Avoid These Retirement Budget Pitfalls

Once you enter retirement, it’s likely that you’ll be living on a fixed monthly income. Hopefully years of sound financial planning will pay off, and you’ll enjoy a comfortable lifestyle once you stop working. But in almost every circumstance, we can fall prey to sneaky budget killers that really drain our bank accounts. Watch out for these retirement budget pitfalls, and enjoy a little more room in your monthly budget.

Credit card interest. It’s ideal to enter retirement without any debt hanging over your head, but for some of us this isn’t always possible. If you do have credit card debt, take control over it now. If you’re a longtime faithful customer, ask your credit card company for a reduction in your interest rate. If they won’t budge, look for a card with a 0 percent introductory rate on balance transfers, and transfer your balance. Pay as much as you can each month to reduce the amount you owe, and pull another credit card switcheroo at the end of the introductory period to keep enjoying 0 percent interest.

Maintenance fees. Even if you’ve used the same bank or credit card company for years, sometimes they will institute new account maintenance fees seemingly out of the blue. Always check your account statements carefully for these fees, and call to file a complaint if you find mystery charges. A local credit union is often the better, no-fee banking solution.

Subscriptions. You may have automatically renewed old subscriptions for years without even thinking about them, and meanwhile you’ve added a few more services over that time. The end result is often a slew of monthly subscriptions, half of which you don’t even use. Check to see if you can cut out some of these services, particularly be looking online for free entertainment options.

High utility bills. If you’ve used the same cable, satellite, phone or internet companies for years, you may not even be paying attention to the deals they’re offering new companies. Call to inquire about bundling your services, and consider dropping options you rarely use like extra channels or multiple phone lines.

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