How to Reduce Retirement Expenses and Living Frugally on Retirement Income
How to Reduce Retirement Expenses: Let’s check ways to cut expenses in retired life and live well on less in retirement. There are six expenses that can be left to reduce and save little money in retirement.
- One, life insurance and disability insurance are not useful if there are no dependents after death.
- Second, high investment fees that many retirees pay expertise fees which are unnecessary.
- The third is property. In retirement, houses with high utility and maintenance costs make more to pay.
- Fourth is a landline phone connection which is unnecessary if you are using a cell phone.
- Fifth is the interest paid on debt that is impossible to repay in retirement.
- Sixth is the electronic appliance that is old and consumes more power.
Another idea to reduce expenses is to compare expenditure with the average amount of it that usually people spend. Apart from the above factors, below are factors where more and more money is spent without knowledge. Here we will discuss on how to reduce costs in retired life and live frugally on retirement income.
Living Frugally on Retirement Income
- Housing:
According to a survey, people spend $651 per month on mortgage payments, property taxes, and insurance who owned a home. The simple meaning is if a person is spending more on the mortgage at a younger age, saving for retirement is definitely less than others.
- Transportation:
As per one report, people spent $10,202 per year on car payments, insurance, gasoline, and maintenance who have an average of 2.4 vehicles. It is important to ask people if they need two cars even if not drive every day.
- Utilities:
Electricity is the costliest bill for households which carries an average cost of $122 per month. The second-largest bill is the telephone bill costs nearly $95 per month. In short, overall people spend an average of $4,025 on gas, electricity, phones, and water.
- Entertainment:
People spend more on the internet, pets, tickets, picnics, internet, cable TV, and admissions more than $3600 per year. In retirement, cut this cost by not spending much every month.
- Healthcare:
Many people complain that their health care costs are very high but when there was a survey, surprisingly it was an average of $394 per month and this is really not a high cost. This amount is not sufficient to cover a Medicare supplement for two people older than 65.
- Household furnishing and equipment:
Most people would have bought all the furniture they need and it is a must to replace inefficient appliances. The average expenditure is $2,092.
- Food:
Another thing that cost $3,913 spent eating at home and $2,859 spent dining out. After retirement, people should eat healthy food at home and not outside. Read more articles on rozyjos.
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