Cutting Costs – 4 Financial Tips for Seniors
Many seniors look for ways to cut their living costs, without having to sacrifice their way of life too much. If you count yourself among them, then you know how much of a struggle it can be to maintain your budget.
But there are some simple, yet effective ways to bring your costs down. The following list gives you four good ways to start whittling away at your expenses.
Look for Discounts
As a senior, you should be taking advantage of discounts available to you. Many retail vendors and restaurants will post that they offer a senior discount.
Other places require you to have a membership. Either way, if being of a certain age allows you to take off 5%, 10%, 20%, or more on your purchases, then do it. Take advantage of the benefits age can qualify you for.
Downsize
With your children out of the nest, you won’t need all the space you once did. You may want to consider downsizing from a single family home to a condo.
Getting a condo, as opposed to living in a house, can save you some significant money and labor.
However, you may also not have the means to make the repairs that you used to or even the desire.
When you buy a condo, you typically pay less than you would for a home. You also aren’t stuck doing the repairs.
You can often find a place with an HOA to do that. And if you should need a repair on something spendy, the cost of that is shared between you and the other members of the HOA.
Live Where It’s Cheaper
During your retirement years, you’ll be living on a limited budget. It’s amazing how much farther that budget will go if you live in a city where the cost of living is cheaper. Here’s an example.
Buying a home in Boise, Idaho will cost you about $255K. Buying a comparable home in New York, New York will cost you $662K.
Living in New York compared to a place like Boise costs you over 100% more. While this might be an extreme example, it does show how much more you get out of your retirement savings if you live someplace cheap.
Get Rid of a Car
If you are in good health, then try getting rid of your car to save money. You have quite a few viable options. You can take public transportation, get an Uber or Lyft membership, or sign up for a car share.
These alternative modes of transportation cost you way less money than owning a car, and you only pay for the transportation you need when you need it.
Gone are the days of car payments, gas and oil costs, and upkeep and repair headaches. A bus pass can run you as little as $30 a month in some cities and car share can be as little as $8 an hour, gas and insurance included.
Being mindful of how you spend your money during your golden years can help you stretch the money that you do have.
Saving money can be as simple as just taking the bus. However, when you take more aggressive steps, like buying a condo or even moving to a different, more inexpensive place, your money and your senior discounts go even farther.
Category: Financial Planning
