Clever Money-Saving-Tips

Clever Ways Seniors Can Save Money Without Feeling a Pinch

For many seniors (and younger people, too), money concerns are an ongoing issue. Rising costs and incomes that are fixed, or that don’t seem to increase as much as expenses do, put a strain on budgets and peace of mind. But worrying doesn’t save money. To reduce your expenses, you need to take action.

Fortunately, there are plenty of easy and practical strategies you can take to stretch your budget and save hundreds of even thousands of dollars a year and help you avoid running out of money in retirement.

Here’s are more than two dozen money-saving tips to cut costs without depriving yourself of things you like and use.

Join a Wholesale Club

You don’t need a large family to benefit from the savings offered by wholesale clubs like Costco, Sam’s Club, or BJ’s Wholesale. The upfront membership fee may seem daunting (Costco’s basic membership is $65 per year), but the discounts on everyday items, from groceries to travel deals, can easily offset the cost.

Money-saving tips for wholesale club shopping:

• Perishables: Divide large-size perishables into smaller, single-use quantities and freeze the portions you aren’t going to use right away.
• Groceries: Buying bulk staples like rice, canned goods, and cleaning supplies can save you up to $500 annually.
• Fuel: Many wholesale clubs offer gas at prices 10–15% lower than regular gas stations, potentially saving $200–$300 per year if you drive frequently.
• Travel Perks: Vacation packages, cruises, car rentals, and other travel services are sometimes less expensive when booked through a warehouse club.
•  Gift Cards: Warehouse clubs sometimes sell gift cards to restaurants and other establishments 10 to 20 percent less than the face value. Save money by purchasing them for your own use if they’re available for a restaurant or other an establishment you frequent.

Negotiate or Cancel Subscriptions

Streaming services, cable TV, and magazine subscriptions can quietly drain your budget, especially when introductory rates expire, and prices jump. Many companies are willing to lower your rate if you call and threaten to cancel. In fact, some have “customer retention specialists” whose primary job is to keep people from canceling their accounts.

Subscription money-savers:

• Streaming Services: Bundling subscriptions (e.g., Disney+, Hulu) for instance can save about $13–$22 month compared to subscribing individually. The exact savings depends on current promotions and what you choose to bundle.
• Cable TV and Internet: Switching to a streaming service or renegotiating your cable package can cut your bill by $50–$100/month. You may be able to save on Internet and phone services, as well. I recently saved close to $70 a month on a proposed Internet and VOIP phone increase. 
• Magazines: Cancel unnecessary subscriptions or use free alternatives. Some magazines can be read for free on the web. Or, join your local public library and use their app for magazines and other materials.
• Newspaper home delivery: I, for one, like reading a print edition of my local newspaper with my coffee every morning. But I don’t like it when they have price increases twice a year and try to raise my subscription $4 or more dollars a week. So, when I get a notice of a price increase, I look up the latest new-subscriber offer the paper has out. Then, I call and ask for that rate. While I’ve never gotten the paper to give me the new subscriber rate, I have gotten them to keep the increase to just a few cents a week instead of $4 per week. That adds up to about $200 in savings each year.

Embrace Grocery Store Apps and Loyalty Programs

Most major grocery chains now offer loyalty programs and apps with digital coupons and rewards. Signing up and digitally “clipping” coupons can lead to significant discounts on items you already buy. All without cluttering up your purse or car glove compartment with paper coupons.

Plus, you don’t have to remember to bring the coupons with you. The digital coupons will stay on your device for as long as they’re valid.

An added bonus: You may also earn points that can be redeemed for cash off your future purchases.

Ways you save with store loyalty apps:

• Weekly Discounts: Look for store-specific coupons or discounts on staples like eggs, bread, and produce. You could save $20–$40/month.
• Cash-Back Rewards: Some programs, like Kroger’s, offer fuel points that reduce gas costs by $0.10–$0.50 per gallon. Other, like Stop and Shop, have cash back rewards that you can apply to your grocery purchases. (The cash back is on top of whatever you save using digital coupons.)

Estimated Annual Savings: $400–$600

Cut Energy Costs at Home

Simple adjustments to your energy usage can save you hundreds each year. By being mindful of energy consumption, you not only reduce your bills but also help the environment.

Energy money-saving tips:

• Smart Thermostats: Installing a programmable thermostat like Nest or Ecobee can reduce heating and cooling costs by up to 15%, saving $150 to $300 annually depending on your location and the temperature ranges you set.
• LED Lighting: Replacing traditional bulbs with LEDs can cut lighting costs by 75%. For an average household, this could save $225 a year according to the US Department of Energy.
• Off-Peak Usage: Run appliances like dishwashers and washing machines during off-peak hours for reduced electricity rates.

Estimated Annual Savings: $300–$500

Downsize or Optimize Your Living Space

If you’re living in a large home and find yourself with unused rooms, consider whether downsizing could reduce your expenses. Alternatively, you may be able to rent out unused space to generate income. Before doing so, check with your city or town regulations to find out if you are allowed to rent unused space and if you need permits to do so.

Living Space Cost-Savers

• Downsizing: Moving to a smaller home can cut property taxes, insurance, and utility bills by 30–50%, saving $5,000+ annually depending on your location.
  • Note: If you’re planning to sell your current home, remember that there will be real estate agent fees and other costs to pay that will reduce your proceeds from the sale. You’ll also incur moving and other expenses to move to a new location. Be sure to calculate all those costs in making your decision.
• Renting: If downsizing isn’t for you, renting a spare room or listing a property on Airbnb can generate $500–$1,000/month.

Estimated Annual Savings: $6,000+ (if downsizing or renting)

Shop Smart for Insurance

Insurance premiums for home, auto, and health often increase with age, but you don’t have to settle for high rates. Comparing policies and negotiating can yield substantial savings.

Money-saving insurance tips:

• Auto Insurance: Request discounts for low mileage, bundling policies, or completing a defensive driving course (savings of $100–$300/year).
• Home Insurance: Shop around annually for better rates or consider raising your deductible to lower premiums, saving $200–$400/year.
• Bundle Home and Auto Insurance: Bundling insurance means getting multiple policies from the same insurer. Depending on the types of policies you’re bundling and the insurance company you use, you could save between 5 to 25 percent on premiums. According to Bankrate, Allstate, Farmers, Nationwide, State Farm and Travelers offered the best bundling deals in 2024.
• Health Insurance: Review your Medicare plan annually to ensure you’re not overpaying for coverage you don’t need. Switching plans could save $500+ annually. But before you switch plans, be sure your doctors accept it.
• Medication costs: Review your Part D or Medicare Advantage plan notice of change each year to see if your pharmacy is still on their list of recommended pharmacies. If not, look for a pharmacy that is and have your prescriptions moved. Check for changes in medication coverages, too. If your medications will no longer be covered, or the cost will go up, ask your doctor about alternative medications.
• Reevalutate Life Insurance Needs: With fewer family obligations in your senior years and, life insurance may be something you no longer need. Here are some things to consider when trying to decide “Do I still need life insurance?”

Estimated Annual Savings: $800–$1,200

Related content: How to save money on medication costs

Leverage Senior and Veterans’ Discounts

Many retailers, restaurants, and service providers offer discounts for those aged 55 and up. These savings can add up quickly if you know where to look.

How to save with senior and veteran’s discounts:

• Retail Stores: Many retail stores give senior discounts. A few well-known names:  Kohl’s offers 15% off every Wednesday, while Walgreens has a 20% discount for seniors on select days. Michael’s offers a 10% senior discount to anyone 55 and older.
• Restaurants: Chains like Denny’s, IHOP, and Applebee’s have senior menus or discounts of up to 15%. Small local establishments may not advertise senior or veteran’s discounts but will offer them when asked.

• Travel Discounts: Organizations like AARP offer exclusive deals on flights, hotels, and car rentals.
• Service Providers: Local service providers such as a roofers, heating and cooling companies, appliance repair services usually don’t advertise senior discounts. But it’s worth asking for one, anyway. Some of these service providers will give you a discount if you ask. But wait until after they’ve quoted you a price to ask for a senior discount.
• Ask for a Veteran’s Discount: Some places that don’t offer senior discounts do have discounts for active military and veterans.

Estimated Annual Savings: $200–$500 or more

Tip: sign up for AARP.  AARP membership cost $12 a year and entitles you to discounts at many facilities including some restaurants, hotels, car rental services and more.  You get a second free membership for anyone in your household when you join.

Cook More, Eat Out Less, Pickup Take-Out Yourself

Restaurant meals are a major expense for many households. By cooking at home, you can save a significant amount without sacrificing flavor or variety.

Food Savings:

• Meal Planning: Reducing impulse grocery buys and preparing meals at home can cut food costs by 20–30%. An added bonus: Your homemade meals may be healthier to eat than restaurant food.
• Try store brands instead of name brands. Often they taste the same or better, and cost less.
• Batch Cooking: Preparing large portions and freezing leftovers reduces food waste and saves time. This could save $50–$100/month.
• Look for Restaurant Special Promotions: You can save on restaurant meals by keeping track of your favorite establishments’ special promotions. Pasta night, buy one meal/get one half price, price fixed specials, early bird discounts and other deals can result in significant savings when you eat out.
• Ditch the Food Delivery App: If you want takeout, and you’re physically able to do so, go pick up the food yourself. You’ll save the service fee and the delivery fee. Depending on your location and order that might be as much as $10 a delivery!
• Special Occasions: Reserve dining out for special occasions, saving $50–$200/month.

Estimated Annual Savings: $1,200–$2,000

Reevaluate Entertainment Expenses

Entertainment doesn’t have to cost a fortune. Replacing high-cost activities with budget-friendly alternatives can keep you active and social without breaking the bank.

How to save on entertainment costs:

• Community Events: Attend free local events like concerts, lectures, or outdoor festivals instead of pricey outings. Watch your local newspapers for times and dates.
• Stay Local. It’s exciting to go into a big city to attend a concert, play, art show or other event. But you can save a significant amount of money by going to local shows and events instead. Local event tickets may be significantly less expensive for better seats, and chances are, you’ll save on transportation and/or parking costs.
  
  If you plan to dine out before or after the event, local restaurant costs may be lower than prices in the city, too.  One more bonus: You’ll be supporting  local artists, actors, and your local economy. 
• Estimated Annual Savings: $600–$1,000

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Final Thoughts

Saving money after 55 doesn’t mean sacrificing your quality of life. By making small, intentional changes in how you spend, you can enjoy more financial freedom and less stress. Each of the strategies outlined above can contribute to significant annual savings, often totaling $5,000–$10,000 or more. Start with one or two tips, and watch the savings add up over time.

Remember, every dollar you save brings you closer to financial peace of mind in your golden years. Happy saving!