Tips for Budgeting and Enjoying Retirement

It’s important to balance saving your dollars while knowing you can–and should!–spend your hard-earned money on what brings you joy. Whether you’re looking to save more here and there for your future or make your money last in retirement, here are some tips to help you budget and enjoy your money.

Cut Down on Costs

Take a look at what you’re spending money on a regular daily, weekly, monthly, and yearly basis and assess where you can cut down on costs:

• Appliances and Electricity: Save on heating with warm blankets, switch to line-drying your clothes instead of machine drying, and unplug appliances and electronics not in current use.
• Bills: Reevaluate your cable, cell phone provider, and utility company, as they often change their services. You can switch by verifying the type of coverage you have, establishing your priorities, and comparing with others. Consider going paperless and automating your bill payments to avoid the risk of late fees, too.
• Memberships and Subscriptions: Whether it’s the gym, magazines, or special deliveries, take a look at those memberships and subscriptions you’re not using and see how much you could save by canceling them.

Plan Your Food Costs

You can’t avoid spending money on food, but you can find ways to get more bang for your buck and eat smarter:

• Minimize how much you go out to eat and choose to meal prep for the week instead of ordering food. Even choosing to make special treats like coffee at home instead of buying regularly can add up.
• Choose water over pricey beverages, so they’ll be extra special when you do splurge, like coffee and soda. It’s a great way to save money and promote healthy food habits!
• Don’t shop when you’re hungry. You might over-purchase unnecessary items because everything looks good when your appetite is piqued.
• Go generic instead of getting the brand names. Branded products are almost always more expensive than the grocery brand.
• Try ordering your groceries online for delivery or pick-up. This way, you’ll see your total before checkout and can stick to a budget. It also diminishes the likelihood of impulse purchases.

Downsize and Move

Downsizing your home or relocating to a less expensive area is another money-saving move. Even if you’ve paid off your mortgage, owning a large house in retirement may not make sense anymore. Consider selling your house and downsizing to a smaller or more supportive living arrangement, such as an apartment, condo, or senior living community. This can lower your yearly home expenses and make your life less stressful due to less cleaning and maintenance. Just remember to think about the timing of when to sell your home and downsize for more savings and money in your pocket!

Reduce, Reuse, and Recycle

Our daily habits can affect our budget, so look for ways to reduce, reuse, and recycle in your lifestyle:

• Borrow, Don’t Buy: Whether you’re doing a fix-up or just a weekend project, borrow or rent an appliance or tool from someone instead of buying, especially if it’s something you won’t use again.
• Learn Reasonable Home Maintenance Skills: There are many home tutorials on YouTube to help you plan your projects and learn simple skills.
• Minimize or Eliminate Car Use: Save money on car loans, repairs, and insurance, and consider living somewhere with affordable public transit to help the environment and make your life easier.

Track Your Spending

It’s easy to overspend if you aren’t keeping track of your weekly or monthly purchases, so take the following into account when managing your spending.

• Financial Records: Grab your checkbook, credit card statements, and other expense documents to calculate your yearly expenses.
• Monthly Expenses: List your monthly fixed expenses like the mortgage, car payments, and anything else billed every month.
• Monthly Variable Payments: These are payments that don’t get billed at regular prices, such as grocery bills, pet fees, gas, and entertainment.
• Non-Recurring Expenses: These are expenditures like vacation funds or buying a new car. List special expenses that require advanced planning.
• Estimate Your Retirement Income: Add up your monthly income from all sources. Most retirees will start with Social Security, pensions, and 401K.
• Compare Total Expenses to Your Income: This will tell you how much monthly wiggle room you will have.
• Regularly Check Your Budget: Consider downloading a budgeting app to mitigate unwanted expenses and check that you’re doing well.

Get Creative and Have Fun!

You don’t necessarily have to go out or spend a lot of money to have fun. Start getting creative with your entertainment choices and seek new activities with low-cost or free pursuits:

• Senior living and community activities
• Volunteer opportunities
• Host a party, movie, or game night at home
• Visit the museum
• Senior discounts for dining and entertainment experiences

Ready to turn your finances around and plan for the future? Check out our free ebook, 6 Money Planning Tips For Your Senior Living!

At Life Enriching Communities (LEC), we’re committed to ensuring patrons feel well-equipped to plan their future and age how they wish. Explore more resources on senior living or contact us today to learn more about our legacy of services and programs that bring meaning and purpose to every stage of life.