Retirement can make you look at monthly expenses differently. A bill that barely got your attention while you were working can suddenly feel much bigger when you’re living on Social Security, retirement savings or another fixed source of income.
But cutting expenses doesn’t necessarily mean giving up everything you enjoy. Some of the biggest savings can come from taking another look at housing, transportation, insurance, and all those recurring bills that may not make as much sense for your life anymore.
Here are 12 ways they’re doing it.
Downsizing or Moving Somewhere More Affordable
Retirement can be a good time to ask whether you still need the larger home or even the more expensive area you chose during your working years.
Downsizing or moving somewhere with lower housing costs can potentially cut hundreds or even thousands from monthly expenses once you factor in the mortgage or rent, property taxes, insurance, utilities, and ongoing maintenance.
Related: 15 Things Retirees Wish They’d Downsized Sooner
Going Down to One Car
If neither person is commuting to work anymore, it may be worth asking whether you still need two cars. Selling the vehicle that rarely leaves the driveway can eliminate a car payment, plus insurance, registration, maintenance, and repair costs that can easily add up over the year.
Paying Off High-Interest Credit Cards
It’s frustrating to send hundreds of dollars toward credit cards every month only to watch a chunk of that payment disappear into interest.
Paying down high-interest balances can eventually eliminate those monthly payments altogether and leave more retirement income available for everything else.
Sharing the Cost of Housing
Living alone means one person is responsible for the mortgage or rent, utilities, internet, and plenty of other household expenses. A roommate, relative or multigenerational living arrangement can divide some of those costs while also putting otherwise unused space in the home to work.
Shopping Around for Insurance
It’s easy to renew the same home and auto insurance policies year after year without checking what else is available. Comparing rates, reviewing coverage and asking about discounts could shave money from multiple premiums without requiring you to change much about your everyday life.
Canceling Subscriptions You Forgot About
Streaming services, apps, memberships and other small monthly charges have a funny way of multiplying when no one is paying attention. Review a few months of statements and cancel anything you barely use to uncover a surprising amount of money leaving your account every month.
Eating at Home
Restaurant meals and unnecessary grocery runs can quietly take a pretty big bite out of the monthly budget, especially when there’s already plenty of food sitting in the refrigerator, freezer, and pantry.
Cooking at home more often and checking what you already have before heading to the grocery store can lower food spending without giving up the occasional meal out you actually enjoy.
Actually Using Senior Discounts
Senior discounts aren’t going to transform your finances overnight, but regularly paying 5%, 10% or even more less on things you’re already buying can add up. Restaurants, transportation, entertainment, hotels and other businesses may offer discounts, so this is one of those times when it doesn’t hurt to simply ask.
Reviewing Medicare Coverage Every Year
Health care can take a significant bite out of a retirement budget, yet it’s easy to keep renewing the same coverage without looking at what has changed.
Reviewing premiums, prescriptions, provider networks and available plan options during the appropriate enrollment period could uncover coverage that better fits both your current needs and budget.
Finding More Free Things to Do
More free time can surprisingly become expensive when you fill it with restaurants, shopping, and paid entertainment. Libraries, parks, community events, senior centers, free concerts and museum days can fill plenty of afternoons without creating another monthly spending habit.
Related: 20 Things Retirees Can Sometimes Get Completely Free Just by Asking or Signing Up
Paying Annually When It Actually Saves Money
Monthly payments may be convenient, but some companies charge installment fees or offer a better overall price when you pay for the year upfront. If you have the cash, compare annual and monthly totals for things like insurance and other services, because paying once could save money over the year.
Bringing in a Little Extra Money
Cutting expenses can only go so far, and sometimes adding a few hundred dollars to the monthly budget is easier than finding another few hundred dollars to eliminate.
Consulting, tutoring, pet sitting, freelancing, seasonal work or a few shifts each week can provide extra spending money without necessarily turning retirement back into a full-time job.
