Financial priorities and personal needs change during each stage of life, but the retirement years frequently present the biggest challenge. When a leave-no-stone-unturned approach to trimming expenses is necessary, adult children may be able to help their parents do the detective work.
Depending on income level, retirees need 77 percent to 88 percent of their preretirement income to sustain their lifestyle. Eliminating small expenses can result in big savings and help you meet retirement income goals.
Go through credit card statements with a fine-tooth comb. Small amounts can be charged to your credit card every month, and it all adds up. Look for recurring charges such as magazine renewals, credit score monitoring or online services that no longer are being used.
Stop doing what you’ve always done. Do not automatically renew memberships in professional and civic organizations in which you’re no longer active.
Review charitable giving. Curb the amount of charitable giving or budget for it. After 40 or more years supporting charities, it may be time to let the next generation take the lead. Before making any donation, review the charity’s rating and the impact of a donation on your budget.
Reevaluate insurance needs. Review your life and auto coverage to ensure that policy details match your needs. Do you have kids at home? How many miles do your drive a year? Do you still commute? Consider adding roadside assistance to your auto policy rather than maintaining membership in an auto club.
Mine the Internet. Use the Web to find senior discounts, early bird dinner specials or other dollar-stretching deals. Sign up for email alerts to get discounts at your favorite restaurants.
Buy only what you need. Try to stop misplacing bills or inadvertently stockpiling household items like cleaning or personal hygiene products. Get a system in place that helps you know what you’ve got in the house and where to find it.
This article was published in the Founders FCU's Springtimers Times Newsletter (September 2011). Article source is AARP.com