Say goodbye to second cars, warehouse stores and other no-longer-necessary expenses
Retirement is a time to rethink some things: how we fill our hours and days, what we do for fun and fulfillment. And, maybe, all that stuff we’ve been spending money on for years.
You may have needed that stuff back then, for family or work. But you’re not going to the office anymore, and the kids have moved out (probably). Now is the time to take a hard look at some of the goods and services you buy and decide which ones you really need (or which ones have cheaper alternatives). Here are 10 things to consider culling from your retirement budget.
1. New clothes and accessories
If you were a white-collar worker, it’s a good bet your closets and dressers are packed with office attire collected over decades. You hardly need this stuff anymore, let alone more of it.
If you do want to supplement your wardrobe, smart-shopping expert Trae Bodge recommends skipping boutiques and department stores in favor of second-hand shops. To save even more, she says, “shop your closet” — it’s probably full of clothes you rarely or never wear that can feel new when you dig them out.
Bodge does something like this twice a year, seasonally switching out clothes from her closet. “Inevitably, I find things I forgot about,” she says. “I can hide some from myself one winter and feel like I have a new wardrobe the next winter.”
2. Pricey gifts
Buying birthday and holiday gifts for your grandchildren may give you as much pleasure as it gives them, and we’re not suggesting you stop. But retirement might be a “time to dial that way back,” says Bodge.
Consider being a little less lavish in your giving, especially as the grandkids get older and it gets harder to know what to get them. Rather than buying something expensive that might fall flat, Bodge recommends giving gift cards or a modest amount of cash so they can get what they want.
Such giving doesn’t have to be generic. Shopping sites such as Gift Card Granny, PerfectGift.com and Giftcards.com let you create personalized gift cards adorned with a memorable photo—perhaps one from a vacation you took with your grandchild—and a brief message.
3. Collectibles
Many retirees have amassed collections from once-keen hobbies that now sit around taking up space. How much time do you spend cataloging those rare coins, rearranging the Hummel figurines or playing with your toy trains? Do you really need any more of them?
Let retirement be a time to stop expanding your collection and start looking for its future home. For example, Bodge’s father, an avid collector of jazz books and records, plans to donate his collection to a local library after he dies.
“Look at your shopping habits,” says budgeting expert Andrea Woroch. “Our daughter went to school in September, and we realized we have less people eating here now.” She suggests ditching your Costco, Sam’s Club or BJ’s membership and buying smaller quantities at a local supermarket.
5. Books
Love ink on paper but still shelling out bucks for books? Bobbi Rebell, a certified financial planner and author of Launching Financial Grownups, suggests getting your reading fix for free by checking out books at your local library instead. “You still support authors by borrowing from the library,” she adds, because libraries are likely to buy more copies of popular writers’ work.
You can also browse newspapers and magazines, saving more by shedding subscriptions. And many libraries lend ebooks and audiobooks through online services like Libby and Hoopla.
6. Peak-season travel
Years ago, you may have been stuck taking vacations during peak periods aligned with your children’s spring, summer or winter breaks from school, when prices for flights, hotels and rental cars are typically at their highest. Now that you’re not tied to the school schedule, there’s a simple solution, Rebell says: “Don’t go on vacation when college kids are on vacation.” Travel instead in the fall, when schools are in session and temperatures are still comfortable.
7. Multiple vehicles
It’s common for working spouses to need their own cars for commuting, but retirees “don’t have the same obligations of being in the office or attending work meetings,” Woroch says. Translation: Now could be an opportune time for your household to downsize to one vehicle. In addition to making money by selling the spare car, you’ll reduce your vehicle maintenance and auto insurance costs.
8. Family cellphone plans
Still paying for a family cellular plan even though your kids are now grown-ups? You’re not alone. More than one-third of millennials (ages 29 to 44), and even 1 in 7 Gen Xers (ages 45 to 60), say they’re still on their parents’ cellular plan, according to a recent survey by WhistleOut, a cellphone plan comparison website.
That doesn’t come cheap: On average, a four-person family plan with unlimited data from a major carrier costs around $200 a month, plus taxes and fees, according to NerdWallet.
Woroch says reducing the number of phone lines on your plan can yield significant savings. Tell your adult kids to get their own service plans. But give them advance notice so they have time to budget for this new cost, etiquette expert Lizzie Post suggests.
9. Garden centers and florists
When you walk into a flower shop or garden center, the greenery always looks so beautiful. What’s not so attractive are the price tags. Don’t stop buying plants and flowers if they bring you joy, but you can find cheaper places to get them, says Bodge. Try budget-conscious retailers like Trader Joe’s, Lidl, Ikea or Home Depot.
Another option is to grow your own. You can also save on gardening expenses by shopping at discount chains rather than nurseries. Pro tip: Some cities and counties have programs offering free mulch or garden-equipment rentals. See what your local government offers.
10. Property maintenance services
When you were working full time, you didn’t want to spend your weekends scrubbing floors or cutting the grass, especially when you had family demands like sports games, birthday parties and religious activities. Hiring a housecleaner, gardener or other home service providers might have made sense.
Now, you probably have more time on your hands. If you’re in good health and have the stamina for it, Woroch suggests taking on chores like housecleaning and lawn maintenance to save money. These regular tasks can also be good forms of exercise.
https://www.aarp.org/money/retirement/what-to-stop-buying/
