Once you enter retirement, you will most likely be living on a fixed income. If you’re like most retirees, you may worry that your income won’t be enough to cover your living expenses. Increasing your income is one way to feel more protected, but of course that is not an option for everyone. So if you’re really worried about having enough money in retirement, you should work to reduce your expenses.
Reduce health care costs. One of the largest expenses faced by retirees is health care. In particular, many seniors are struggling to cover the cost of their prescription medications. While speaking to your doctor about switching to a less expensive drug is one option, you should also explore Medicare supplemental plans that help with the cost of prescriptions. Remember to eat healthfully and exercise regularly, too, because taking care of yourself can prevent many costly health problems.
Keep a record. To better understand your budget, try writing down every single purchase you make for about two months. After reviewing your records, you may be able to spot ways that you could reduce your spending. Sometimes we just need to see it in black and white before we realize how much we’re throwing away on frivolous or unnecessary purchases.
Reduce debt. If debt is one of your largest expenses, try to pay down large balances before you retire. A debt consolidation loan is another good option, or you may choose to refinance your mortgage in order to reduce your monthly payment.
Save on utilities. Hire a handyman to winterize your home, and cut your heating bills. Switching to energy efficient appliances, using efficient light bulbs, and installing water saving devices on showers and toilets can also help you save money on utilities.
Access free community resources. Remember your local library offers free lending of books and movies, and you can probably use their internet when you visit. Other community resources may include help with electric bills, food banks, free classes, and more amenities aimed to assist senior citizens.
Put the internet to work for you. If you’re online reading this blog right now, then you have access to a wealth of information at your fingertips. Check out the numerous frugal living blogs online, for more tips on how to reduce your budget and save money.
14481 – 2015/5/13