Creative Retirement Budgeting Tips

Creative Retirement Budgeting Tips

8 Creative Ways to Stretch Your Retirement Savings

You’ve spent decades working hard, saving for retirement, and dreaming of the day when you could finally travel, volunteer, and pursue your hobbies without the constraints of a 9-to-5 job. But now that retirement is within sight, you can’t help but worry about how your savings will hold up and if you’ll be able to maintain the lifestyle you desire. If you’re feeling this way, you’re not alone. A recent survey revealed that 33% of Americans share this concern about running out of money in retirement.

However, Genevieve Waterman, DSW, director of economic and financial security for the National Council on Aging (NCOA), assures retirees that transitioning from a regular paycheck to a fixed income doesn’t have to mean giving up the things you love. In fact, there are numerous creative ways to stretch your retirement savings while still enjoying your favorite activities. Let’s explore eight of these strategies:

Start with a budget:

Before diving into the various ways to save money, it’s essential to establish a budget. When you retire, both your income and expenses will change. By creating a spreadsheet, downloading a budgeting app, or using tools like the NCOA’s Budget Checkup, you can assess how far your savings will go and determine where adjustments may be necessary.

Waterman suggests reviewing your budget each month and reassessing your income versus expenses to stay on track. This ongoing evaluation will help you make any necessary tweaks and ensure that you’re staying within your means.

Examine expenses:

Retirement brings about a significant change in your daily routine. With no need to commute to work, you may find that you no longer require a second car. Selling this extra vehicle could lead to substantial savings since the annual cost of car ownership, including gas, maintenance, insurance, licensing, and registration, can exceed $10,000.

Additionally, downsizing to a smaller home or relocating to a less expensive area can significantly reduce your living expenses. The University of Boston’s Elder Index is an excellent online resource that allows you to compare the cost of living in different locations, helping you make informed decisions about where you could potentially relocate.

Put property taxes on hold:

Even if your mortgage is fully paid off, property taxes are an ongoing expense that can accumulate over time, especially as the value of your house increases. However, many states have programs that allow you to freeze property taxes or your home’s assessed tax value. To take advantage of these programs, reach out to your local tax office and inquire about the options available in your area.

Sign up to save:

Many businesses offer free loyalty programs that come with a variety of benefits, such as coupons and cashback rewards. By signing up for loyalty programs at gas stations, supermarkets, drugstores, and big-box retailers, you can enjoy extra savings. In fact, approximately 80% of Americans are members of at least one loyalty program.

Waterman also recommends clipping coupons and shopping on “seniors day” at grocery stores to maximize your savings. By combining discounts and taking advantage of promotional offers, you can see substantial savings on your shopping trips.

Travel for less:

One of the most rewarding aspects of retirement is having the time and freedom to travel. Whether it’s an African safari, a trip to wine country, or a journey to all the Major League Baseball parks across the United States, the costs of airfare, hotels, and meals can add up quickly. However, there are several ways to travel on a budget.

One strategy is to travel during the off-peak season when prices tend to be lower. Additionally, organizations like AARP and AAA offer travel discounts to their members. Furthermore, using a travel rewards credit card can earn you free airline tickets and other cost-saving perks such as sign-up bonuses, in-flight credits, and waived baggage fees. Beverly Harzog, a credit card expert and author, suggests selecting an airline-branded credit card if you have a preferred airline or a general rewards card if you prefer flexibility across multiple airlines or hotels.

Start a side hustle:

If you’re looking to make your retirement budget go further, consider earning some extra income through a side hustle. Platforms like Etsy allow you to sell handmade items, while consignment stores and online marketplaces such as thredUP, eBay, or Poshmark provide opportunities to sell brand-name clothing, shoes, and accessories. Additionally, you might consider renting out an unused room in your home through platforms like Airbnb or Vrbo, or even renting out your swimming pool by the hour through sites like Swimply.

Before starting a side hustle, it’s important to check with your insurance company to ensure you have the proper coverage for any potential liabilities that may arise.

Ask for discounts:

Never hesitate to ask for a senior discount. Countless establishments, including restaurants, museums, national parks, and hotels, offer discounts and freebies to older individuals. While saving 5% to 10% on a cup of coffee or a restaurant meal might not seem like much, over time these discounts can add up and help you maintain your previous lifestyle while living on a fixed income. Always double-check with management or staff to inquire about available discounts and take advantage of the savings they offer.

Find freebies:

You don’t always have to spend money to enjoy life. Take advantage of local libraries that offer not only physical books but also e-books for borrowing. Keep an eye on event listings in your area as there are often free concerts, museum admissions, and festivals to attend. Additionally, esteemed institutions such as Harvard University, the Georgia Institute of Technology, and University College London provide free classes covering a wide range of topics, allowing you to continue learning and expanding your horizons.

Remember, the more strategies you employ to save money, the faster your savings will accumulate. By applying these creative methods, you’ll find it easier to stretch your retirement budget and enjoy a fulfilling and worry-free retirement.