14 Frugal Habits To Stretch Your Social Security Check in the New Year
Written by
Angela Mae
Edited by
Amen Oyiboke
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According to the Social Security Administration, the average person receives $1,710.78 a month in Social Security benefits. Even if you double this to include a spouse or partner you split the bills with, this doesn’t go quite as far as it used to. That’s why it’s so important to find ways to reduce your spending and maximize your money.
One of the best ways to do this is to adopt a more frugal lifestyle. While this can be tough at first, a little bit of challenge can be a good thing — especially when it leads to long-term financial stability and cuts down on financial stress. And with 2024 only a couple of weeks away, now’s the time to start making some money resolutions for yourself and your household.
Whether you’re writing your New Year’s resolutions, or you just want to improve your financial situation, here are some frugal habits to stretch your Social Security check in 2024.
Reuse or Recycle Items
Check around your house to see if you have anything you can either reuse, repurpose, or recycle. Depending on what you find, you could save money next year by not having to buy these things anew.
For example, instead of buying cleaning cloths, convert old clothes or towels into rags. Instead of buying multiple plastic water bottles, see if you can clean out your current ones and reuse them once or twice.
Even small things like these can cut down on costs and save you money.
Don’t Drive
Driving is convenient when you have to commute to and from work every day. But if you find yourself living a quiet lifestyle during retirement, you might not need to keep a car around. This is especially true if you live in an urban area with great public transportation.
“Find alternatives to driving,” suggested Laura Sterling, VP of Marketing at Georgia’s Own Credit Union. “This can include public transportation, walking, or riding a bike. If a car is a necessity, opt for a fuel-efficient car. This can include an electric vehicle, hybrid, or a car with good gas mileage.”
Choose Cheap or Local Entertainment
Many towns, even small ones, offer free or inexpensive local events or entertainment. This could be things like free admission to a museum or music festival. Or it could be a low-cost exhibit, show, or fair downtown.
Whatever the case may be, you can cut costs and stretch your Social Security check further by taking advantage of what your city has to offer. And be open to new types of entertainment and activities. You might find something that you never thought you’d enjoy.
Negotiate Insurance Policies and Pay For What You Need
Many people have insurance plans that they don’t need or use. Review the different types of insurance you do have and see if you can cancel any of them. For example, if you no longer drive or own a car, you shouldn’t be paying car insurance.
While you’re at it, try to negotiate with your insurance provider to lower your monthly costs.
“Compare insurance costs and consider an independent insurance agent,” said Sterling. “This could save you hundreds of dollars each year. Practicing safe driving can also help with insurance premiums.”
Downsize Your Home
If you own your own home, downsizing could save you time and money.
Ask yourself whether you need or even want to live in your home anymore. If you don’t, you could sell it and buy something cheaper. And if you get a smaller home, you could also save money on home maintenance or utility bills. Plus, a smaller house means less cleaning time.
Declutter Your Home
Decluttering your home is a great way to get organized. Go through each room of your house and see which items you no longer need or want. You’d be surprised at how much potential value you have lying around in a closet, cupboard, or box.
If you sell some of these items, you could also earn a little extra money to supplement your Social Security check. Even if you don’t want to sell anything, decluttering your home can give you a better idea of what you have and keep you from accidentally buying duplicates of those things.
Pay Only In Cash
It’s easy to overspend when you rely on credit or debit cards, so switch to a cash-only budgeting system.
“Using cash only forces you to stick to a budget and see what you are spending,” said Sterling. “It also forces you to make in-person purchases, which helps eliminate online impulse shopping.”
Dr. Kate Mielitz, an accredited financial counselor and AFC® program manager for Beyond Finance, added, “Pay cash; do not use Buy Now, Pay Later or credit.”
Make a Frugal Budget
Another way to stretch out your Social Security check is to create a thoughtful, frugal budget. This might involve cutting out some of those unnecessary household expenses — like monthly subscriptions to streaming services. It might also mean cooking more meals at home and eating out less.
Even small changes to your spending habits can help improve your overall financial situation.
Make Lists and Use Discounts
You’re more likely to overspend when you don’t have a list, so create one whenever you go shopping. While you’re at it, try to plan your shopping trips around current sales or promotions to save even more money.
“To keep grocery costs down, make a list and stick to it,” said Sterling. “Make sure you are taking advantage of coupons, store discounts, and store rewards programs. Purchase generic brands when possible — you will find they are often made by the company producing the name brand!”
Consider Your Healthcare Costs
Managing healthcare costs is one of the biggest challenges people on Social Security face, but there are some things you can do to minimize your expenses.
“For healthcare, you may need to sit down with a Medicare specialist to make sure you have the right supplemental program,” said Jay Zigmont, Ph.D., CFP®, founder of Childfree Wealth. “Each year, your medical issues change, so you need to look at your coverage each year.”
Get Shared Housing
If the cost of living is too high for you, consider getting a roommate to split the costs.
“Some communities now have formal programs to connect seniors with younger people as roommates,” said Zigmont. “Sharing housing with a younger person may provide both a cost savings and a support system, especially if you are still living in a house with multiple bedrooms.”
Look Into Senior Discounts and Programs
It’s okay to dine out or attend paid events every now and then. But if you’re trying to cut costs, you might want to look into senior discounts. Even if there aren’t any listed discounts, you can still ask if the venue has any.
“You also should see what senior programs are available to you in your community,” said Zigmont. “Many states have a single application that will help you to identify what you may qualify for. You may be able to get food and fuel assistance, or even housing assistance.”
Set Clear Expectations With Loved Ones
Telling your loved ones you can’t afford something might not be easy, but it might be necessary if you’re living more frugally on your Social Security check.
“Be honest with yourself and set expectations with friends and family,” said Mielitz. “Yes, it’s hard, and uncomfortable, to say, ‘I can’t afford it,’ but it pays off when you have money in your account at the end of the pay period.”
Buy Used or Generic
If you need to buy something, like a winter coat, consider getting a gently-used or off-brand version of it. You can still get what you need from places like thrift stores or discount retailers without hurting your budget.
Similarly, look into online or local groups that give away free or discounted items. Often referred to as “buy nothing” groups, they usually include locals who are simply trying to get rid of their unwanted or unused items. Participating in such a group helps both you and them out.
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