Maintaining financial stability during retirement is challenging for many retirees, because their income is fixed, whether it comes from Social Security, investments or pensions.
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“Balancing enjoyment and security in retirement is about clarity and intention,” said Melissa Pavone, founder of Mindful Financial Partners. “By understanding your numbers, building a detailed cash flow plan, and revisiting it regularly with a trust advisor, you can embrace the retirement you’ve envisioned.”
However, many retirees unknowingly spend money on items that drain their savings, making it harder to meet unexpected needs and stretch their money over time.
Here are four things retirees should stop buying to build their retirement savings.
According to Deloitte’s annual Digital Media Trends report, American households spend about $61 per month on four different streaming video-on-demand (SVOD) services. Financial experts say eliminating unused or unnecessary streaming services is often an overlooked way for retirees to save money.
“Kids-themed TV services or packages can be cut from your monthly bills for easy additional savings,” said Tom South, a digital marketing and SEO expert at EPOS Now, an online services payment provider.
Retirees can also look for promotions if they have multiple subscriptions, said Erika Kullberg, a personal finance expert and attorney.
“If you have multiple subscriptions, such as Hulu, Peacock, Netflix and Amazon Prime, pick the one you use the most and get rid of the rest,” Kullberg said. “Another option is to cancel and then wait for promotional offers at a greatly reduced cost.”
Unused magazines, online and club subscriptions, and apps are other areas where retirees can trim their budgets.
“Recurring charges can sometimes lead to unnecessary spending,” said Eric Coons, owner of Kaleidoscope Financial.
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Consider downsizing to a smaller home to reduce expenses. According to the latest data from the U.S. Bureau of Labor Statistics, the average adult aged 62 and over spends nearly $50,000 a year on housing.
“Maintenance, utility and property tax bills are all likely to be lower with a smaller home,” Coons said. “Better yet, finding an updated home could avoid [future] upgrades and renovations and help in the long run.”
Kullberg recommended spending money on preventative maintenance rather than “unnecessary upgrades and remodeling” if retirees don’t want to downsize or move.
