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10 tips to control expenses in retirement

U.S. News & World Report

August 17, 2018, 9:55 AM

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Piggy bank on calculator concept for saving, accounting, banking and business account(Getty Images/iStockphoto/BrianAJackson)

Some people spend years preparing for retirement, while others have retirement thrust upon them sooner than expected. Either way, balancing a retirement budget can be a challenge, as prices rise faster than income, and many retirees face extra housing or medical expenses. Here are some suggestions to bring your expenses into line with a more modest retirement income.

Hands taking us dollars out from wallet on the street
1. Cut where it doesn’t hurt. The point is not to economize, but prioritize your costs. Spend money only on things that are important to you. Make sure you’re not paying for things your kids wanted, but you no longer use, such as a family membership to a sports club or an expensive cellphone service. And maybe you no longer need to shop at a big box store. You don’t need a four gallon pack of orange juice, no matter how great a “bargain” it may seem. (Getty Images/iStockphoto/lzf)
Getty Images/iStockphoto/lzf
Easy Written on Blue Key of Metallic Keyboard. High Quality Render of a Modern Keyboard Button. The Button is Blue in Color and there is Caption Easy on It. 3D Render.
2. Sell what you aren’t using. Do you have a basement full of old books, toys and sports equipment? Instead of letting it all sit there, you could sell the items on eBay or Craigslist or take them to a church rummage sale. If you donate items to charity, you won’t get cash, but you can probably take a tax deduction. Don’t just focus on the small stuff. You might still have a boat you bought when the kids were young or a vacation condo you never use anymore. (Getty Images/iStockphoto/Tashatuvango)
Getty Images/iStockphoto/Tashatuvango
Colorful stack of credit cards and shopping gift cards. Macro with extremely shallow dof.
3. Control your credit. As you approach retirement you should be paying down debt, not taking out new loans. Credit card debt tends to have a high interest rate, so if you’re running a balance, pay it off as soon as you can. Don’t worry if you’re carrying a mortgage into retirement. You have plenty of company. But there’s no greater feeling of security than living in a home that’s free and clear of the bank. (Getty Images/iStockphoto/bernie_photo)
Getty Images/iStockphoto/bernie_photo
Travel planning concept on map
4. Use your head when you travel. A little research can go a long way in saving money on travel costs. Scour the internet for hotel bargains, or book on HomeAway or Airbnb. Fly mid-week or travel during the shoulder season when rates are lower. Now is actually a good time to travel abroad, because the dollar is strong. But you save more money staying closer to home. Perhaps you can go visit the kids and grandkids and stay with them for free. (Getty Images/iStockphoto/seb_ra)
Getty Images/iStockphoto/seb_ra
Empty comfortable red seats with numbers in cinema
5. Find free entertainment. Your community likely offers free summer concerts and fall festivals. Check out the public library for free seminars, book clubs, movies and lectures. Your church, veterans association or social club often provides rewarding activities at little or no cost. Many communities offer adult education classes, ranging from foreign languages to ballroom dancing. And don’t hesitate to get a senior pass for the movie theater or state park. (Getty Images/iStockphoto/maksicfoto)
Getty Images/iStockphoto/maksicfoto
A young beautiful couple browsing their tablet from the comfort of their kitchen.
6. Put the kibosh on your kids. You’re used to paying the bills for your young ones, but you don’t have to when they’re adults. While you’re free to help them out if you can afford it, there’s no law that says you have to subsidize their rent or come up with a down payment for a car or house. You spent thousands of dollars raising your children. Now it’s time to let them fly on their own — including the airfare for their honeymoon. (Getty Images/iStockphoto/bernardbodo)
Getty Images/iStockphoto/bernardbodo
Hand of person holding light bulb for idea or success or solar energy
7. Go green. Take care to turn off the lights and dial down the heat when you can. Sometimes you can open a window instead of turning on the air conditioning. According to government figures, it costs over 50 cents a mile to drive a car. So maybe you can batch trips or trade in a thirsty SUV for a gas sipping sedan. (Getty Images/iStockphoto/kirisa99)
Getty Images/iStockphoto/kirisa99
Piggy bank on calculator concept for saving, accounting, banking and business account
8. Save on saving. You no longer get a paycheck, so you don’t have to contribute to Social Security. You’re now on the receiving end of the program. And if you’re already retired, you don’t have to set aside 5 or 10 percent of your income to save for retirement. (Getty Images/iStockphoto/BrianAJackson)
Getty Images/iStockphoto/BrianAJackson
Young girl using smart phone,Social media concept.
9. Do not covet your neighbor’s social media posts. We all see smiling people living ideal lives on TV and social media. But remember, these images are carefully selected and edited. Other people are not having a better time than you. Focus on living the kind of retirement that’s right for you. (Getty Images/iStockphoto/SonerCdem)
Getty Images/iStockphoto/SonerCdem
Group of Senior Retirement Friends Happiness Concept
10. Rely on friends and family. Don’t be afraid to ask for a favor, and then offer to reciprocate. You can save money driving each other to the store or the doctor’s office, instead of calling Lyft. Exchange yardwork for housework or financial expertise for culinary skills. Help each other out. When you rely on others, you benefit from the companionship as well. (Getty Images/iStockphoto/Rawpixel Ltd)
Getty Images/iStockphoto/Rawpixel Ltd
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Hands taking us dollars out from wallet on the street
Easy Written on Blue Key of Metallic Keyboard. High Quality Render of a Modern Keyboard Button. The Button is Blue in Color and there is Caption Easy on It. 3D Render.
Colorful stack of credit cards and shopping gift cards. Macro with extremely shallow dof.
Travel planning concept on map
Empty comfortable red seats with numbers in cinema
A young beautiful couple browsing their tablet from the comfort of their kitchen.
Hand of person holding light bulb for idea or success or solar energy
Piggy bank on calculator concept for saving, accounting, banking and business account
Young girl using smart phone,Social media concept.
Group of Senior Retirement Friends Happiness Concept

 

Tom Sightings is the author of “You Only Retire Once” and blogs at Sightings at 60.

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