How Retirees Can Save Money and Prevent Overspending

How Retirees Can Save Money and Prevent Overspending

( – If you’re a retiree on a fixed income, watching every penny is important to your budget. Unfortunately, overspending is a challenge for many seniors.

If you’re a senior who faces this problem, you’re probably not overspending on big trips, luxury vacations, or spoiling the grandkids. Instead, you may be spending money on needed medical issues, housing repairs, or other unexpected expenses you couldn’t have anticipated.

You may also be spending money you don’t have to spend.

What are some practical things you can do in retirement to reduce expenses without forcing you to reduce your quality of life?

  1. Grocery shop once per week. Be intentional and write a list of what you need or want for the week. By avoiding regular trips to the grocery store you’ll eliminate impulse buying and save a little gas money in the process.
  1. Pay insurance annually. You may be accustomed to paying insurance premiums monthly to avoid that big hit. However, you may be paying more money for that service than you have to. Insurance companies are loaning the money to you upfront. You pay a little more each month in interest for the benefit of a smaller monthly payment. If you can afford to pay it all at once, you’ll save some money each year.
  1. Ask for a lower interest rate. If you have any type of debt (other than a car or home), you can try to negotiate a better interest rate while they are low.
  1. Consider other Medicare coverage. Throw out the assumption that last year’s Medicare coverage gives you the best deal today. That would be a mistake. Every year, shop around and see if you can find a better deal. You might get lucky and save some money.
  1. Use the library. Did you know that the library has the latest books and movies you can rent for free? Many libraries also offer free eBooks and video streaming if you don’t want to leave the house and are comfortable with technology.
  1. Don’t pay late fees. If you don’t have a budget that lists what date a bill is due on, it may be time to create a checklist. Don’t give your money away because you forgot to pay a bill. It adds up quickly.
  1. Use programmable thermostats. Why heat or cool a room you don’t use often or when you know you’re not home? Easy to use technologies can help you save a lot of money on your comfort.
  1. Generic is good. You don’t have to buy brand names. Look for store brands on food and drugs. You can save as much as 40% or more on generic items over brand names.
  1. Ask for a discount. Many retailers, grocery stores and restaurants offer senior discounts. Don’t be afraid to ask. Regularly saving 10% adds up really quickly and can help save hundreds of dollars or more every year in your budget.

~Here’s to Your Prosperity!

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