when everyone else is going away and you can avoid excessive crowds. So, the next time you go on a vacation, try planning it around an off-peak time of year.

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Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor.  Pennsylvania Wealth Management and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

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