Reducing Expenses After Retirement

Now that you’re retired, it’s time for a new kind of work. Instead of earning a paycheck, work on saving money and cutting expenses. These tips can get you started.

by Pam Hutzler

Reducing Expenses After Retirement photo

You worked hard for decades and now you’re finally retired. Congratulations! But if you’re feeling a little uneasy about making your savings last without a steady paycheck, you’re not alone.

The good news? You have more control than you might think. By trimming everyday expenses, you can stretch your money further and enjoy retirement with less financial stress.

Here are some pain-free, doable ways to reduce expenses after retirement:

Cut Driving Costs

If your two-car household was built around work commutes, you may no longer need both vehicles. Downsizing to one car can save you hundreds—or even thousands—each year in insurance, gas, maintenance and registration. (See Could You Give Up Your Car?)

You may also have more time now to tackle basic car upkeep yourself. Oil changes, air filters, wiper blades—plenty of these small tasks are easy to learn, and YouTube is full of step-by-step guides.

Shrink Your Food Budget

Chances are your grocery bill dropped when the kids moved out. In retirement, you can lower it even more.

Eat at home more often. Lunches out during the workweek add up. Now you can enjoy home-cooked meals, including tasty leftovers that can help you avoid food waste.
Plan around deals. You finally have time to check store circulars, use coupons and catch BOGO offers.
Ditch the pricey coffee house habit. Becoming your own barista, rather than stopping by the coffee shop like you did on your way to work, can save a surprising amount each month.
Try gardening. Even a small summer garden can help cut grocery costs and keep you eating fresh.

Declutter and Cash In

Your garage, attic and closets may be filled with items you no longer use. Retirement is the perfect time to declutter and make some extra money.

Sell gently used items online or host a yard sale. Old tools or metal odds and ends? Look into scrap metal recycling. You’ll end up with less clutter, more breathing room and a little money in your pocket.

Rethink Entertainment

Now that you’re no longer decompressing from a long workday in front of premium cable, it’s a great time to find cheaper ways to have fun.

Find free events. Outdoor movies, concerts and community events can be great ways to get out without spending much.
Cook with friends. Instead of dining out, consider hosting a potluck or trying new recipes at home. It’s social and budget-friendly.

Maintaining the Home Front

Instead of paying someone else to perform home maintenance, now you can assume the responsibility. Doing your own yard work will not only save you money but will also keep you more active. In fact, if you combine your yard work with maintaining a garden, maybe you can consider dropping your expensive health club membership to make fitness your new DIY project. (See Low Maintenance Landscaping Ideas for Seniors.)

If you’re concerned that you may not be able to perform the necessary maintenance projects, remember that there are many online resources. Just google your project and wait for the many help options to pop up before you.

You once punched a clock to earn a living and receive a paycheck. It’s time to take on a new job. Instead of working to earn money, it’s time to work on saving money, reducing expenses, and restructuring your lifestyle. Happy retirement!

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Reviewed July 2024