If you live on a fixed income, it’s sometimes difficult to fit fun and enjoyable activities into your budget after covering the necessities. However, many seniors can save money by making changes to their shopping habits, and by seeking out discounts and better rates. Below, learn how a few simple adjustments to your spending can make it easier to afford your favorite pastimes and activities in retirement.
Refinance Your Home
If you’re paying a mortgage, it’s probably one of the largest expenses in your budget. A great way to save money is to refinance your house. When you refinance, you can give up some equity in your home in order to free up cash or to reduce your monthly mortgage payments.
Before refinancing, you will want to research what it costs and consider how much you will actually save on your monthly mortgage. Refinancing makes sense for many seniors, but taking this step doesn’t automatically mean you’ll save money.
If you’re a U.S. veteran, a VA streamline refinance could be a great option. Interest rate reduction refinance loans are available to eligible veterans so you can take advantage of today’s low interest rates. These loans are available to veterans who have served over 90 days consecutively in active duty or 181 days during peacetime.
Cut Other Bills Down
Aside from your mortgage, your next biggest expenses in your budget probably include insurance, utilities, and your phone bill. You can’t eliminate insurance or utilities from your spending, but you can often reduce how much you need to spend. For example, when it comes to homeowners insurance, some providers offer a senior discount or allow you to save by bundling your home and auto insurance.
Likewise, utility companies may offer better rates for seniors. If not, you can reduce your bills by making simple changes like unplugging unused electronics or weatherizing your home against the elements.
Join a Club or Take Classes
For most people, entertainment also takes up a large portion of the budget. This category can include things like movies, cable TV, books, magazine subscriptions, recreational activities, and supplies you buy for your hobbies. With it being such a broad category, it’s easy to see how costs can add up.
One of the best ways to save is to join free activity groups or sign up for free educational classes. For example, nonprofits and community groups may offer a variety of exciting programs to choose from. Starting your own book club is another fun way to connect with others. By checking out books at the library, you don’t need to spend anything to get started.
Get into Meal Planning
Food also takes up a large portion of most seniors’ budgets. The easiest way to cut costs is to reduce how often you eat out at restaurants. Even fast food can add up quickly. To save even more, consider starting a weekly meal plan for yourself. With a meal plan, you can resist impulse purchases, eliminate food waste, and consolidate your grocery trips. Not only that, having a meal plan can simplify your life by giving you more time to pursue the activities and pastimes you want.
Save Money on Travel
One of the best things about retirement is that it affords many more opportunities to travel. However, many seniors on a fixed income avoid traveling in order to save money. That doesn’t need to be the case. If you’ve been looking for other ways to save money so far, you probably already have a bit more room to work with in your budget. By adjusting the way you travel, you can make trips even more affordable.
Choosing destinations close to home can save on transportation costs. However, it’s still possible to travel to far-off places if you are careful about spending. For example, SmarterTravel says you can save by visiting during the off-season, using cheaper modes of transit (such as trains), and traveling with friends who can help share costs. Even something as simple as packing your own snacks and lunches can save you a lot on your trips.
When you have a fixed income, you might need to budget more carefully. However, you can still lead the life you want by cutting back on expenses, seeking out discounts, and planning ahead.