Retirement is generally considered a time for putting your feet up and doing whatever you want. However, it’s still important to keep a close eye on your finances. When you have a fixed income, every dollar matters and some things you used to buy without a second thought might no longer make sense.
Here are a few things Americans should consider cutting back on to make the most of their retirement.
Expensive Cable Packages
Paying for hundreds of channels you never actually watch can be a huge waste of money. While those monthly outgoings might not seem like much, they can really add up over a year. The good news is that streaming services, like Netflix or Hulu, often offer much more affordable alternatives.
Bulk Groceries
You might think that buying in bulk is a good way to save money, but as you may have noticed, those huge bags of perishable food often end up going to waste before you can use them. That’s why retirement is a great time to focus on buying smaller portions of fresh food and staples.
Trendy Clothing
There’s nothing wrong with wanting to look and feel your best, but keeping up with all the latest fashions can really drain your budget. If it’s not doing a lot for you anymore, you may want to focus on high-quality, timeless clothing pieces instead.
These will last for years and mean you can stop constantly refreshing your wardrobe.
High-End Kitchen Gadgets
That ice cream maker or espresso machine may seem like fun, but a lot of these specialty kitchen gadgets just end up gathering dust. If you’re not using them much, they’re just taking up valuable space and money. For this reason, we recommend sticking to practical, multi-purpose appliances that actually make cooking easier.
Single-Use Cleaning Products
As you may have noticed, having specialty cleaners for every surface—like glass, wood, and stainless steel—can be super costly and take up a lot of space. Instead, you can get the job done by simplifying your cleaning routine with affordable, multi-purpose cleaners or homemade solutions like vinegar and baking soda.
Unused Gym Memberships
Research shows that staying active is especially important as you get older, so we’re certainly not telling you to stop exercising altogether. But if you’re no longer using your gym membership, it’s time to cancel. You can still get moving and stay healthy by walking, doing home workouts, or going to community fitness classes.
Expensive Beauty Products
Just because luxury skincare and beauty products promise miracles doesn’t mean they’ll actually deliver results that justify the price. There are plenty of affordable alternatives that work just as well at a fraction of the price. So, try to stick to basic yet effective products with science-backed ingredients like retinol, hyaluronic acid, and sunscreen.
Excessive Holiday Decorations
Sure, decorating for the holidays can be fun, but buying a bunch of new decorations every year can add up quickly. Retirement makes the perfect time to simplify by using the decorations you already have and focusing on sentimental pieces.
Premium Phone Plans
Do you really need unlimited data or all those extra features included in your premium phone plan? Switching to a basic or senior-specific plan can save you a surprising amount of money each month. A lot of providers offer discounts for older adults who have lower data usage needs.
Processed Snack Foods
It can be hard to resist the temptation of repackaged snacks like chips, cookies, and other sugary treats, but they can be both expensive and unhealthy. By cutting back on these calorie bombs, you can make your budget go further while also improving your health.
Bottled Water
There’s really no point spending money on bottled water when clean tap water is readily available at all times. It’s a whole lot better for both your wallet and the environment to invest in a good water filter or reusable water bottle.
Magazine Subscriptions
By the time you hit retirement, magazine subscriptions might have been a habit for years. However, the problem is that many end up unread and cluttering up your home. The good news is that most content is now available online for free or at a significantly lower cost.
Specialty Coffees
Those everyday trips to coffee shops for lattes and cappuccinos may seem like no big deal on their own, but they can really snack up on your budget over time.
Brewing coffee at home is far more affordable and fun to do, and you can still enjoy amazing coffee with the right beans and a simple coffee maker.
Unnecessary Extended Warranties
As you’ve probably noticed, retailers will often push extended warranties on things like appliances and electronics that aren’t really worth the cost. Many of these items already come with manufacturer warranties, and the extra coverage rarely pays off.
Excessive Home Décor
If home decor is a big passion of yours, you should absolutely keep finding new ways to decorate your home. But constantly buying new pricey throw pillows, vases, or little knick-knacks can clutter your space and eat up your budget before long. It’s a better idea to focus on pieces you really love and avoid making impulse purchases.
High-End Dining Out
Many of us love a touch of luxury now and then, and eating at fancy restaurants might feel like a great way to get that sense of indulgence. But if you do this too often, the cost can quickly add up.
You can still treat yourself once in a while, but you may want to consider cooking at home more often or trying out casual dining spots to save some extra cash.
Printed Books and Newspapers
If you’re a bit of a bookworm, buying physical books or newspapers can easily get expensive over time. You might be better off switching to a library card, e-books, or digital subscriptions that can save you money and reduce clutter. A lot of libraries also offer free access to audiobooks and magazines online.
Unnecessary Insurance Policies
Your insurance needs will naturally change as your life does, so it’s a good idea to review policies like life insurance, car coverage, or extended home warranties to see if you’re overpaying. Making simple changes to these policies can easily save you hundreds of dollars a year.
Landscaping Services
Things like gardening and landscaping can feel harder and harder as you get older. However, hiring professional landscapers for tasks like mowing or planting can be very expensive.
If you’re up to the task, take care of basic yard work yourself to save money. Maybe you could also enlist the help of your younger family members.