Studies show many new retirees spend more in the early years of retirement than they did when they were working. With more free time they tend to splurge on travel, entertainment and eating out. If you don’t learn how to live on a retirement budget, you risk outliving your money.
Staying Healthy Saves You Money
You can mitigate the rising cost of healthcare by taking steps to stay healthy. Consistent exercise and healthy eating habits reduce the risk of heart disease, high blood pressure, diabetes and cancer. These chronic health issues can drive up your out-of-pocket healthcare costs with the need for increased doctor’s visits, medication, physical therapy and surgeries.
You don’t have to pay for pricey gym memberships. YouTube exercise videos or online workout apps can help keep you in shape at home. If you miss the socializing aspect of a workout class, invite a friend or two to join you.
“Although sticking to a budget isn’t much fun, it’s the best way to maintain your financial security over a 30-year retirement.”
Break The Restaurant Habit
According to the Bureau of Labor Statistics, in 2022, Americans spent an average of $3,459 on dining out. And when they retire, they tend to eat out more often than they did when they were working. With numbers this high, you can save hundreds of dollars every month if you break the restaurant habit. The same goes for Starbucks where the average price for coffee ranges from $3 to over $5 for special brews. Even on the low end, buying coffee at Starbucks every day can add $90 or more to your monthly spending.
Take Steps To Save On Utilities
Lower your electric bill by turning out the lights in rooms you’re not using and unplugging electronic devices not in use. Believe it or not, leaving everything plugged in 24 hours a day adds to your monthly electricity bill. Also turn off the heat and AC in unused rooms.
Switching from cable to a streaming service can save you as much as 50%. Also shop around for less expensive internet service and a better deal on cell phone service. If you have a landline you rarely use, consider turning the service off.
There’s An App For That
Consider using a budgeting app to help you track your finances, spending, recurring expenses – even your investments. Apps can be customized to send you alerts if account balances fall below a certain amount or you can set them up to remind you of upcoming due dates on bills.
Although sticking to a budget isn’t much fun, it’s the best way to maintain your financial security over a 30-year retirement.
Source: https://finance.yahoo.com/news/almost-1-3-retirees-spending-113044666.html
