8 Expenses That Can Kill Your Retirement — Should You Ditch Them ASAP?
Written by
Gina Hagler
Edited by
Ashleigh Ray
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If you’re a retiree, your main financial goal is likely optimizing your funds to provide yourself with the most money possible to spend on the things you want. In other words, enjoying your post-career life without running into money troubles.
To help you enjoy a financially secure retirement — or if you just want to update your budget — here is a list of expenses you can consider ditching.
Streaming Services
These monthly subscriptions add up, particularly when you’re signed up for several of them. Disney+, Amazon Prime Video, Netflix, Hulu, Peacock, Max, Paramount — the list goes on and on. And maybe you really only use one or two of them. You could save well over $50 each month by canceling the rest — especially since many of them have been increasing their costs.
Life Insurance
It may be time to reevaluate your life insurance. You may no longer have dependents, so you can save money with a policy change that carries lower premiums. A financial advisor can help find the best plan for you.
Overpriced Luxury Items
Practically speaking, you’ve probably been avoiding high-end purchases you didn’t really need. While retirement might seem like the time when you can finally go out and buy all types of stuff you missed out on, you’re better off sticking with more affordable options.
This also goes for the newest tech. Whether it’s a computer, TV, phone or refrigerator, the newest releases are the most expensive — either wait or opt for an older model. An older one might still be a grand improvement over your previous tech.
Risky Investments
This is not a time for risk. If you’re continuing to invest, keep it to the safest options, like high-yield savings accounts, Treasury bills and Treasury inflation-protected securities (TIPS).
Debt
Don’t allow your debt to continue accruing interest. You’ll want to make sure your student loans, credit cards and other substantial sources of debt are taken care of. Additionally, you don’t want to take out any new loans that could lead to debt.
Vacations
It’s important here to temper your ambition — visits to Paris, London, Milan, Lucerne and the hundreds of other cities that serve as popular tourist destinations aren’t cheap and certainly add up. It may be worth your time (and savings), to find less expensive alternatives. Additionally, when you travel, use points you’ve accrued whenever possible.
Fraud
Elder fraud is a terrible but common scam practice. Be wary of offers that seem too good to be true and remember you can Google a company or product name to easily find out if they’re legitimate. Never provide your passwords or Social Security, bank account, debit/credit cards and/or other sensitive information to potential scammers and unknown entities.
Be Mindful of Your Medical Expenses
It’s important to remember that with age comes the potential for dental, vision, hearing and other problems. These are a natural part of the aging process and can affect people even if they’re healthy. You’ll want to be sure, however, to explore insurance options that will best provide for you without breaking you financially.
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