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.
“As a retiree, you have more time to learn new skills, so you may be able to pick up some DIY skills to save money around the house, such as learning to do minor repairs or improvements yourself,” Kullberg said. “Stores like Home Depot and Lowes offer free classes online and in person.”
It’s tempting for retirees to spend money on luxury cars, expensive trips and hobbies to have the lifestyle they’ve been working towards. However, personal finance experts say spending money on the things that matter can help stretch retirement savings.
For example, retirees can downsize from luxury or larger vehicles to more economical cars with lower maintenance fees. Travel during off-peak times to save money, and swap more expensive hobbies for more affordable alternatives.
“For example, golfers might want to check out less expensive or public golf course options,” Kullberg said. “Book lovers can often save money by choosing e-book formats.”
Premium plans and services like food delivery and meal prep services can be convenient but may not make financial sense for some retirees.
“Some of the prepared meal services can be great for inspiration, but you can save money by making similar meals yourself,” Kullberg said.
In addition, retirement is a good time to review insurance coverage, annual credit card fees and cell phone plans to find extra savings. Kullberg said reviewing premium plans provides retirees with an opportunity to adjust the plans to suit their current lifestyle while saving money.
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This article originally appeared on GOBankingRates.com: 4 Things Retirees Should Stop Buying To Build Their Retirement Savings
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