Retirement has its upsides, such as no longer working full-time, having more time to spend with friends and family, and more time to devote to hobbies and interests. It’s understandable why retirement is a major milestone for many people.
For all of the benefits that come with retirement, there are financial issues that retirees have to be mindful of. Retirement usually means that your monthly income is less than it was while you were working full-time.
This reduced income means budgeting more carefully than ever. Many retirees have discovered ways to stretch their dollars. If you’re a retiree or about to enter into retirement, you should take note of these money-saving hacks.
1. Bargain Hunting
There’s no shame in hunting for the best prices and deep discounts. Taking the time to search for bargains can quickly result in a surprising amount of savings. If you do any in-person shopping, clip coupons and visit stores offering senior discounts.
For online shopping, use apps that automatically search for discounts and websites that offer deals on products you use. Don’t buy what you need from the first site you go on. Comparison shop to see who offers the lowest price for the most value.
2. Downsize When Possible
Take an inventory of the things you own and decide what you need and don’t need. Do you still require a full-size vehicle or own two of them when there’s only one or two of you traveling? Can you downsize your home for a smaller one?
If you’re willing to do any of these things, you could put yourself in a more advantageous financial position. The money you save from downsizing can be used to pay down or pay off bills, or put into a savings account.
3. Relocate
You can satisfy your urge for adventure and save quite a bit of money by relocating to a foreign country with a substantially lower cost of living. Countries like Thailand, Spain, and Malta have costs of living that meet many retirement budgets.
Prefer staying stateside? There’s an abundance of places in the U.S. South offering warm climates throughout most if not all of the year and low costs of living. You won’t even need a passport or other travel documents.
4. Find a Roommate
That extra bedroom in your home can be rented out long-term to someone. It’s a great way to bring in extra money each month, receive additional assistance around the house, and have a live-in companion to keep you company.
An alternative to having a long-term tenant is arranging a short-term rental through a platform like Vrbo or Airbnb. You’ll have the chance to meet different people and rent your extra space as much or as little as you want.
5. Work Part-Time
Working a part-time job after you’ve retired may seem like a contradiction, but it’s an excellent way to add to your monthly income and increase your savings. You might be able to find a job in your previous career field. But if not, there are other options.
You can find part-time jobs in many industries, or you can become a part-time consultant, providing advice to organizations in your field of expertise. You may also consider seeking employment with a temporary agency.
6. Use Public Transit
Using public transit for short trips has several benefits. It saves you from the pain at the pump by reducing the number of times you have to fill up your gas tanks and saves wear and tear on your car. It’s also good for the environment to have fewer cars on the road.
Walking to the nearest bus stop or subway station helps you get some exercise for the day and to see your community more closely than you would while driving a car. You’ll also avoid the headaches of being stuck in commuter traffic.
7. Use Public Programs
Many communities provide free or low-cost benefits to mature adults. You may be eligible for cash, medical, utility, and food assistance. Some of these programs are based on need and are free or available on a sliding scale.
Your state’s Office of Aging has a list of community and government resources available to you. The National Council on Aging (NCOA) also maintains a list of professional resources that may be of assistance to you.
8. Dine at Home
For all of the conveniences that come with dining out, it can be an expensive habit, especially if you’re buying meals away from home more than once a week. Even frequent fast-food meals can take a chunk out of your monthly budget.
Cooking doesn’t have to be a daily chore to endure. You can easily make your meals in larger batches and freeze them for later use as lunches and dinners. You can still have the pleasure of dining out, but don’t make it a daily or regular occurrence.
9. Budget Your Money
Keeping true to a monthly budget is probably one of the biggest personal finance challenges faced by working people and retirees alike. When you’re no longer in the workforce and your income isn’t as high, it’s more important than ever to stay within your budget.
Gather all of your information related to your incoming monies and outgoing expenses, even the ones that seem minor. Examine your expenses carefully to see where your money is going, and determine what can be reduced or eliminated.
10. Sell Unwanted Items
Gently used unwanted items that are taking up space in your house don't necessarily have to be thrown away, recycled, or donated. You’d be surprised at the strength of the market for these items. You can sell them online for a tidy profit.
You can sell those goods on platforms like eBay. If you have designer goods that you no longer use, there are sites like The RealReal and Poshmark that will sell your items for you in exchange for a small fee. You can also sell them yourself or take them to a consignment shop.
11. Pay Off Debt
Paying off debts like mortgages, car loans, and credit cards as quickly as possible will save you from paying interest charges. It’ll also end the monthly payments of those debts, which is money you can put into savings.
You don’t need thousands of dollars to pay off your debts, but if you’re able to make extra payments on your outstanding bills, you’ll pay them off much faster. That’s additional money that could be put to better use.
12. Prepare for Tax Time
Just because you’re no longer working doesn’t mean you’re exempt from paying taxes. When you file your annual federal and state tax returns, the last thing you want to deal with is the unpleasantness of a surprise tax bill.
The best way to avoid tax problems each year is to rely on the services of an accountant or an experienced financial planner. They can advise you of potential tax liabilities, giving you time to save money to pay your taxes.
13. Go Thrifting
Shopping at thrift stores used to have a stigma attached to it, but not anymore. Today, even the most affluent go thrifting to obtain unique finds in clothing and household goods. You can go thrifting and find any number of deeply discounted items.
From vintage and modern designer clothes and handbags to gently used home furnishings and antiques, thrift stores are a terrific hub for one-of-a-kind objects. You can save money by purchasing gently used over new.
14. Low Cost Entertainment
Being retired and on a budget doesn’t mean you have to give up entertainment. There are plenty of ways to have fun without busting your budget. In the warmer months, your community might host free outdoor theater and musical performances.
Instead of watching first-run movies at night when tickets are at their most expensive, opt for matinee tickets. With free streaming services like Pluto TV and Tubi, you can watch modern and classic television shows and movies.
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