When you retire, you may have a fixed income. Adjusting spending habits can be difficult, especially if many of them were established decades ago. These adjustments, however, can make a huge difference. Cutting back on unnecessary expenses can save you hundreds of dollars each month, which means 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. Place each item into a needs or wants category. Then carefully comb through your desires to determine what you can live without or at least what you can reduce. You might be surprised how a few changes to your spending can mean a lot 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 are guilty of having at least one subscription service. Unfortunately, these small monthly fees can add up each month, especially when you have multiple subscriptions.
“One of the best things retirees can do to save money is to reassess the recurring costs that affect their fixed income budget, month by month. For example, entertainment subscription services can really add up,” said Erika Kullberg, founder of Erika.com.
The attorney and personal finance expert noted, “Bango research found that the average American has 4.5 subscriptions and pays an average of $924 per year for these services. This means retirees can save an average of $77 per month.”
Fortunately, there’s a more cost-effective way to get your entertainment fix. “Most public libraries have DVDs on loan,” Kullberg said. “Retirees may find it fun to get out of the house to rent movies instead of paying for multiple entertainment subscriptions.”
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Professional services
Another easy cut that can make a big difference in your budget is professional services. Depending on where you live, a cleaning service can cost around $70 an hour, and landscapers can easily fetch you $100 a month.
Kullberg, who has more than 21 million followers and is the host of a popular podcast, said retirees can also “reconsider the services they pay for to save them time while they work.”
An added benefit of doing things yourself instead of paying for them is that it keeps you active. “Although they may have been too busy to clean their house or keep up with yard work while working, they may find these chores are a great way to stay active,” Kullberg said . “Reducing professional services can save a lot of money.”
Food outside
While dining out may be your favorite pastime, it can break the bank. On average, Americans spend around $300 each month on each Ramsey Solutions. Limiting the number of times you eat out each week can save you significant amounts of money in the long run.
“Dining out is also a great way to save money and forces retirees to master some fun new cooking skills,” Kullberg said. “Spending more time cooking at home is healthier and could save pensioners hundreds every month.”
Overpriced coffee
One of the biggest challenges for a retiree on a fixed or low income can be to stop paying for convenience. Little things like buying a cup of coffee outside the house each day can start to add up.
Your daily coffee habit can cost you around $40 or more each month. Instead of paying $5 for a cup of joe, consider making one for a fraction of the cost at home.
Peak season travel
One advantage of retirement is that you might have the freedom and flexibility to travel when you want. With this flexibility, you should consider traveling when prices are less expensive. If vacationing is part of your retirement plan, then you may want to consider cutting back on peak season travel.
“If you decide to travel in retirement, you can travel in peak seasons to enjoy lower airfares and hotel rates. The same seats, but at a lower cost,” said Steve Azoury, ChFC, owner of Azoury Financial.
Gas
If you’re retired, you might be able to get rid of your money-guzzling vehicle and opt for public transportation, or simply switch from a two-car household to one.
“With retirement, you can ‘test drive’ what it’s like with one vehicle for a husband and wife. With the development of ride-sharing services, you could be covered for the occasional inconvenience of needing a second ride,” Azoury said.
Doing so can save you quite a bit of money. “The savings associated with one less car are significant, factoring in car payment, insurance, wear and tear, maintenance and even parking and/or tolls,” he said.
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This article originally appeared on GOBankingRates.com: 6 Things to Stop Buying in Retirement If You Want to Save Money
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