How To Cut Costs As A Senior: 20 Frugal Living Tips

You’ve sailed away into the never-ending sunset of retirement. However, life in your golden years isn’t all sandy beaches and fun. You still have to deal with the burden of managing your financial obligations. Luckily, frugal living can help you ensure that you never run out of money.

Check out our top 20 tips for frugal living below and learn how to make the most out of your retirement savings.

1. Downsize

Are you living in a home that’s too big? If you have rooms you don’t visit at least once a week, the answer is probably “yes.” Consider downsizing to a smaller home for convenience.

You could save on housing expenses, utilities and maintenance if you choose to downsize your living space. There are a lot of options for downsizing – whether it’s moving to an area with a lower cost of living, moving in with family members or even into a senior community.

If you choose not to downsize your living arrangements, think about renting out the rooms you don’t need for extra money.

2. Think About Transportation

Consider selling the extra vehicle in your driveway. You can save money without needing to worry about those extra car payments, maintenance, gas or auto insurance. Without daily commutes, you and your spouse may be able to share a car or take public transportation.

If you have a car payment, consider selling the car and buying a cheaper or used car with cash. It might not be as luxurious, but it’ll be paid for!

3. Be More Energy-Efficient

Energy costs can add up quickly. One of the easiest ways to cut your retirement spending is to be more energy-efficient. Here are some tips for cultivating a more energy-efficient home:

• Don’t leave all the lights on: Turn off the lights when you leave a room.
• Replace shower heads: Using an energy-efficient shower head is another way to reduce your water bill easily.
• Watch your thermostat: Consider lowering your thermostat in the winter and upping it in the summer to save on your utility bills. Stay comfortable, but within reason.
• Buy high-efficiency appliances: If you need to replace your appliances, consider high-efficiency options to save on energy costs in the long run.

4. Review All Your Insurance Policies

As you continue to age gracefully, you might find that you have fewer obligations and dependents. Health care and auto insurance are two expenses where you can drastically save money if you take the time to look into them.

A common choice for individuals retiring after age 65 is to enroll in Medicare. You could also consider canceling your disability insurance or life insurance premiums.

Since the purpose of life insurance is to ensure financial support of dependents in the event of a death, but the average retiree has no dependents or employment income, it’s not always necessary.

Another important policy to review is your auto insurance. Some auto insurance companies may offer senior discounts if you’re driving less or offer a safe driving course for extra savings.

If you have expensive or unnecessary health care or auto insurance policies, now is the time to review them. Only continue to pay for coverage if it makes sense for your lifestyle.

5. Refinance Your Mortgage

Refinancing your mortgage could lead to a lower monthly payment or a shorter loan term. Whatever your money goals are, a refinance can help you reach those goals sooner.

Start the refinancing process with Rocket Mortgage®.

6. Consolidate Or Pay Off Debt

If you still have lingering debts holding you down, make an effort to pay them off even if it means temporarily coming out of retirement for a part-time job or consulting gig. Debt can make it difficult to breathe easy in retirement because growing interest could impact your retirement plan.

7. Improve Your Credit Score

If you have a low credit score, make time to change that. You can improve your credit score significantly by making on-time payments and disputing any errors on your credit report. You can find tips and monitor your credit with Rocket Money^SM to get you where you want to be.

8. Freeze Your Property Taxes

Property taxes can be a large expense each year. The constant increase of property taxes can be difficult to budget for down the line. Luckily, many states allow their seniors to freeze their current property tax rate to avoid an annual increase. You’ll need to contact your local tax office to see if this is an option for you.

9. Look At All Your Subscriptions

If you have an outrageously large cable bill, you could save potentially hundreds by cancelling it. Switching to a streaming service might be an easy way to add some breathing room to your budget.

Monthly subscriptions can add up quickly, though. Evaluate your needs, consider joining family plans and cut out subscriptions you no longer need.

10. Take Advantage Of The Senior Discount

AAA and AARP are two of many programs and organizations that offer senior discounts. Sometimes these special savings aren’t always advertised, so you just have to know when to ask. Ask about senior discounts and rates next time you’re out and about:

• At a restaurant
• Shopping at clothing or department stores
• Talking with your cell phone provider
• Talking with your cable provider
• Seeing a movie
• Visiting a museum
• Apply for recreational licenses
• Booking travel arrangements

Embrace the retirement age and claim your savings no matter where you go.

11. Save On Travel

Ready to check places off on your bucket list? It’s easy to save on travel with senior discounts on flights, trains, hotels, car rentals, cruises and more. Although you likely have the time to travel whenever you please, the working world isn’t so lucky. Take advantage of that and book your travels during the off-season.

Travel rewards offered by credit card companies can also be a great way to stretch your travel budget. If you have a long list of places to visit, it might turn into a large expense. Consider earning travel rewards points to fund your wanderlust.

12. Shop With A Purpose

When you have to go grocery shopping, be mindful of what you're spending money on. Some of the best shopping tricks are:

• Coupons: Find them both online and in the newspaper.
• Cash rebates: Ibotta is just one app that can help reduce your grocery expenses. But there are different cash-back cards and programs available.
• Loyalty programs: Get rewarded with points on groceries, gas and more at the stores you frequently visit.
• Buy in bulk whenever possible: You might be surprised by how much you can save over time or even share groceries with a neighbor or family member.

Remember to take stock of what’s already in your cabinets before heading to the store. That way, you aren’t wasting money on buying too many of the same items.

13. Plant A Garden

Not only will a garden provide free veggies, but you’ll also get countless hours of free entertainment. You may even be able to score free seeds from your local library or university.

14. Get A Library Card

A library card can be your gateway to free entertainment. Not only do libraries offer books, but they also have DVDs of popular movies and television shows. Plus, many have computers that are available for free use.

15. Try To DIY

DIY is often cheaper, but you’ll certainly spend more time. Some of the best DIY projects and tasks include:

• Minor car repairs: Almost everyone can handle minor car repairs such as swapping out windshield wipers.
• Crafting: A quick DIY tablecloth could transform your entire dining room.
• Sew: If you have minor clothing issues, a quick stitch could be the solution. You’ll be able to hang onto your favorite clothes for years to come.
• Cut back on dry cleaning: Look for clothes you can wash at home to save time and money.
• Groom your own pets: If you have a furry friend, consider grooming them yourself. In addition to cost savings, it can also be a bonding experience.

16. Attend Community And Free Admission Events

You might be surprised by how many free activities are available near you. Many cities offer free concerts all year-round and museums and art galleries may offer free admission for seniors.

Hiking is a fun and free activity to fill your days. You can find trails to suit all fitness levels by doing some easy research online. Or if you want a bigger adventure, the National Park Service offers a significantly discounted senior pass. With that pass, you’ll be able to access some of the nation’s most beautiful places throughout your golden years.

Explore your local culture while enjoying a free day out.

17. Cook At Home

Although eating out is a nice treat, you might not be able to afford going to a restaurant every night. Consider learning how to cook your favorite meals at home so you’re less tempted to go out. Even if you don’t have a crowd to feed, consider cooking in batches. You can always freeze the leftovers.

If you do want to go out to eat, avoid appetizers and desserts that can inflate the total cost of your meal.

18. Plan Ahead For The Holidays

Finding the best present for everyone on your list can be difficult. It’s even more difficult to find that perfect gift at a good price. Make your holiday budget and shopping list ahead of time and shop for deals throughout the year.

When the holidays arrive, you’ll already have your bargain-priced gifts on hand and avoid the stress of last-minute shopping. Enjoy the holidays without going into debt this year.

19. Stay Healthy

Although you may not want to start running marathons, making time to exercise every day is a cheap way to stay healthy. Even a walk around the block can be a great activity.

This also means eating healthy. You can make your body strong and keep your mind sound by eating healthy and drinking more water. Not only will eating healthy make you feel good now, it can help prevent serious (and costly) health problems down the line. As you’re drinking more water, consider buying a reusable water bottle to cut down on expensive and wasteful plastic bottles. Be sure to discuss any major changes to your diet with your doctor – they know you best!

And try to visit your doctor and dentist on a regular basis. If they catch a health problem early on, you can save thousands of dollars.

20. Create A Budget And Stick To It

If you’re living on a fixed retirement income, it’ll be relatively easy to craft a simple budget. Make sure to include monthly expenses as well as annual expenses. Once you understand all your monthly bills, try automating as many payments as you can to avoid extra late fees and build up your savings.

Keep in mind, simply creating a budget is not enough. You need to stick to your budget. Otherwise, you may have to worry about running out of money, which is something no one wants to worry about.

Consider working with a financial advisor to help you stay on track.

The Bottom Line On Saving Money In Retirement

Saving money in retirement doesn’t happen overnight. And not every tip will work for everyone. It’s important to evaluate your priorities and choose which frugal tips will work best in your own life.

Looking for more ways to save? Read our guide on how to save for retirement.