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Retiring can be an exciting time, however, it can also be scary because you no longer are earning an income. If you are concerned that you might go through your money too quickly during your retirement, there are things you can do to improve your chances of success. It can take a good deal of proactive planning , but slashing your spending is the key to ensuring you have enough money to enjoy being retired.
Move to a Cheaper Area
A great way to help your savings last throughout your retirement is to lower your cost of living. One way to do that is to move to a less expensive geographical region. You can find that, in certain places, housing and regular expenses, such as groceries, are cheaper, which can help decrease your outflow. For instance, if you rent an apartment and currently pay $2,000 per month on rent, if you relocated 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 ¹ or both, it can help your retirement savings last decades longer. In some major cities, you don’t even need a car because there is plenty of public transportation.
Take Advantage of Senior Discounts
Senior discounts is one area where senior citizens definitely have an advantage. You can receive discounts through AARP, AAA and other companies, which can help you to save additional 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 accrue back into your savings.
Related: Are You Afraid to Retire?
Cut Your Grocery Costs
Consider changing your grocery shopping habits. Instead of buying brand name foods and household items, purchase 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 ² 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 times³ 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.
²https://www.usatoday.com/story/money/personalfinance/2014/09/30/retirement-ways-to-cut-spending/15327765/ USA Today, September 30. 2014
³https://money.usnews.com/money/retirement/slideshows/10-ways-to-reduce-the-cost-of-retirement?slide=10 U.S. News, June 23, 2014