When you retire, you may be on a fixed income. Adjusting your spending habits can be difficult, especially if many of them were set decades ago. But these adjustments can make a big difference. Cutting out unnecessary expenses can save you hundreds of dollars each month, so you may not have to worry as much about running out of retirement money.
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If you want to save money in retirement, you need to look at all of your monthly expenses. Put each item into a need or want category. Then carefully go through your wants to determine what you can live without, or at least what you can live without. You’ll be surprised how a few changes in your spending can mean significantly more money in your pocket. Here are the top six things to stop buying if you want to save money in retirement.
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Entertainment subscription services
Most Americans have at least one subscription service. Unfortunately, those small monthly fees can add up each month, especially if you have multiple subscriptions.
“One of the best ways for retirees to save money is to review their ongoing expenses that eat into their fixed-income budget month after month. Subscriptions to entertainment services, for example, can really add up,” said Erika Kullberg, founder of Erika.com.
The lawyer and financial expert noted: “A study by Bango found that the average American has 4.5 subscriptions and pays an average of $924 per year for these services. This means that retirees can save an average of $77 per month.”
Fortunately, there is a more cost-effective way to indulge in entertainment. “Most public libraries rent DVDs,” Kullberg said. “Retirees may find it entertaining to get out of the house and rent movies instead of paying for multiple entertainment subscriptions.”
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Professional Services
Another easy way to save that can make a big dent in your budget is to hire professional services. Depending on where you live, a cleaning service can cost around $70 per hour, and landscapers can easily cost you $100 per month.
Kullberg, who has over 21 million followers and hosts a popular podcast, said retirees could also “rethink the services they pay for that used to save them time at work.”
An added benefit of doing some things yourself instead of paying for them is that it keeps you active. “Maybe they’ve been too busy to clean their house or take care of yard work around the clock, but they may find that these tasks are a great way to stay active,” Kullberg said. “Using fewer professional services can save you a lot of money.”
Eating out
While eating out may be your favorite pastime, it can be a stretch for your budget. According to Ramsey Solutions, Americans spend an average of about $300 per month on restaurant dining. Limiting the number of times you eat out each week can save you a lot of money in the long run.
“Eating out less is also a great way to save money and forces retirees to learn some fun new cooking skills,” Kullberg said. “Spending more time cooking at home is healthier and can save retirees hundreds each month.”
Overpriced coffee
One of the biggest challenges for a retiree on a fixed or reduced income can be not paying more for amenities. Small things like buying a cup of coffee outside the home every day can add up.
Your daily coffee consumption may be costing you $40 or more per month. Instead of paying $5 for a cup of coffee, consider making your own for a fraction of the cost.
Travelling in high season
One benefit of retirement is that you have the freedom and flexibility to travel whenever you want. With this flexibility, consider traveling when prices are cheaper. If vacations are part of your retirement planning, consider traveling less during peak seasons.
“If you choose to travel in retirement, you can travel outside of peak season and take advantage of cheaper airfare and hotel rates. The same places, but at a lower cost,” says Steve Azoury, ChFC, owner of Azoury Financial.
gas
When you retire, you may be able to ditch your expensive car and switch to public transportation, or simply switch from two cars to one.
“When you retire, you can ‘test drive’ what it would be like if you and your wife only had one car. With the development of ride-sharing services, you could be covered for the occasional inconvenience of needing a second ride,” Azoury said.
This could save you a lot of money. “The savings from having one less car are significant when you consider the mortgage payments, insurance, wear and tear, maintenance and even parking and/or tolls for commuting,” he said.
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This article originally appeared on GOBankingRates.com: 6 Things You Should Stop Buying in Retirement If You Want to Save Money
