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5 Easy Ways to Lower Your Household Spending in Retirement — The Motley Fool

Retirement can be a challenging period from a financial perspective. The absence of a continuous pay check will force you to get a fixed income, and once that happens, you may need to get a stricter family budget. Here are some things you can do to reduce your expenses during your golden years, and make sure you do not have money problems on your hands.

1. Reduce your living space

Maintaining a bigger house costs money. There is more space to heat, more rooms to cool and, in general terms, higher property taxes to pay. If you no longer need the same amount of space you once had (for example, because your children grew up and moved), then reducing your home could actually reduce a good amount of money from your monthly expenses. This is especially true if you are still paying a mortgage on that house, or if you are renting in an expensive area where the additional square footage is a premium.

Older woman putting her arms around an older man


2. Limit yourself to a single car

If you and your spouse once held jobs that you could only get to by car, there was obviously a time in your life when you needed to be a home with several vehicles. But once you both retire, there's no reason why you can not share a single car and save some money in the process. According to the AAA, it costs $ 8,849 a year, on average, to own a car, therefore, if you can unload a vehicle, you can save something in that stadium.

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3. Cook more meals at home.

Special offers for early risers are popular with retirees, and while they may be cheaper than normal restaurant meals, they are still much more expensive than cooking at home. If you are anxious to reduce your expenses in retirement, preparing food in your own kitchen is a good way to do it. And in the absence of a job, you will really have time for it.

4. Explore free entertainment

It costs money to keep busy during retirement, but it is important, because the more boring you grow, the more your risk of depression increases. But that does not mean you have to spend a fortune to stay busy, either. If you look around, you are likely to find many sources of free entertainment, be it local parks, free programs at the museums in the area or events at nearby community centers. Another way to be busy for free? Voluntary. You can do something meaningful and feel good about yourself after the fact.

5. Get rid of the gym

When you're stuck in a day job, going outdoors for exercise is not always easy, especially during low light periods. But when he is retired, his days are his to dictate, which means that he can go out to exercise when his heart desires it. As such, there is no need to continue paying an expensive gym membership fee if you could use that money for more important purposes.

There are different steps you can take to reduce your retirement spending, some of which are clearly more extreme than others. The key is to achieve the ideal balance between enjoying your golden years without putting your finances at risk.

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