Frugal Retirement: 10 Ways To Cut Costs and 5 Ways To Make Money Without Going Back to Work

Retirement is referred to as the “golden years” for a reason — it’s supposed to be the era of your life marked by financial freedom and security to pursue relaxation and fulfillment after a lifetime of work. Ideally, you have enough saved to live a life of leisure once your golden years begin.

However, due to high inflation and overall economic uncertainty, day-to-day life in America feels more expensive than ever — sometimes even a visit to the grocery store seems like it could break the bank. With that level of economic tumult in mind, it may benefit those 65 and up to consider a more frugal retirement than originally planned, one in which they work to both cut costs and create new income streams. With the future so uncertain, every possible financial safety net helps, from side hustles to selling your junk.

Here are 10 ways to cut costs and five ways to make money without unretiring.

If your children have grown up and moved out, or if you’re living the single life, downsizing to a smaller house can really help you save on property taxes, utility costs and upkeep. Or, even better, consider moving into a budget-appropriate apartment, especially if you can find one where utilities are covered.

Eating out at restaurants (or even cheaper fast-food joints) can really begin to rack up charges in your bank account. Cook at home, and save yourself a lot in terms of dining costs.

Once you commit to cooking more at home, make sure to meal plan in order to cut down on waste. Per the USDA, household food waste costs folks approximately $1,500 annually.

Once you’ve made the decision to cook more, and you’ve made your meal plans, try to buy your non-fresh food in bulk at stores like Aldi and Costco. Shopping in bulk at big-box wholesalers and warehouses usually comes with significant discounts and helps you save as you stock your pantry.

Now that you’re cooking at home, consider developing your own garden and growing your own vegetables — you’ll save considerably on groceries. Plus, it’s healthy!

If you have an extra car, you can sell it and save on gas and expensive annual registration and repair fees. Once you’re down to one car, consider saving even more by selling it, too — you’ll likely make a tidy profit, and you’ll be able to skirt continued registration fees and gas costs.

Once you have sold your car, take advantage of far cheaper public transit. Or, if you’re feeling fit (or want to get in better shape), consider riding a bike. After the one-time purchase of the bike, every ride is free.

Always be sure to give your insurance plan an annual evaluation by comparing it to other plans — you might find a provider with a far more affordable rate.

Similarly to giving your insurance plan an annual evaluation, always look over the regular monthly automatic charges that hit your bank account. You’ll likely be able to find a number of subscriptions and streaming platforms you don’t use or have forgotten about. Cancel them and save.

A number of services — like cell phone and internet plans — offer senior discounts, as do restaurants and other business. Always be sure to inquire — you may find new ways to save.

If you have a personal passion that drives you and constantly holds your interest, consider turning it into a revenue stream for yourself. For example, if you enjoy cooking, try baking and selling your wares at farmers markets. Enjoy painting, woodworking or design? Consider selling your artwork on Etsy.

If you happen to be a specialist in a certain technical or professional field, you could parlay that into additional income as a consultant in your retirement years. For instance, if you used to work as a teacher, consider serving as a paid tutor.

Further, if you spent a lifetime travelling, consider creating a subscription-only Substack offering up travel suggestions. Do you love to cook or bake? Think about making a YouTube cooking channel. The internet offers myriad ways to monetize your personal knowledge and beef up your bank account.

If you’re retired, active and find yourself with a lot of free time on your hands, consider running errands for others for a fee. If you’re a pet lover, perhaps you could walk dogs for extra cash. If you have a car, you could drive part time for a rideshare company or deliver groceries or food.

A person can accumulate a staggering amount of personal items over the course of a life, and often the things that were once prized possessions can end up becoming junk in a closet. Consider cleaning out your home and storage; you can easily hold a garage sale or unload a good deal of unnecessary (but valuable) items on eBay for cash.

If you’ve decided to keep your home and not downsize to an apartment, you can make a healthy passive income by renting out a bedroom; or, if you have a large or livable storage building in your backyard, that can be transitioned into a small apartment. Turn that unused space into a cash-generating opportunity.