Once you retire, you will probably live on a fixed income. The more money you have
saved, the higher your "fixed" income will be. A fixed income isn’t all bad if you
plan right. The trick is to stretch your dollars so you have more buying power.
Here are a few tips to help you do just that.
Know your exact income
You’d be surprised at how many people really have no idea how much they have coming in each
month.
Know your fixed expenses
Fixed expenses include rent or mortgage, insurance, utilities, etc. Some of these
expenses will be monthly while others will occur periodically throughout the year.
Calculate your yearly expenses
This gives you your monthly expenses. It’s a good idea to put this amount aside, even
if the bill isn’t due for a few months. This way, when major expenses are due, you
won’t have to worry about where the money will come from.
Less is more
Try reducing the amount of toothpaste, shampoo, laundry
detergent and so on that you use. Most people are wasteful and use between two and
three times more than is necessary or recommended. You’ll be surprised how much you’ll
save.
Make a grocery list and stick to it
Take advantage of bulk buying or coupons
only if you’ll actually use it. Some supermarkets offer discount cards or memberships
that can help you save a little extra.
Check your local library
Instead of subscribing to a magazine or newspaper, check your local library. They
usually offer a wide variety of publications as well as back issues. Also, instead of
buying new books, try buying them used or checking them out from the library. You can
also check out CD’s, DVDs and movies from your library for free.
Shop around
Though it may seem tedious, bargain shopping can really help
you stretch your dollars. Shop competing grocery or discount stores for sales and
coupons. Shop for the best air fares if planning a trip. You can save money sometimes
by flying out of a different airport.
Buy big items during the off-season
If you're looking for a new winter coat, check out sales in February for great deals on
quality products. Shop after Christmas sales for next year's gifts. Need a new
barbeque grill or lawnmower? Look for Labor Day sales on outdoor and summer items.
Shop garage sales and thrift stores
You can usually find pretty good deals on gently used items. Check for damage and
make sure everything works before making a purchase.
Keep one car
If you can get by with one car, consider selling your second vehicle. This will save you a
bundle on gas, maintenance and insurance.
Take good care of your car
The better you treat your car, the longer it will run. Once you’ve paid off your
automobile, consider putting the payments in the bank. This way, when you do decide to
buy a new car, you’ll have a large down payment to make your monthly payments less of a
hassle.
Walk or ride a bike
Not only are you getting exercise but you’ll also save gasoline, oil, and wear and tear on
your car.
Take advantage of discounts
If you drink soda, wait for it to go on sale and then stock up. If you're traveling,
ask your hotel about meal or attraction discounts. If you're a member of AAA or AARP,
you're already entitled to many discounts so take full advantage.
These are just a few tips to help your live within you means. There are many other
ways to help cut costs. And even if you’re not living on a fixed income, these are
great ways to save some money.