Ways to match your expenses to your new income

Reducing Expenses After Retirement

by Pam Hutzler

1 of 7

Reducing Expenses After Retirement

You worked hard all your life and you've finally made it to retirement. Congratulations on your new adventure! Maybe you're faced with uncertainty if your savings will match your needs now that you're not receiving a weekly paycheck. When it comes to making retirement work, keeping living expenses under control is a smart financial move. There are a variety of ways for retirees to reduce expenses. Consider these ways to cut your monthly costs in retirement.

2 of 7

Cut Driving Expenses

If you and your spouse once commuted in separate directions each day, it's likely that you needed two cars. Now, in retirement, you may be able to get away with only one car. This will save you significantly in gas, maintenance, and insurance. Also, with the sudden upswing in free time, it may no longer be necessary for you to take your car for basic service by a professional. Now, it's possible for you to do your own oil changes, etc. Don't know how? There are plenty of resources online just waiting to "up" your DIY knowledge.

Related: How to Be a One Car Family

3 of 7

Minimize Food Expenses

It's likely your kids left the nest long ago, and at that time, you probably saw a dramatic cut in your food expenses when you stopped feeding ravenous teenagers. But, now that you're retired, you can make even deeper cuts. If restaurant and fast food lunches were a regular thing during your workweek, you'll easily see savings now as you begin to eat much cheaper lunches at home. Possibly you'll become very familiar with leftovers, which will save money by reducing food waste. Also, if you once made regular stops at one of those overly-priced coffee shops on your way to work, now you can save by brewing your own cup of joe at home. And now you'll also have time to look through sales circulars, clip coupons, take advantage BOGO deals, etc. Finally, with your free time, you may want to consider planting a garden in the summer. You'll eat healthier and save money by growing your own produce and not paying top dollar for your greens at the grocery store.

Related: 5 Summer Gardening Secrets

4 of 7

Get Rid of Excess

Want to earn some cash by doing nothing but giving your closets, garage, and maybe even your attic the cleaning they desperately need anyway? Of course, you do! When you've put together a pile of things that you want to get rid of, you should hold a yard sale, sell things on eBay, take scrap metal to a dealer... you get the idea. In other words, find someone that will turn your trash into a treasure.

Related: How Much Is Clutter Costing You?

5 of 7

Replace Costly Entertainment with More Affordable Choices

If you're like most, after a long day at the office, you probably relaxed in the evening with your premium movie package on your satellite TV. The good news is you can now dump your expensive entertainment habits. With more time, you can now search out free local entertainment options. Maybe instead of sitting on the couch in front of the television on a warm evening, you can check out an outdoor movie or concert being held at a local park. Or if you're lucky enough to live near a beach, your evening entertainment can be enjoying the sunset with a delicious picnic and even better company.

We all enjoy great food. However, eating out is very expensive and unhealthy. With more time in retirement, you can learn to cook some of your favorite foods. If you enjoy eating and cooking, this can also be a great way to entertain. Head to the library, grab a cook book, or enroll in a local cooking class.

While you're getting that cook book at your local library, talk to a librarian about the entertainment options available to you for free. Why not borrow books, music, and movies from the library? Maybe you'll be happy enough with the library options to further justify canceling your cable subscription.

Related: Recreation Budget on the Skinny

6 of 7

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.

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.

Video: Saving Money with Home Maintenance

7 of 7

Your New Retirement Job

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!

Debt Book

Related Articles:
6 Things Boomers Should Consider Before Renting
Savings after Retirement
Retirees Fear Running Out of Money

Take the Next Step:

Share your thoughts about this article with the editor.

Stay Connected with TDS

Little Luxuries

to the Dollar Stretcher newsletter and get a copy
of our ebook
Little Luxuries:
130 Ways to Live Better...For Less
for FREE!

Your Email:

View the TDS Privacy Policy.

Debt Book