Saving Money: Ways to Save for the Newly Retired

Individuals spend a lifetime working and saving money to prepare for retirement. Once they reach this well-deserved milestone, it is time to drawdown their savings and begin to enjoy the fruits of their labor. However, the newly retired should not give up so easily on their desire to save money.

While maintaining a certain standard of living should be paramount, there are a number of ways to save monies in retirement that do not involve compromising on comfort or enjoyment. Read on for seven smart ways the newly retired can save.

How to Create a Retirement Budget?

Creating a budget remains a vital part of any financial regimen, regardless of your stage in life. Living within your means never goes out of style, and a budget will keep you on track to be responsible with your finances.

A retirement budget is slightly different than a budget for a working household, as income will likely be smaller than before. This should be taken into account, though the same principle of budgeting for both needs and wants remains the same.

First and foremost, make sure to cover necessary expenses such as housing and groceries, transportation, and health and medical costs. You should most definitely budget for your discretionary purchases, as depriving yourself of these enjoyable experiences is certainly not the point. Just make sure you have enough on-hand to cover them.

Think About Ways to Downsize

Thinking about ways to cut your costs can also include trimming the space and the accessories that you are using.

Moving to a smaller house or condo could help you not only save on expenses, but will also be easier to take care of and maintain. Similarly, the need for two cars might decrease, removing another burden on your finances.

If there are other possessions that you are no longer getting value from, think about selling them. Musical instruments, kitchen utensils, or anything else that you are no longer using on a regular basis could bring in a little extra cash that can be spent elsewhere.

Look for Senior Discounts

There are a slew of senior discounts available, from decreased fees on public transportation to discounted movie tickets. Take these into account when making plans, and look for cheaper options to enjoy the same attractions at reduced costs.

There are a number of restaurants, museums, and even retailers that offer senior discounts to those above a certain age. Sometimes these are restricted to specific hours or days, so do your research to make sure that you take full advantage of these options.

Travel During the Off-Season

You are retired, and no longer dependent on work schedules or a boss’ approval prior to travel. This provides an enormous amount of flexibility for vacations. Think about traveling during the off-season, when flights are cheaper, hotels are more available, and attractions are less crowded.

Whether you are going to visit family or jetting off to parts unknown, research where you might be able to cut-down on costs by traveling when the majority are unable to take time off of work or school.

You can also apply these lessons even if you want to come home for the holidays. Look into traveling a few days before the Thanksgiving crush, or extending your trip by a few days after the holidays. If you are not in a hurry to get home by a specific date, you might be able to save by waiting a day or two.

Be Vigilant Against Scams

Senior citizens are prime targets for the unsavory, and it is absolutely essential that you are vigilant against potential scams and cyber theft. Part of a healthy retirement is taking care of your hard-earned money, so do not let the unscrupulous trick you out of it.

Pretending to represent a reputable institution or individual in an attempt to convince you to share your data is known as phishing, and it is a common practice among Internet thieves. Therefore, it is important to retain a healthy sense of skepticism when you receive an email or text asking you to supply information.

Banks and other financial institutions will never email you asking you to share your account information, pin number, or social security number, so if you receive such a query your suspicions should immediately be aroused. If you are unsure or have your doubts about the fidelity of the sender, trust your instincts and call your financial institution’s customer service number to confirm whether or not the communication is authentic.

Take Care of Your Health

The older you get, the more you will be spending on your medical expenses. While certain health issues are simply a matter of genetics or circumstance, there is plenty that you can do to take care of yourself.

Regular exercise regiments are good for both body and soul. Now that you are more flexible with your time, make sure that you are working out multiple times a week.

If you can find a social group or friend or two to share these activities, all the better. Working out with partners can keep you disciplined, providing extra motivation not to miss a session.

Beyond the health benefits, studies have shown that exercise is good for the brain and for your self-esteem. But in terms of your budget, preventing medical procedures and avoiding costs pays for itself many times over.

Consider Part-Time Employment

You have spent a lifetime in your 9 to 5, and now it is time to relax. However, that does not mean that you need to necessarily stop working entirely.

Consider getting a part-time job, one that brings you enjoyment and a little extra cash on the side. If you are a social butterfly, this could be as a greeter at a retail store. If you love books, think about picking up a shift or two a week at a bookstore. If you have professional expertise, you could become a consultant, helping those in your previous industry with problems and issues you have particular knowledge about.

Your budget consists of both income and expenses. If you want to increase the amount you are spending, think about creative ways to increase the funds coming into your accounts.

Conclusion: Enjoying Your Golden Years

Financial planning is always important, though different periods in life bring about different decisions. Your basic needs and desires do not change because you are now retired, though your income may take a bit of a dip.

The need for smart financial decision-making, however, never ceases. In fact, being retired might open up new ways to update your savings and spending strategies for the better.

The Golden Years are a special time. They can and should be full of new experiences that enrich your life. There is no reason to wreck your budget in order to do so.

Learn money management, and use data-driven stock insights with TipRanks.