7 Frugal Living Tips Retirees Should Focus On in 2024
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While it’s tempting to think of your retirement as a time to let go and live a little — after all, you’ve spent how many years in the workforce? — a little moderation can go a long way in helping you live the comfortable life you deserve. The good news is that you don’t necessarily have to overhaul your entire lifestyle in the service of thriftiness. In fact, following some simple tips can help ensure that your nest egg doesn’t hatch too early.
GOBankingRates did some research, and some basic math, to come up with a list of easy and frugal tips that can help your golden years shine brighter.
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Save Your Social Security Increase
For 2024, retirees will receive a cost-of-living adjustment of 3.2% in their Social Security checks. While this is far below the whopping 8.7% increase seen in 2023, it’s just about in line with current inflation rates, which some economists expect to continue to fall throughout 2024.
But inflation is a lumpy measurement. Depending on where you live and the type of lifestyle you lead, it’s entirely possible that costs for you are up only modestly, or even down in some areas.
If that’s the case — or even if it’s not — if you can save your Social Security increase instead of spending it, you can make your money last much longer. If you’ve managed to keep your overall living costs more or less the same, take that 3.2% Social Security increase and put it in a savings account instead of spending it. For the average Social Security check, that would amount to about $59 per month in extra savings, or $708 per year.
That might not sound like too much, but if you have an emergency in 2024 or 2025, that extra few hundred dollars in your savings could be enough to keep you out of debt.
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Trim Your Subscriptions
If you took a close look at your monthly bills, you might be surprised to see how many recurring charges you rack up every month. Streaming subscriptions like Netflix, Hulu and Amazon are a big culprit and can run over $100 per month when added all together. But you may also have numerous small charges that you don’t even think about that can add up to big money over the course of a year.
For example, if you give $5 per month to PBS, $2 per month to 10 different online newsletters and $20 per month to your favorite charity, that amounts to another $540 per year. Combined with your streaming costs, you may be paying out over $2,000 per year in subscription services.
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While everyone has to make their own individual decisions about how to prioritize their monthly spending, there’s likely some fat that can be trimmed when you review your own spending patterns.
Recalibrate Your Grocery Shopping List
Even though grocery costs may be up as a whole, with some juggling of your shopping list, you may be able to save a little money while still eating similar foods.
For example, swap out one type of berries for a cheaper sort, or switch from a name brand to a store brand. If you like to splurge on certain types of steak or seafood, trim the times you eat them from twice per month to once, or consider less expensive varieties.
Get Rewarded
Loyalty and reward programs seem to be everywhere these days, and if you use them properly, you can end up saving lots of money. Your favorite grocery stores and restaurants likely offer promotions ranging from discounts on purchases to free birthday meals, while airline and hotel programs provide points and miles that you can use to reduce the cost of future trips.
You will generally have to provide your email address and/or phone number to score these deals, but if they’re for goods and services that you use frequently, you’ll likely find the advertising you receive to be valuable.
Live Your Authentic Life
Retirement is no time to get caught up in keeping up with the Joneses. Even worse is trying to live the retirement lifestyle that is marketed to you or that someone else thinks you should live. Retirement is when you finally have the chance to really do only what you want to.
Rather than spending money trying to look like you live a certain way, only spend money on things you really need or genuinely want.
Comparison Shop
One of the main upsides of a capitalist society is that businesses compete with each other to get customer dollars. As a consumer, this benefits you immensely.
Nearly any product or service you’re interested in is likely offered by a number of different vendors, so you can pick and choose the combination of price, service and quality that works best for you. This goes for everything from groceries and restaurants to clothing and insurance.
Downsize
Retirees often have the opportunity to downsize or relocate, two strategies that can cut down on expenses immensely.
If all of your kids have moved out of your house, for example, you might consider moving to a smaller house or apartment. If you’re still paying your mortgage, your monthly costs will likely decrease, stretching your money further. If your house is completely paid off, selling it might allow you to buy or rent a new home and still end up with tens or even hundreds of thousands of dollars in your checking account.
Laura Bogart contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 7 Frugal Living Tips Retirees Should Focus On in 2024
