Once you retire, your expenses, income and the budget take on a whole new dynamic. You are no longer receiving a full-time paycheck, and more times than not, the income you are receiving is only a fraction of what you were accustomed to before. If your income is cut, and you are still incurring the same expenses, consider reducing your costs and expenses. One way to do this is to sell your home and move into an apartment. Not only will this cut costs but it will also save you the trouble of having to keep up with the maintenance of your property, including cutting the grass, repairing broken items in the home. No longer will you have to paint and fix up all the different things that can go wrong in a home. Therefore you are cutting costs and saving money and time. Another good thing is if there is equity in your home you will now be able to cash in when you sell and put this money in the bank. Perhaps you can put some in a savings account and some into some type of vehicle that will draw interest.
After you sell your home you may consider moving into low cost housing. A lot of times you will find that this type of housing is available for senior citizens.
Another way to cut back on expenses is too make a budget and see exactly where all your money is going. Once you find out you can cut back on the various items that you are overspending on. Now is the time to cut back on spending for your wardrobe. Since you are retired you will probably no longer need to have nice polished suits at least not daily. Now you can save on your cleaning bill. Take a look at where you are shopping because there may be a store you can shop at which is not as expensive. Driving your car fewer places will save you on the wear and tear on your car, including maintenance, gas, oil and other miscellaneous expenses. Instead of taking your car to the dealership where labor charges can range anywhere from $32 per hour (the low end) to $60 per hour, take your car to a back yard mechanic. This will be a major reduction in your auto repair bill.
Several other ways to cut expenses is to take a look at AARP. This website allows anyone over the age of 50 to realize discounts in every area you can imagine, including auto insurance, homeowners insurance and even airline tickets. Other benefits you receive is from a customized dental program, life insurance, long term care, and internet provider discounts. Available to members of AARP also include a discount on financial and legal services, travel discounts, entertainment discounts such as Seaworld and Busch garden are also available just to name a few. There are many many more such as discounts of up to 35% on name brand products from retailers and also on various books.