15 Ways to Slash Spending in Retirement

[Onward]

This is from Business Week via Yahoo Finance. Nothing earth-shattering, but a good summary.

fifteen-ways-to-slash-spending-in-retirement: Personal Finance News from Yahoo! Finance

 

[skyvue]

Yeah, saw that this morning on Yahoo. Was disappointed in there not being any more insight than what they pointed out. I guess the intended audience of the article is for those who have not yet thought about it enough to be on this forum.

 

[Bestwifeever]

Thanks, Onward.

Take advantage of the early bird special--who'dathunkit?

I do agree with the "don't wait to sell your house" tip, especially if you bought it several years before the "buy high" day and your retirement plans had that component to them. I'm sure it will be painful for us in many ways when we put ours on the market next year, but we'll still do it.

 

[W2R]

I am already following some of the 15 tips, but not others. For example, I am not trying to minimize the cost of food and I still eat at the same restaurants.

Following our usual Early Retirement Forum wisdom, I tracked my expenses during my last few years of work and my estimate of what I would need in retirement was based on that, after some adjustments for those expenses that might be less (or more) in retirement.

I had assumed that due to boredom, I would want to spend about $500/month more in retirement on hobby materials or other purchases and that hasn't happened.

In fact, I have been so happy that so far I have been spending only about 83% of what I spent while working. (This is not counting my new car, which I had planned for purchase in 2010 ten years ago).

The article looks like a good checklist for those who are having trouble making ends meet in retirement and I think it provides some good ideas.

 

[audreyh1]

All this is assuming, of course, that you actually need to slash your expenses in retirement.

We did go down to one car though - that was a good move.

Audrey

P.S. I never expect much depth out of these financial/frugal advice articles. They are usually written by someone who is not actually walking the walk.

 

[vicente solano]

All this is assuming, of course, that you actually need to slash your expenses in retirement.

We did go down to one car though - that was a good move.

Audrey

P.S. I never expect much depth out of these financial/frugal advice articles. They are usually written by someone who is not actually walking the walk.

I totally agree.

 

[Moemg]

I do agree with the "don't wait to sell your house" tip, especially if you bought it several years before the "buy high" day and your retirement plans had that component to them. I'm sure it will be painful for us in many ways when we put ours on the market next year, but we'll still do it.

I am heading this way myself . I was trying to wait out the downturn but now it looks like there is no end in sight so at some point I'll bite the bullet and just list my house . Probably early next year , Florida still has so many foreclosures dragging down the market . I want to sell my house not give it away .

 

[bbbamI]

It would be a major pain in the tookus if we had just one vehicle now. Maybe in ten years or so that won't be the case...

 

[W2R]

We'll probably put our houses on the market early next year, too.

We would put our houses on the market immediately, but the house next door to Frank's house went on the market recently for a ridiculously low price. So, our timing pretty much depends on if/when that house sells.

If it sells quickly (which is unlikely here, even with the ridiculously low price), then we might even put our houses on the market this year. But forget the end of the year, due to the holidays. My best guess would be early next year, but this could happen any time from this summer to never.

I'd like it if we could sell them and move before early next year, and get on with our lives. Oh well. What a PITA. Mostly I just want to be in a house where I plan to live for at least five more years, so I can make changes and renovate without worrying too much about return on the investment.

 

[calmloki]

We'll probably put our houses on the market early next year, too.

We would put our houses on the market immediately, but the house next door to Frank's house went on the market recently for a ridiculously low price. So, our timing pretty much depends on if/when that house sells.

...

Sure you are considering the effect of the Obamabucks due to disappear April 30 i believe. That $6.5 to $8k incentive for buyers can have a major effect on home value/purchase-ability. Might be the market won't go up that amount over the course of the coming year.... I've been looking and thinking of declaring new residence to take advantage, but there will probably be a drop in home values of oh - 6.5-8K after expiration of the incentive, and no need to declare new residence. Plus we're looking in the hotland of America, so summers a good shopping time....

 

[W2R]

Sure you are considering the effect of the Obamabucks due to disappear April 30 i believe. That $6.5 to $8k incentive for buyers can have a major effect on home value/purchase-ability. Might be the market won't go up that amount over the course of the coming year....

Might be? If I had to guess, it would be that the market may go down, not up even a penny in this location over the coming year and that is without even considering the cancellation of the incentives. This is one more reason why we may end up never getting out of here. Well, at least I think that when I am thinking negatively. (On the other hand, we are perfectly fine where we are for the time being.)

I've been looking and thinking of declaring new residence to take advantage, but there will probably be a drop in home values of oh - 6.5-8K after expiration of the incentive, and no need to declare new residence. Plus we're looking in the hotland of America, so summers a good shopping time....

I'd love to be buying but there is no way we could expect to put our present homes in escrow before April 30th. Maybe the tax credit for buyers will be extended. It is too much time pressure for us to even consider, as it is.

 

[WhoDaresWins]

I am taking a good hard look at some of the fees associated with my funds. I know I can do better moving most stuff to VG.

 

[Bestwifeever]

I am heading this way myself . I was trying to wait out the downturn but now it looks like there is no end in sight so at some point I'll bite the bullet and just list my house . Probably early next year , Florida still has so many foreclosures dragging down the market . I want to sell my house not give it away .

We should all just trade houses next year

 

[Moemg]

We should all just trade houses next year

I'm not trading for any houses that come with snowblowers !

 

[Stevewc]

I did find what I think will be a small nugget in the list of things to cut.
I'm going to call my auto insurance agent.
I'm driving a lot less miles now, so maybe they will give me a discount.
I remember the agent asking about the distance of my commute when I bought my car. I live in the burbs and drove about 50 miles a day when working. Now its a rare trip here and there and a few runs to the local stores.
We will see,
Steve

 

[Khan]

I did find what I think will be a small nugget in the list of things to cut.
I'm going to call my auto insurance agent.
I'm driving a lot less miles now, so maybe they will give me a discount.
I remember the agent asking about the distance of my commute when I bought my car. I live in the burbs and drove about 50 miles a day when working. Now its a rare trip here and there and a few runs to the local stores.
We will see,
Steve

My auto insurance went down when I told them I was retired.

 

[FreqFlyer]

In fact, I have been so happy that so far I have been spending only about 83% of what I spent while working. (This is not counting my new car, which I had planned for purchase in 2010 ten years ago).

Someone who plans their car purchase 10 years out. I love it!

I bought my last car when I turned 30. Now I'm thinking of treating myself to another when I turn 40 in another 2 years. Not that I haven't been shopping for another one recently.. just too cheap to pull the trigger

 

[Stevewc]

My auto insurance went down when I told them I was retired.

I've been so busy enjoying my freedom, it hadn't crossed my mind until I read the article.
I'll give my agent a call. My car spends a lot more hours in the garage these days and I'm loving it.
Steve

 

[W2R]

Someone who plans their car purchase 10 years out. I love it!

I bought my last car when I turned 30. Now I'm thinking of treating myself to another when I turn 40 in another 2 years. Not that I haven't been shopping for another one recently.. just too cheap to pull the trigger

Now that you mention it, I suppose most people don't plan that far out. I would not have done that, except that it was part of my retirement plan which I had just started 10 years ago.

Ten years ago I bought my Camry Solara because my prior car was just hopeless and causing me to be late to work more days than not. My credit was abysmal and I didn't have a prayer of obtaining financing, so in my desperation to pay for it I actually took money from my retirement account from a previous job and took the hit on taxes and/or penalty for doing that. (Log that under "Stupid Things That I Have Done".)

Anyway, having been in that desperate of a situation trying to get the Solara, and since I was just starting my financial planning, I decided to plan to buy a new one in 10 years when I retired. That was a goal, and I was just hoping the Solara would last that long. Luckily, it did.

 

[NW-Bound]

Now that you mention it, I suppose most people don't plan that far out. I would not have done that, except that it was part of my retirement plan which I had just started 10 years ago...

Wow! I never plan that far ahead on a car purchase. I did not even have a plan for retirement. I just did not want to go back to full-time work after a venture failure. Semi-retirement just happened. Life is full of the unexpected, and I am tired of making plans.

 

[CuppaJoe]

All this is assuming, of course, that you actually need to slash your expenses in retirement.
....

Audrey, good one, your posts are often inspirational!
I'm making an effort this year to come closer to spending my full percentage. There is no point or need in being too frugal. I'm training myself to admit, "yes, I can afford that."

 

[Walt34]

I'm not trading for any houses that come with snowblowers !

Well, I guess that takes our house out of your market...

 

[happy2bretired]

I'm not trading for any houses that come with snowblowers !

I don't have a snowblower any more? Wanta trade?

 

[unclemick]

Audrey, good one, your posts are often inspirational!
I'm making an effort this year to come closer to spending my full percentage. There is no point or need in being too frugal. I'm training myself to admit, "yes, I can afford that."

Yep - sometimes training is hard. 16 yrs of ER - sometimes fun spending can be painful.

Paradim wise.

heh heh heh -

 

[Moemg]

Well, I guess that takes our house out of your market...

Yes , Here is my backyard ! No snowblower needed only a boat !