Want to retire cheap? Baby boomers planning to retire are finding a new obstacle that their parents and grandparents didn’t face: living longer. This means that boomers have to be more diligent in their budgeting and savings, and need to stay in control of their life and adjust to living on a fixed income.
It’s easy to overspend, but it can be detrimental to retirees living off a fixed-income in retirement. The following tips will help curtail overspending and effectively reduce expenses:
Create a Budget.
This is the most important step for retired boomers to keep themselves on a steady financial track. Take a month to review all spending habits and create categories, such as food, housing, entertainment, etc. to see how you are spending money and then make adjustments accordingly.
Buying common household items in bulk, keeping an eye out for coupons, or shopping store brands all help senior retire cheap. Seniors who don’t want to store bulk buys can also go in with friends and split the cost of a large bulk purchase.
Manage Your Meds.
Generic medications can offer serious savings without sacrificing treatment, but ALWAYS talk to your doctor about making any changes. Don’t be afraid to shop around. Medicine prices aren’t the same at every store.
Create an Efficient Home.
See if your family wants to do a family cell phone plan to share the savings. Talk to your utilities company about senior citizen discounts. Take simple steps to reduce energy use by always shutting off lights, setting the thermostat on a slightly lower level in the winter and wearing a sweater, and not bumping up the air conditioning in the summer. Home efficiency can help you retire cheap if you stick to a plan.
Evaluate your Entertainment.
Entertainment costs can stack up quickly – travel, food, movies, treating family members, etc. There are often alternatives to help off-set those costs. Host a movie/game night at home with friends where everyone brings a pot-luck dinner and shares in the costs. See movies early in the day when theaters show movies at half-price.