Smart Savings: 7 Frugal Living Tips for Retirees in 2024

It’s easy to think of retirement as the time to let go and live — how many years have you been working? — but with a little frugality, you can live the comfortable life you deserve. The good news is that you don’t necessarily have to overhaul your entire lifestyle to be frugal. In fact, with a few simple tips, you can be sure that your nest egg won’t slip away anytime soon.

In a little research, did some quick math to come up with a list of simple, frugal tips to help make your golden years shine brighter.

Save on your Social Security increase

In 2024, retirees will get a 3.2% cost-of-living adjustment on their Social Security checks. That’s well below the staggering 8.7% increase in 2023, but roughly in line with the current inflation rate, which some economists expect to fall further in 2024.

But inflation is a spotty measure. Depending on where you live and what kind of lifestyle you lead, it’s quite possible that your costs will only increase slightly or even decrease in some areas.

If so, or even if you don’t, saving your Social Security increase instead of spending it will help your money last much longer. If you’re able to keep your total living expenses about the same, put your 3.2% Social Security increase into a savings account instead of spending it. For an average Social Security check, that’s an extra savings of about $59 per month, or about $708 per year.

That might not sound like much, but if an emergency occurs in 2024 or 2025, adding a few hundred dollars to that savings could help you stay out of debt.

Cut Back on Your Subscriptions

If you take a close look at your monthly bill, you’ll be surprised at how many recurring costs you incur each month. Streaming subscriptions like Netflix, Hulu, and Amazon are big culprits and can total more than $100 a month. But there can be a lot of small costs you didn’t think about that can add up over the course of a year.

For example, paying $5 a month for PBS, $2 a month for 10 online newsletters, and donating $20 a month to your favorite charity adds up to an additional $540 a year. Combined with streaming costs, you could be paying more than $2,000 a year for subscription services.

While everyone has to make their own decisions about prioritizing their monthly expenses, there are probably some things you can save by reviewing your spending patterns.

Rethink your shopping list

Even if the overall cost of groceries has gone up, making small changes to your shopping list may allow you to save money while still eating similar foods.

For example, swap out a type of berry for a less expensive one, or switch from a branded product to a private label. If you love eating a particular steak or seafood, opt for the less expensive variety instead of eating it twice a month.

Get rewarded

Loyalty and rewards programs are everywhere these days, and if used right, they can save you a lot of money. Your favorite grocery stores and restaurants likely offer promotions that range from discounts on purchases to free meals on your birthday, and airline and hotel programs give you points or miles that you can use to cut down on future travel costs.

Typically, you have to provide your email address or phone number to take advantage of these offers. However, if these are products or services you use frequently, you may find the ads you receive valuable.

Live Your Authentic Life

Retirement is not the time to worry about how you fit in with the people around you. What’s worse is living the retirement lifestyle that’s been advertised or that someone else thinks you should live. Retirement is finally the time when you have the chance to do just what you want.

Instead of spending money to make it look like you’re living a certain life, spend it only on what you really need, what you really want.

Compare Prices

One of the greatest advantages of a capitalist society is that companies compete with each other for customers’ money. As a consumer, this is a huge benefit to you:

Nearly any product or service you’re interested in is likely offered by a variety of providers, allowing you to choose the combination of price, service, and quality that’s best for you. This applies to everything from groceries and restaurants to clothing and insurance.

Downsizing

Retirees often have the option of downsizing or relocating, two strategies that can significantly reduce costs.

For example, if your children have all moved out, you could move to a smaller house or apartment. If you’re still paying a mortgage, your monthly expenses could be reduced, leaving you with more money in your pocket. If you’ve paid off your home, selling it could mean you can buy or rent a new home while still having tens or even hundreds of thousands of dollars in your bank account.