A 2015 survey revealed that Americans fear to get broke during retirement. 55% of the 1000 respondents confessed they fear not having enough money for their needs. It is a fear many newly retired folks experience hence the need to adapt to a frugal lifestyle. Here are some tips how:
1. Do Away with Unnecessary Insurance Policies
While car and homeowner’s insurance policies remain vital for many retirees, other types may not be worth renewing after retirement. A life insurance policy is not as important, especially if you are debt-free.
2. Track Your Expenses
It is essential to keep track of all your expenses after retiring. A budget helps avoid dipping into your retirement savings more than you need to. You also get to control your spending habits in terms of choices. The more effort you put into tracking your spending, the easier it gets to determine areas you need to cut back on spending.
3. Identify Ways to Reduce Property Taxes
Retirees can keep their property taxes from increasing to grow their monthly disposable income. Some states offer property tax rebates for older residents. You should do your research so you can take advantage of these opportunities.
4. Shop Smart
Some hotels, drugstores and other services offer senior discounts. The qualifying age may vary from one company to another, but it’s worth a try.
5. Vacation Less
It’s natural to treat yourself to a vacation. Sadly, these costs add up pretty fast cutting into one’s retirement savings. Retirees receive discounts and special offers for travel and local outings, giving them more cash to spend without dipping into their savings excessively.
The tips discussed should help you formulate strategies for frugal living after retirement. According to Jane Byrne of FirstCare Kildare, always be realistic about whether your finances will allow you to maintain the same standard of living. Whether you have saved a reasonable amount, living on a fixed income requires you to reduce spending.