According to the Social Security Administration, the average person gets $1,710.78 a month in Social Security benefits. You might as well double this to include a spouse or even a partner you split the bills with, but this doesn’t go as far as it used to.
That’s exactly why it’s so mandatory to find other ways to reduce your spending and maximize your money. One of the most efficient ways in which you can do this is to adopt a more frugal way of living.
Even if it can be a bit difficult at first, a bit of challenge can signify a good thing, especially when it leads to long-term financial stability and also cuts down on financial stress. And since 2024 has been here for a while now, it is the ideal time to start making some money resolutions for your own good and your household.
Reuse and recycle items
Go and check around your house to see if you’ve got anything you can either reuse, repurpose, or simply recycle. Depending on the things you find, you might be able to save money by not having to buy anything brand-new. For instance, instead of buying cleaning clothes, you can convert old ones or even towels into rags. Instead of buying more than one plastic water bottle, you can see if you reuse your old ones at least once or twice.
Don’t drive
Driving can be extremely convenient when you need to commute to and from work every single day. However, if you find yourself living a quiet lifestyle during your retirement, you might not need to keep any car around.
This is particularly true if you live in a city with complex public transportation. You can find some alternatives to driving, which can include public transportation, walking, and even riding a bike. If the car is needed, you can opt for a fuel-efficient car. This can also include an electric vehicle, a hybrid, or even a car with good gas mileage.
Choose cheap and local entertainment
Plenty of towns, the small ones included, offer free and inexpensive local events and entertainment. This could include things such as free admission to a museum or music festival. It could also be a low-cost exhibit, show, or fair downtown.
Whatever it is, you can easily cut costs and stretch that Social Security check further by profiting off of what your city has to offer. Also, make sure you’re open to brand-new types of entertainment or activities. You might even find something that you’d never thought you’d like.
Negotiate insurance policies and pay for what you need
So many people have insurance plans they don’t need or use. You can review all the different types of insurance you already have and check if you can cancel any of them. For instance, if you no longer drive or even own a car, you shouldn’t be paying any car insurance.
And since we’re discussing it, we also recommend negotiating with your insurance provider to lower your monthly costs. You can compare insurance costs and consider an independent insurance agent. This might easily save you hundreds of dollars every year. Practicing safe driving can also help with insurance premiums.
Downsize your home
If you own a home, downsizing might save you quite some time and money. You can ask yourself whether you actually need or want to live in your home anymore. Because if you don’t, you might sell it and buy something a lot cheaper. And if you do get a smaller home, you could also save plenty of money on home maintenance and your utility bills. Besides, a smaller house means less cleaning time.
Declutter the home
Decluttering your home is a great way to get organized. You can go through each room of your house and see exactly which items you don’t need or want anymore. You would be quite shocked to discover how much potential value you have lying around in a closet, or a box, or even in a cupboard.
If you decide to sell some of these items, you might also earn a bit of extra money to supplement your Social Security check. You don’t even have to sell something, as decluttering your home might give you a better idea of what you have and also keep you from accidentally buying duplicates of any of those things.
Pay only in cash
It’s quite easy to overspend when you solely rely on credit or debit cards, so you might as well switch to a cash-only budgeting system. If you use cash it only forces you to stick to a budget and see exactly what you’re spending.
It also forces you to buy things in person, which helps eliminate online impulse shopping. According to Dr. Kate Mielitz, a well-known financial counselor and AFC program manager at Beyond Finance, “You should pay in cash; don’t use Buy Now, Pay Later, or credit.”
Make a frugal budget
Another efficient way to stretch out your Social Security check is to decide on a thoughtful and frugal budget. This could involve cutting out some of the useless household expenses, such as monthly subscriptions to streaming services. It could also mean cooking more meals at home and eating out less. Even the smallest changes to your spending habits might help improve your overall financial situation.
Make lists and use discounts
You are way more likely to overspend when you don’t have a list, so you might as well make one whenever you go on a shopping spree. And since you’re at it, you might try to plan your shopping trips around current sales or promotions to save a bit more money.
If you want to keep your grocery costs down, you should make a list and try to stick to it. You should also make sure you’re taking full advantage of coupons, store discounts, and of course, store rewards programs. You can buy generic brands when you can, as you will find they are often made by the company producing the name brand.
Consider your healthcare costs
Knowing how to efficiently manage your healthcare costs is one of the biggest challenges people might face when it comes to Social Security. However, there are some things you might be able to do to minimize your expenses.
For healthcare alone, you might need to sit down with a Medicare specialist and make sure you have the proper supplemental program. Every year, your medical issues might differ, so you do need to look at your coverage every single year.
Get shared housing
If you feel that the cost of living is too high for you, you should consider getting a roommate to split those costs. Certain communities now have all kinds of formal programs to connect seniors with younger people who have roommates. Sharing housing with someone younger might provide both cost savings and a support system, especially if you still live in a house with multiple bedrooms.
Look into senior discounts and programs
It’s fine to dine out or attend paid events every now and then. However, if you are trying to cut costs, what you want is to look into senior discounts. Even if there aren’t any other listed discounts, you might still ask if the venue has any.
You might also notice what senior programs are available to you in your own community. There are plenty of states with a single application that will definitely help you to identify what you qualify for. You might even be able to get food and some fuel assistance, or housing assistance.
There’s much to know about Social Security, that’s why we recommend you try this book.
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