6 Ways to Make the Most of Your Retirement Income

Most retirees live on a fixed income, and most retirees also worry about whether this income will be sufficient to cover their living expenses. If increasing your income with a part-time job is not an option, your other option is to reduce your expenses. Remember these six ways to make the most of your retirement income. If you can, start using them now before you retire.

Track your budget. We all waste money, but seeing it in black and white can be a real wake-up call. Write down every purchase you make for two months, and then review this record to discover how much money you’re really spending on unnecessary purchases. This step alone should help you regain control over your budget.

Spend less on health care. Many retirees report that health care expenses comprise a large part of their budgets. However, one of your most variable expenses may be prescription medications. Speak to your doctor about switching to less expensive drugs; you would be amazed at how similar drugs can carry completely different price tags. Some Medicare supplemental plans can also help reduce the cost of medications.

If you’re still preparing for retirement, keep in mind that preventing health problems is much less expensive than curing them! Take care of your health now, and you can prevent or delay the onset of many common health problems in retirement.

Go green to cut your utility bills. It will require a small investment upfront, but reducing your energy usage will translate into big savings on your utility bills. Switch to energy efficient lightbulbs, winterize your home, replace old appliances with energy efficient ones, and install water saving devices on your showers and toilets.

Get out of debt. Pay down your debt before you retire. You may need to look into options such as a debt consolidation loan or refinancing your home.

Tap into the power of technology. On the internet, you can learn just about anything you want to know. Follow a few budgeting and frugal lifestyle blogs onlines for more creative money-saving tips.

Take advantage of free resources in your community. During your working years, you rarely had time to go to the library or notice all of the free resources in your community. Once you retire, remember to rent books and movies from your library rather than paying for them. Check bulletin boards or your local newspaper for other resources for seniors, such as food banks, free classes, and help with your utility bills.

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