8 Things To Cut From Your Budget Now If You’re Living on Just Social Security

The average monthly Social Security benefit amount was $1,877 as of November 2024. If you live with someone else who receives roughly the same amount, your combined monthly income would be around $3,700.

While this amount isn’t anything to scoff at, it might not be enough to cover everything you were paying for during your working years. Even if it is enough, you still might be better off lowering your expenses where you can to stretch your money further and potentially live more comfortably in retirement.

If you’re living on just Social Security, here are some things to consider cutting from your budget now.

Also see signs your Social Security might be enough to live on.

It’s OK to splurge a little every now and then; but, if you’re someone who frequently goes out to eat, now’s a good time to cut back.

“Preparing meals at home is not only healthier but significantly less expensive over time,” said Garret Smith, veteran financial advisor and CCO at Ascend Investment Partners.

You can still enjoy a meal out, but it should be the exception rather than the rule. Try to limit your dining out to once every few weeks or less. It’ll save you money and feel more like a treat when you actually do go out.

The average person spends $219 a month on paid streaming services to platforms like Netflix, Amazon Prime, Hulu and Disney+. Other paid services include music streaming services, gaming services and news subscriptions.

John F. Pace, partner at Pace & Associates CPAs, suggested looking over your entertainment budget carefully and seeing where you can cut back.

While you can keep one or two of your favorite streaming services, you might want to cancel the rest if your budget’s tight or you want to free up extra cash.

Entertainment can spice up your retirement life, but it can also be costly. Cutting out the more expensive forms of entertainment — including but not limited to those paid streaming services — can do wonders for your retirement budget.

“Addressing discretionary expenses can lead to meaningful savings,” said David Blain, chartered financial analyst (CFA) and CEO of BlueSky Wealth Advisors.

“[By] leveraging free or low-cost entertainment options, the amount saved can contribute significantly to covering essential expenses.”

Look into free community events or low-cost entertainment options instead. Alternatively, start a new hobby with minimal to no upfront costs. This can not only save you money but also expand your options during retirement — and keep you involved in the community.

Now, if you have a favorite brand of peanut butter or laundry detergent, you can keep that. But if you can’t tell the difference between a name-brand good and its generic counterpart, you might as well switch to whichever is cheaper.

“It’s not about compromising on nutrition or enjoyment of food but about shopping smarter,” Smith said.

Reassess your spending habits and opt for those generic brands instead.

You need somewhere to live during retirement, but that doesn’t mean you have to keep a home that’s draining your retirement income or savings. If you live in an expensive home or area, consider downsizing or relocating to an area with a lower cost of living.

“Personally, I’ve seen clients free up hundreds, sometimes thousands, of monthly expenses by making this one change,” Blain said. “The impact on their overall financial strategy is substantial, allowing for more freedom and less financial stress in their golden years.”

By switching to a less expensive home, you could also lower your property tax bill, home insurance premiums, maintenance, and yard work costs. Depending on your new home’s size and energy-efficiency, you could even cut down on expensive energy bills.

When you retire, you might not need all of those bundled services you once had. You might not even have needed them during your working years.

Regardless, if you have bundled services, ask yourself if you really need to keep them. This could be a plan that includes internet, phone and cable. Or it could be an insurance policy that includes auto insurance and home insurance.

If you don’t have a car, for example, you won’t need the auto insurance policy. And if you don’t watch TV, you won’t need cable.

Cutting out some of these bundled services can also simplify your retirement lifestyle. If you decide you still want to keep what you have, look for something less expensive to free up some cash.

“Often, individuals can adjust their plans to more cost-effective options without losing the essence of the service they need,” Pace said.

If you’ve retired and qualify for Medicare, you might not need to keep your other health insurance. Or you might be able to switch to a more cost-effective plan. This depends heavily on your needs, however.

“Exploring supplemental insurance options, comparing prescription plans, and utilizing preventive healthcare services can reduce out-of-pocket expenses,” Blain said. “My experience has shown that proactive healthcare management not only improves quality of life but also decreases the likelihood of incurring high medical costs down the road.”

If you don’t drive much now that you’re retired, now might be a good time to get rid of your personal vehicle. This can lower your monthly costs quite a bit, especially when you factor in things like mandatory inspections, registration fees, gas, and auto insurance.

You can also keep one vehicle but get rid of any extra your might have. That way, you’ll still have one in case you need it.

If you live in a big city, take advantage of public transportation, ridesharing services or carpooling.