Yahoo Finance 9 Frugal Living Tips Boomers Should Focus On in 2024
Born between 1946 and 1964, many boomers have already been retired for some time or are about to leave the workforce. But while retirement should be an exciting next step in life, many boomers are worried about their finances.
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This isn’t without reason. The cost of living goes up every year and, while the rate of inflation has leveled out, everyday goods and services still rose by 3.2% from July 2022 to July 2023. And unless the country experiences a rare period of deflation — when consumer prices fall — costs are likely to continue to rise in the coming years.
So, what can boomers do to ensure their future financial stability against rising prices? Here are some top frugal living tips to consider in 2024.
Start Working on That Retirement Plan
For boomers who don’t already have a retirement plan, now’s the time to make one. And for those who do have one, it might be worth reviewing it and making some changes to reflect your current — and projected — income, expenses and retirement benefits.
“Boomers are those who are about to be or already have been eligible to receive retirement benefits. Therefore, it’s necessary for them to create their budget and strategy,” said Andy Cooper, the financial analyst at CouponBirds.
Cooper also suggested that boomers should review their accounts and track their spending within their budget. At the same time, it’s good to have an emergency fund with at least six months’ worth of expenses saved up — or more if there are potential health concerns or other bills on the horizon.
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Find an Additional Income Source
Whether you’re already retired or thinking about retiring, you can boost your income with a part-time job or side gig. This can help combat any increased costs and make it easier to manage everyday or unexpected expenses.
“Stick to making money,” Cooper said. “40% of boomers agree with the statement that they have not done enough to save for retirement. So, it’s crucial to keep on earning and saving.”
There are many ways to earn a little extra money, such as by becoming a pet sitter on Rover or renting out a spare room in your house on Airbnb.
“You can [also] apply for a reverse mortgage,” Cooper said. “[With this,] the financial institution will pay you a certain amount of money on a monthly or yearly basis after the evaluation of your health condition and the value of your house.”
And if you’re in good health, you could always delay retirement by a few more years. Even though you can start collecting Social Security benefits as early as 62 years old, you won’t qualify for the maximum benefit until you’re at least 66, and 67 for some people. If you retire before the full retirement age, your benefit amount could be reduced by anywhere from 25% to 30%.
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Downsize Your Home
Many people downsize when they retire, and for good reason. Not only can it be a financially smart decision, but it can also reduce any stress or hassle that comes with owning a bigger home.
“Boomers should consider downsizing their homes,” said Carla Adams, founder and financial advisor at Ametrine Wealth. “Downsizing allows you not only to put cash towards investing from moving to a lower cost home, but [it] will also save on heat and electricity.”
Another advantage to downsizing in your 60s, Adams continued, is that you’re more likely to be healthy enough to do it on your own. This gives you more control over what you keep and what gets thrown out.
“Perhaps boomers will even find some things of value that they are willing to part with and can list for sale,” Adams said. This extra money could further help with combating costs or building a larger nest egg.
Use Those Senior Discounts
Another way to live more frugally is to use senior discounts whenever possible.
“Boomers can and should take advantage of senior discounts at any and every place that offers them, such as movie theaters, museums, and gyms, as well as some restaurants and retail stores,” Adams said. “Don’t be shy about asking places if they have senior discounts; the worst they can say is ‘no.'”
But don’t limit yourself to senior discounts only. Use apps and coupons that offer discounts, rebates, and other promos that lower costs.
Take Advantage of Free or Affordable Options
Living frugally doesn’t mean you have to miss out on fun or fulfilling opportunities. In fact, many communities offer free or affordable options to seniors.
“Create or join local community groups that focus on shared resources and services,” said Aleksey Krylov, a certified financial analyst and managing director at FTERA Advisors. “From tool libraries to community gardens, these initiatives not only foster a sense of belonging but also allow you to access items and services without the burden of ownership.”
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Save Money on Trips
Even if you’re trying to cut costs and save money, you can still take trips every now and again.
“For boomers who are retired, there are additional ways that they can save money, such as traveling during the week when plane tickets and hotel reservations are typically cheaper, and taking advantage of early-bird specials that may be more difficult for those who are working to take advantage of,” Adams said.
Find Ways To Cut Energy Costs
Energy bills can rack up, especially for those who have a larger home or live in an area with extreme heat or cold. For boomers who are trying to live more frugally, even small energy-saving measures can save money.
“Energy conservation doesn’t sound like much, but it adds up,” Cooper said. “Research from CouponBirds shows that a new energy-efficient air conditioner can help reduce annual electricity usage by up to 449 kWh or $71.84.”
“Smart power strips to wash and dry clothing during off-peak hours can save you $22.12 to $41.7 annually,” Cooper said. “An energy-saving dryer can reduce annual electricity usage by 70.2 kWh or $11.23.”
Grow Your Own Food
Both the cost of food at home and dining out have risen significantly over the years. Groceries increased by 1.7% from November 2022 to November 2023, while dining out prices rose by 5.3% during that same period.
Boomers who want to live more frugally and have some time on their hands could consider growing their own food to cut costs.
“Be a gardener,” Cooper said. “If you have enough time and space, you can save money by growing your garden. For instance, one $1.50 pepper plant or packet of tomato seeds can produce anywhere from six to 100 times the amount of produce for the same amount of money spent at the grocery store.”
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Cut Out Unnecessary Memberships or Subscriptions
Monthly subscriptions to things like streaming services, food delivery and more can add up. In 2022 — the most recent data available — the average cost of monthly subscriptions was $219 per household.
“Boomers, take a closer look at your subscriptions and memberships,” Krylov said. “Beyond the usual suspects like streaming services and gym memberships, examine professional organizations, alumni groups, or club memberships.”
Cutting out even a few of these subscriptions could easily save you $10, $20 or $50 — if not more. And if you don’t want to cancel certain memberships, see if you can negotiate costs to free up some cash.
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This article originally appeared on GOBankingRates.com: 9 Frugal Living Tips Boomers Should Focus On in 2024
