Regardless of what stage of life you are in, it can sometimes be difficult to keep spending in check with your incoming cash flow. But before you reach retirement, it is essential that you have a fairly accurate projection for your future expenses and income stream(s). Otherwise, you could be in for a big surprise. One way that you could stretch your income in the future is by reducing your outgoing expenses.
Tips for Reducing Expenses in Retirement
There are many ways that you can reduce your expenses in retirement – and even if some strategies seem “too small,” the reality is that every penny that is saved will eventually add up! These money-saving methods can include:
- Reducing internet, cell phone, and/or cable television services
- Keeping your utility usage in check
- Shopping for cheaper insurance rates
- Cooking and eating at home more often
- Selling a vehicle that you rarely drive
- Creating and sticking to a budget
Reducing Internet, Cell Phone, and/or Cable Television Services
One way to reduce what you’re spending is to consider other internet, cell phone, and/or cable television services. For instance, do you really need all of the movie channels that are driving your cable TV bill up? If not, you could save yourself $50 to $100 per month – or more.
Keeping Your Utility Usage in Check
Another area to be mindful of is your utilities. In this case, make sure that you turn off lights when you leave a room and go into another. It can also help to keep the thermostat temperature a bit lower when you’re using heat and alternatively a few degrees higher in the hot summer months. It is amazing how much of a difference that can make on your electric and/or natural gas bill.
Shopping for Cheaper Insurance Rates
It is likely that you have insurance coverage on one or more vehicles, as well as on your home, your health, and your life. No matter how low your current premium on these policies may be, though, it doesn’t hurt to shop around for lower costs – especially if you can keep the amount of the coverage the same. In addition, consider “bundling” your insurance policies with one company, because insurers will oftentimes give policyholders a multi-coverage discount.
Cooking and Eating at Home More Often
While retirement may be a time to relax, cooking and eating your meals at home can allow you an opportunity to hone your culinary skills, while at the same time lowering your overall food bill. This is especially true if you are able to consume the leftovers for one or more additional meals.
Selling a Vehicle that You Rarely Drive
If you have a spouse or partner, and you both drive a different vehicle, it may be time to consider selling one of them. This can help you to save on direct costs for the vehicle – such as maintenance – as well as decrease your auto insurance bill.
Creating and Sticking to a Budget
One of the best strategies for reducing your expenses – both before and after retirement – is to create a budget, and then stick to it. This can help you to take a good look at how much money flows out of your household every month. Plus, it may also be a reminder that you should not make impulse purchases.
Need Help Filling in an Income “Gap?”
If you’ve come up with an approximate amount for your future spending and income – and you still have a “gap” between the two – meeting with a retirement income specialist can help. At Annuity Gator, our mission is to educate consumers and financial professionals on how to create one or more ongoing streams of income that will continue flowing in, no matter what happens in the stock market or with interest rates.