Reaching retirement is quite the milestone. It’s the finish line at the end of decades of hard work, long hours and plenty of sacrifices. As an older adult who has reached or is reaching retirement age, you may feel a sense of optimism for what the future holds but can’t help to also feel a tinge of anxiety given the current economical climate.
The cost of living is higher now than ever, making it harder to afford basic necessities let alone save money for the future.
As a senior, learning how to live more frugally can help you to handle your hard earned savings and navigate the costs of living without putting a dent in your nest egg.
Whether you’re fully retired or still working part-time, here are 10 frugal living tips for seniors:
Establish your prioritiesTransitioning from work to retirement or semi-retirement requires careful planning. According to the Retirement Living Report by New Zealand Seniors, most pre-retirees do not have a financial plan, and 2 in 5 retirees report that they do not feel prepared at all financially for retirement.
Establishing a retirement plan and budget should be the first thing to tick off your list. If it helps, you may wish to speak to a financial advisor. Along with establishing a plan and budget, you should also take care of your healthcare plan and review your insurances.
You can compare life, house and health insurances for free online to ensure you’re getting the best deal on each.
Consider downsizingIf you’re still living in the family home despite all the kids flying the coop, or have recently undergone a divorce, then perhaps it’s time to reassess your living arrangements.
Downsizing to a smaller home or an apartment will help you to save money as a senior and open you up to a new chapter in your life.
Downsizing can free up money to pay off your mortgage, invest or spend. A smaller home is also more manageable (less time cleaning!) and you can choose the location to better suit your current needs.
Make a passive income
There are many ways seniors can make a passive income to help support their lifestyle and cost of living. From finding casual or part-time work to investing in cryptocurrency or turning your hobby into revenue by opening an online store; there is no law against getting a “side hustle” as a senior. You can even make money by completing online surveys, renting out a room in your home or by teaching an online class!
Take advantage of senior discounts
One of the great advantages of reaching retirement age is that you’re eligible for senior discounts! Many businesses including cafes, restaurants, hotels, museums & galleries, theme parks and public transport services offer discounts for seniors. It might not seem much, but every discount gained makes a big difference! Start taking advantage of them now.
Shop secondhand
Thrifstores aren’t like they used to be! Nowadays, you can find high-quality clothing and furniture for just a fraction of their recommended retail value. From cooking utensils, giftware, books and even garden supplies, shopping secondhand will save a huge chunk of money - allowing you to put away more money in your savings fund!
Grow your own produce
How expensive are fruits & veg lately?! It is a worry when a meal from McDonald’s costs less than the vegetables needed to make a healthy home stirfry. For this reason, why not get out your green thumb and grow your own?
From lettuce and spinach to onions and potatoes, growing your own produce at home will save you a ton of money at the grocery checkout and will keep you active and outdoors!
If you haven’t got the space for a veggie garden, find your local community garden. These public spaces give you the option to rent a plot of land to grow and harvest your own food.
Plan your meals
Meal planning can cut down your food waste and weekly grocery bill. When you have a plan, it forces you to stick to the items you need when shopping. Bulk cooking and freezing meals are another great way to save time and money.
You can find a range of make-ahead-of-time meals online to last a month! And if you do decide to eat out, take advantage of those senior specials!
Get rid of things you don’t need
From unwanted household items to monthly subscriptions; get rid of them! Whether you choose to have a garage sale, sell old items online, or simply declutter your house and finances - getting rid of the things you don’t need will free up more space and time and will help you to save money.
Make meaningful purchases
Living frugally doesn’t mean having to skimp on all the finer things in life! It simply means making more purposeful purchases with your funds. By taking on a more minimalistic approach to life, you will learn to differentiate needs from fleeting desires.
When you do make a purchase, take the Marie Kondo approach and ask yourself; “does this item spark joy?”. When you make your purchases more meaningful, you will get to enjoy more long-lasting benefits. It also gets rid of the temptation to impulse buy - which can quickly eat away at your hard-earned savings.
Be energy-efficient
Lastly, saving on your utilities can help you to live more frugally as a senior. If you haven’t done so already, speak to your provider to see if you’re eligible for any senior discounts or deals.
You can also save on your gas, water and electricity by being more mindful of how you use energy. Making simple changes such as turning off the lights when you’re not in the room, swapping out old lightbulbs for energy-efficient LED bulbs and recycling greywater are all ways to minimise your monthly energy bill and reduce your carbon footprint.
As a senior, the last thing you need is the burden of worrying about your finances. These frugal living tips are just some of the ways you can save money as a senior which will allow you to enjoy your retirement years without the fear of running out of money.
Find the ones that work for you and start practising them! Remember to stick to your retirement plan and budget. Doing so will help you to better enjoy your golden years on the income you have.
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