For seniors on a fixed income, making ends meet can sometimes feel like an impossible task. At the same time, seniors may also face health problems or disabilities. Such challenges make money saving tips for seniors an important topic.
After all, health problems, disabilities, and other challenges can all be costly in their own right and can make the process of saving money that much more difficult.
Even if you are managing to live successfully from one week to the next, finding ways to cut your expenses may still be an important goal. In particular, you don’t want to be in the situation where one bill or one crisis puts you in a financial situation that you can’t recover from.
Thankfully, there is a range of different ways that you can go about decreasing your expenses and saving money. In this post, we’re going to cover many of these approaches and show you multiple money saving tips for seniors. Some of these are simple, while others may be more complicated. You may also find that some of these suggestions are not relevant to your current situation, while other ones may be a perfect fit.
Many of these ways to cut expenses will apply to just about any lifestyle or financial situation. After all, even if you have no financial issues, finding ways to cut down on your expenses is always a good thing, especially if you can do so without impacting your lifestyle.
Money Saving Tips for Seniors
Cutting Down Spending
The simplest advice that you will hear about reducing costs is to simply cut down your spending. Now, we all have expenses that have to be paid, but many of us also spend on frivolous things.
Cutting down our cuts is often more difficult than it sounds. Let’s face it. Some purchases make us feel better emotionally. So, how do we get around this?
Well, there are some tricks that you can use to cut down spending effectively that actually work.
At the same time, there are also ways to cut down your essential bills. After all, no matter what we do, there are always going to be some bills that we have to pay. But, sometimes, we end up paying more than we actually need to.
Rely on Cash
Nowadays, it’s easy to pay for just about everything using a card. But, regardless of whether that card is credit or debit, that process makes it easy to spend money.
One problem is that when we spend money off a card, it doesn’t seem to have as much significance – probably because we aren’t physically handing over money.
At the same time, it’s very easy to lose track of just how much money we spend from a card. Even if you try to keep a tally in your head, it’s easy to forget or miscount.
One simple way around this is to rely on cash instead of money off your card.
By doing this, you have a better idea of exactly how much you have spent and know more about how much money you have left. You may also find that you are less likely to spend money as a consequence.
Some people also choose to just take as much money as they need with them. For example, you might take $50 with you if that is your grocery shopping budget.
However, if you choose to do this, it’s probably a good idea to have some backup on you because things don’t always turn out how we expect them to.
Go Without a Car
For a couple with multiple cars, selling one car is a sensible way to reduce costs and also earn a little money.
If one or both of you is retired, then you may be able to figure out ways to meet your needs with only the one vehicle.
In some cases, it may also be possible to go without a car altogether, especially if you live in a very walkable neighborhood. In theory, not having to pay maintenance and other costs for a care can be an area where you save a considerable amount of money.
However, this is a decision that you have to be very careful about.
Many seniors struggle with the issue of not having good transportation options, which can end up compromising both their physical and their mental health. At the same time, there is also the risk that your circumstances will change in some way and you will need a car in the future.
For example, you might have to move to a different neighborhood or you may have a family member who gets sick.
Additionally, you may find that alternative methods of transport end up being just as expensive as having your own car. This might not be an issue if you rely mostly on buses and there are some alternative forms of transportation that can help as well. Nevertheless, the cost of transportation in your area is something to seriously consider.
So, going without a car can be a good way of cutting down costs but only if it suits your situation and lifestyle.
On a side note, you can also decrease your costs simply by cutting down on how much you use your car.
For example, if walking isn’t a problem for you, there may be some places that you can walk to instead of driving. Likewise, busing may be an option in some situations or even carpooling with a friend.
On the plus side, opting for your sneakers instead of Uber or your car can lead to more exercise and new friends, which may be an additional reason to avoid using your car all of the time.
Look for New Medicare Coverage
Many people assume that their current Medicare coverage is still going to be the best deal but often this isn’t the case.
Instead, it’s worth taking the time to look at the different options available and find out which one is best suited for your current situation.
If doing this seems a little overwhelming, then you may want to find a friend or a family member that understands the concepts and can help.
Pay for Services Annually (If Possible)
Many services offer the option of paying annually. Insurance is one example of this but there are also countless others.
Paying annually does mean a larger cost up-front but typically you end up paying less than if you were paying week-to-week or month-to-month throughout the year.
Nevertheless, this is something to be a little careful with.
You don’t want to be paying a lump sum if doing so means that you cannot pay other bills. Likewise, you need to plan for this payment so that you can make it each year – which will typically mean putting some money aside each month.
Don’t Buy New Books or Movies
Books and movies get expensive quickly and most of the time you only get one use out of them. Now, this doesn’t mean that you can’t read or watch movies, it just means that you need to do it in a different way.
For example, libraries are a great place to get books to read. Likewise, there are services that rent out movies. If you are up with technology, there are also ways to stream movies online and even read books this way.
But, there are still options even if you want your own physical books and movies.
In particular, you can often buy them second hand, such as from garage sales, second hand stores or fairs. In many cases, you may end up paying almost nothing for what you want.
You can also get books and movies through sites like eBay and Craigslist. With this approach, you may end up paying a little more but you also have a better chance of getting exactly what you’re looking for.
Regardless of what approach you take, all of these different ways end up being much less expensive than buying books or movies new. Plus, the process can be pretty fun.
Be Smart with Shopping
For many people, going into the grocery store almost always means that they’ll come out with at least one item that they didn’t intend to buy. Certainly, having a treat now and again isn’t a bad thing and we all need this to some degree.
However, if you are going to the grocery store multiple times in a week, that practice can end up getting pretty expensive.
Limiting your shopping to once a week (or even once a fortnight, if possible) and planning ahead can be a good way of decreasing how much food you buy and saving money.
You might also consider generic brands.
- This is an area to be careful with, as some generic products are low-quality. Others aren’t that much cheaper than branded products.
- But, many generic products are cheaper than branded options and are just as good. These ones are a fantastic way to save money.
One other thing is the idea of buying in bulk, especially from places like Costco.
In theory, buying in bulk can be a great way to save money. However, you need to be very careful about actually doing this.
One problem is that people often end up buying more than they intend to when they start going to stores like Costco, which negates the whole purpose. Likewise, people might buy things like candy in bulk because it’s a good price, then eat it much faster than they would normally.
If you take those approaches, you aren’t saving money at all.
Instead, bulk buying is best for things that you use consistently and regularly, like toilet paper. It can be a way of saving money but it’s only worth it if you are very careful.
Realistically, for most seniors, buying in bulk probably ends up being more hassle than it is worth.
Decrease Your Power Bill
Power bills can be expensive, especially in winter. But, there are some little approaches that you can take to decrease your power bill.
The first of these is that in most counties, aging services work with low-income seniors to help them reduce the cost of services, including electricity and gas. Often this will mean that seniors qualify for discounts or for reduced rates.
This is worth enquiring about, even if you don’t think you will qualify, as any discount will help to decrease your bills and help you to save money.
One example is to turn off heat to the rooms you aren’t using. This might seem obvious but people often don’t do this. If you can’t turn off heat, you can shut off entire rooms. In many cases, people just choose to heat the living room and their bedroom in the winter months and avoid other rooms at night.
However, do be aware of your health.
It can be tempting to cut heating down as much as possible and heavily rely on blankets to keep you warm. This can be helpful to a degree but you need to take care. If you allow the air around you to get too cold (even if you are bundled up), then you may risk getting sick.
Likewise, if the house itself isn’t warm enough, you may find that you get cold when you move from one place to another. Generally speaking, this approach isn’t worth the risk, especially if for elderly people.
Realistically, it isn’t worth risking getting sick just to save a little on energy, especially as getting sick comes with its own costs. In many cases, it would probably be cheaper to just use the energy in the first place.
Another approach is to unplug and/or turn off anything that isn’t being used.
Many of the items in your house will use some power even when they’re not switched on and in most cases it’s simple enough to just plug them in when you need to use them.
You can also save power (and in some cases, water) by making sure you don’t do any partial loads with dishes or the laundry. This is even true if you’re washing dishes by hand. After all, filling up a sink of hot water for a handful of dishes is a little wasteful.
Shortening your showers is also another way of decreasing the power that you use and it’s a key approach.
Sell Things
Placing this one in a list of money saving tips for seniors might seem a bit off, as the idea is to make money. Still, extra income never hurts, especially if you’re just getting rid of things you no longer need. these.
Sites like eBay and Craigslist are a great place for this and you may be able to get a family member to help if you aren’t confident in doing this. Likewise, you can also sell at consignment shops. There are plenty of useful apps too.
Selling items does make sense if you’re not using them anymore but it isn’t as powerful as finding ways to save money in the first place. After all, you can only sell items once and you would run out of things to sell fairly quickly.
As such, it’s best to look at this as a practical approach for decluttering rather than a way to make money. Realistically, you’re also likely to find that many things you sell won’t actually make you much money anyway.
Saving Money With Clothing
There are some programs out there that can help you to decrease your costs. People often ignore these programs because they feel that they won’t be eligible. This may be true, but you don’t know until you try. We’ve seen plenty of people end up on supportive programs who assumed that they would be rejected outright.
Now, there are a lot of different programs out there, including some that are state- or region-specific. Because of that, we’re just going to briefly cover two of these programs.
In addition to these programs, another option is services that senior centers provide. Often seniors centers will have a lunch program, which provides seniors a lunch at the center. In many cases, those lunches will be low cost or will just require a donation.
Not only can this be a way to get inexpensive food but it also offers a good way to be social and make new friends.
Supplemental Nutrition Assistance Program (SNAP)
Now, you have probably heard about SNAP (or food stamps, as it used to be known) before. This program is targeted at low-income families, and provides a safety need to ensure that people get enough to eat.
The program is widespread, although the specific amount you will get varies from state-to-state, partly based on living costs and food costs in that area.
There are also special rules in place for households that have an elderly member (60+ years of age) and these can make it easier for seniors to get SNAP benefits.
When you’re on the SNAP program, you receive an Electronic Benefit Transfer (EBT) card, which is credited on a monthly basis with your allowance. This can be used in the same way at a credit card in an increasing number of stores.
One advantage of this program is that your use of a EBT card is generally not obvious to other people in a shopping line, which helps reduce any potential stigma. At the same time, the credit is loaded automatically, so you don’t have to go anywhere for it each month.
For many families, being on the SNAP program doesn’t offer enough to completely cover their food for a month – although it may if you live alone.
However, even if it doesn’t, the program can certainly decrease the amount you spend on food each month.
Meals on Wheels
As a program, Meals on Wheels has been around for a long time. In fact, the program is even present in other countries.
Unlike SNAP, Meals on Wheels is specifically targeted at the elderly and people who are not able to move well. Many recipients of Meals on Wheels are housebound or have significant difficultly moving or preparing their own food.
Because of this, the approach may not be relevant for everyone. However, if you do struggle to prepare meals or to get out often, this can be a good way of making your life easier.
Additionally, this process can help you to save money because the programs are typically free to users.
Housing-Related Money Saving Tips
One key area to look at when it comes to money saving tips for seniors is your accommodation. For many people, the cost of housing takes up a significant proportion of their income, which can be a problem if their housing is too expensive or is unsuitable for their needs.
Downsizing
Many of us have a natural tendency to want to stay where we are, especially if we are living in a house or a neighborhood that has been our home for a long time. However, as people age, their needs change. Because of this, seniors sometimes find themselves in a house that is much too big for them or one that is impractical for them to maintain.
Having extra space is certainly appealing in some situations, especially if you want to have friends and family over to stay. However, it’s also important to weigh up the benefits of staying in your current place versus the disadvantages.
For example, one disadvantage that people find is that a larger house is expensive to heat in the winter. Likewise, larger homes tend to require more maintenance and cleaning, which can be an especially big issue for seniors with mobility problems.
Problems of cleaning and maintenance can also become more significant if your house is very large or has stairs. In some cases, I’ve seen seniors living in a two-story house who struggle to get to the second story and do so very rarely.
It can be tempting to simply try and work through any challenges that your accommodation gives you but this can have negative impacts in the long-term.
For one thing, if your house is a poor fit for your needs at present, that fit is only going to get worse as you age. Furthermore, it’s important to be living somewhere that is safe and doesn’t put you at risk. If you are struggling to get around or to maintain your home, there is a serious risk that you will fall or injure yourself in some way.
As a consequence of these factors, downsizing can be a viable solution for many people. Not only can downsizing make it easier to be independent but it can also free up finances.
However, this is also something that you need to consider seriously.
If you are renting, then downsizing is likely to work out well, especially as you can compare differences in rent long before you make the move.
If you own your own house, there are additional things to consider, including how much your house is worth and whether you would buy a smaller place or start renting. For example, downsizing from a $400,000 home to a $300,000 one probably wouldn’t be worth the effort because of all the fees involved.
Talking to a financial advisor and to friends and family can be a good place to start.
On a final note, one advantage of downsizing that people often don’t consider is that it makes it easier to curtail spending. If you are living in a small place, then you will find that you have to be very careful about what you spend your money on, otherwise you simply run out of places to put things.
Finding Affordable Housing
Downsizing might be an appealing option in some situations but it certainly isn’t relevant to everyone. One alternative approach is looking into affordable housing. This is mostly relevant for people who rent, although the approach could also be relevant if you sell your house.
The term affordable housing refers to housing options that fit within your budget. In some cases, this may simply be budget accommodation but there are also a range of programs that provide affordable housing.
I’m not going to go into the various programs in depth here, as we have a full Guide to Affordable Housing Solutions which covers this topic in detail.
In general, affordable housing can be a powerful way of cutting down your living costs and saving money. However, it is important to note that many of these programs are designed for people on low income, so they may not be relevant for everyone.
Additionally, the United States is going through a housing crisis and there is a shortage of affordable housing on the market. This can make it much more difficult for people to find housing. In fact, you may end up waiting years to get into some programs and potentially even longer before you actually find affordable housing.
Nevertheless, this is an area that is worth checking out – and if you are in an emergency situation you may be able to find affordable housing sooner rather than later.
Final Thoughts
There plenty of money saving tips for seniors – and we’ve only covered some of them in this list.
One approach that you can take is to look at your own life and simply consider what things you truly need and what things you don’t. Many of us do have habits that end up costing us money and some of these can certainly be cut down or cut out.
Now, we’re not suggesting that you cut out everything that makes your life enjoyable. However, you can often find ways to make the same things less expensive or you may be able to find alternatives that are just as good.
Sometimes, it may just be a matter of trying out new things and different alternatives to see whether they work for you. After all, we all have a tendency to love particular habits, without realizing that other options may be just as enjoyable.
Before we close the discussion on money saving tips for seniors, there’s one more thing to discuss – do what works for you. Seriously, some of the ideas on this list will be much more relevant than others. Play around to find the best options for your situation and needs.
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