9 Ways Frugal Retirees Spend Their Social Security Checks
Written by
Caitlyn Moorhead
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Living frugally doesn’t mean you have to be cheap throughout all 20 years of retirement. On the contrary, truly frugal retirees know that finding small ways to save money leaves you with a nice cushion to better spend your retirement funds on things you want.
With rising cost of living and Social Security benefits always seemingly on the brink of peril, it’s good to know where you can skimp and where you can splurge. As of January 2025, the average monthly Social Security benefit is $1,976. However, this amount can vary significantly from person to person, depending on factors such as the age at retirement and the sum of Social Security contributions made throughout a career.Â
With this modest sum, frugal retirees have mastered the skill of stretching their dollars to cover their needs and even some wants. Here are nine ways they manage to do just that.
Live Within Your Housing Needs
For many frugal retirees, the first step in managing their retirement funds wisely is to ensure they have a comfortable, yet affordable place to live. Living beneath your means doesn’t mean you have to sacrifice your creature comforts.
Instead, choosing to downsize to smaller homes or apartments in order to reduce living expenses such as utilities, maintenance and property taxes can be a great money move. Others opt for senior living communities that offer a fixed cost that includes many living expenses, making budgeting more straightforward.
Grocery Shop Smarter, Not Financially Harder
Frugal retirees know that food expenses can quickly add up. But making a grocery list and sticking to it can help retirees avoid impulse shopping or overspending.
Frugal retirees often plan their meals, use coupons, shop for sales and buy in bulk when it makes sense. Cooking at home is a common practice, as it’s much cheaper than dining out. Many also participate in senior discount programs offered by grocery stores or use apps to find the best deals.
Take Care of Your Healthcare
Healthcare can be one of the biggest expenses in retirement. Wise retirees use their Social Security checks to enroll in Medicare and supplemental insurance to cover gaps.
These frugal retirees also take advantage of preventive care services, which are often covered at 100%, and manage prescription costs through generic options or pharmacy discount programs.
Cut Down on Car Costs
Without the daily commute to work, retirees can save significantly on transportation. Many sell one of their vehicles or switch to a more fuel-efficient car. The last thing you need to worry about is paying too much at the pump or having to repair a car you barely use.
Public transportation, senior discounts on fares and carpooling are also ways to cut costs. Some even take this opportunity to embrace a more active lifestyle by walking or biking whenever possible.
Enjoy Free Entertainment
Retirement is the perfect time to enjoy life’s pleasures, and frugal retirees know how to do this without breaking the bank. They frequent free concerts, museums with no admission fee days, community events and public parks. Libraries are a goldmine for free entertainment, offering not just books but also movies, magazines and access to digital resources.
Travel More When You Save More
As you have nothing but free time in your retirement, the luxury of travel is a common goal for seniors. Frugal retirees make it happen by traveling during the off-season, taking advantage of senior discounts and using reward points for flights and hotels. They often prefer experiences over luxury because the more you save per trip, the more trips you can take.
Invest in Experiences Over Things
Happiness doesn’t come from material possessions, regardless of whether money can or cannot buy it. Financially savvy seniors prefer to spend their money on experiences that create memories.
Whether it’s attending a local workshop, joining a community garden or volunteering, these activities not only enrich their lives but often come with little to no cost.
Get Help With Financial Management
Last but not least, managing their finances wisely is crucial for retirees living on a fixed income. They keep a close eye on their expenses, budget carefully and often set aside a small emergency fund to cover unexpected costs. Some even continue to invest a portion of their Social Security checks, focusing on low-risk investments to ensure their savings continue to grow.
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