senior Scoops

If we want to have more, we need to spend less!

This blog began with the belief that it is possible to retire with less than a million-dollar nest egg, which many experts insist is required. When I made that assertion some of you asked—what kind of world do you live in? There are many of us out here making do with far less than that.

If that’s the case I am sure you are already have your own money saving ideas. I would love to hear them.

Here are some other replies:

“I have been lurking here on this sub (Reddit) and frankly I am intimidated to join the conversation. People are wondering how they are going to get by on $3K in Social Security and a pension—all the while concerned if the 4% rule will work for them. I have none of that.”

Or:

“I am taking care of a spouse who was in an accident last year. He does not want to do anything but stay in the house. I need more out of life. We are not destitute, but hardly rich either. I am tired of these four walls. Money is not a big issue now, but I am early 60s and I see how health care is eating away at our savings—it scares me.”

One more (Facebook)

“My husband died recently, he took care of everything. I don’t know where anything is or how to begin handling anything.”

These are the people I hope to reach with this blog.

Truth be told

If we accept that comfort and contentment can be achieved with less. We must also accept that some of the luxuries that come with a million-dollar portfolio are things we will have to forgo.

There can be no more “keeping up with the Joneses.”

For instance, we will not be able to travel to five-star hotels in Paris or Florence every year.

But, if we use our credit cards wisely and travel off-season, we may be able to stay in a charming little Airbnb a metro stop away, or two, from the West Bank every other year.

We need to recognize that we don’t need the latest iPhone model when our current model iPhone 10, is still in good working condition.

Moreover, we will have to prioritize basic maintenance like oil changes instead of indulging in the latest shiny object on display at a showroom somewhere. Or—OMG-make due with one car!

Our rules have got to be different.

Expenses, expenses, expenses

Some of you may be thinking, “West Bank? I’m struggling just to pay my rent and put food on the table.”

Let’s get the tough love out of the way: you need to find a way to reduce your expenses so they do not exceed your income. It’s a simple concept, but not always easy to achieve.

Here’s how to start:

Take an honest financial inventory. Write down your income and expenses in a notebook. Keep a log, and enter every penny spent, even if it is for a cup of coffee—be meticulous.

After doing this for a month, you’ll notice the expenses you can cut to save money. They will jump off the page at you.

Remove the unnecessary expenses from your budget, and you are on your way. But you have to keep at it.

Here are 7 other suggestions for lowering expenses to consider that can be done now.

Credit Cards (Very Important)

If you look at your minimum payment before your balance, you are doing credit cards all wrong. Paying 15.99%—25.99% interest on debt is a mortal sin for those of us on a fixed income—really for anyone.

It is imperative to bite the bullet and do everything to get out from under that monthly interest charge. An annual fee on a card is also a no-no.

Let me repeat this because it is so important. Pay off those stinking credit cards.

If you do not have the funds. Call the card company to explain your problem. They are going to be far more likely to help you if you take the first step. PLEASE set the process in motion. Get rid of that debt!

Cable TV

It’s time to cut the cord. I’m surprised by now many people haven’t already done so. Whenever I enter someone’s home and see a cable box, I can’t help but ask how much they’re paying for the service (a habit that drives my wife nuts). Usually, it’s a $250 or more. That’s way too much. You can get a streaming service like Hulu or YouTube TV for about $70 and still get your local channels. If you want to add premium channels like Netflix, HBO Max, or Apple TV, you can do so at your own discretion. One thing to note about premium services is that there’s usually a tier with commercials at a discount.

Phones

You do not need a cell phone and house phone, that is another cord that needs to be cut. I know, I know, you have had the same phone number for 40 years. You can live without it.

Do not be afraid to jump from carrier to carrier every couple of years. If you are using Verizon now, know what Sprint or T-Mobile are offering to entice you to switch. Sometimes those deals can be very attractive, even to the tune of a new phone. A couple of years ago I moved from Verizon where I was paying $110. for my wife and my phones, I was able to lower my bill to $79. with a new phone, by moving to T-Mobile. Keep your eyes on the ads.

You can change cell phone carriers and keep your cell number.

Senior Discounts

Don’t buy anything without asking if there is a senior discount.

Most grocery stores designate one day, usually Tuesday, Wednesday, or Thursday as Senior Day. It is generally a 5% discount. Most entertainment venues have a Senior rate, transportation systems also—take advantage. If a senior rate is not posted, ask— the worst that could happen is they say no.

Insurance

Make sure to call your insurance broker on an annual basis to ensure that you are receiving all possible discounts on your home and car insurance. Additionally, shop around for competitive rates from other companies.

If you do consider switching insurance providers, exercise more caution than you would when switching phone carriers. Keep in mind that overall satisfaction with an insurance company’s customer service and claims procedures are an important factors when making a decision.

Bank Statements

Go back several months in your bank statements and check for any subscriptions that you are paying for but not using. It could be something you bought on impulse and forgot to cancel. If you find any charges that don’t seem right, call and contest them. If you are unable to get them reversed, make sure to properly cancel them to avoid any further charges.

Moving forward, check your statements online regularly—at least monthly to check for fraudulent charges. Also, when reviewing your bank statement make sure the bank itself is not charging you anything to hold YOUR MONEY and checks should be free. (more on banking in future posts)

Avoid Paying List Price

Always try to negotiate a discounted price, especially for higher-priced items and services.

Get estimates for work.

When you find a provider and price you are comfortable with, make a final offer before deciding–you never know.

When buying an appliance, offer 20% below the list price and observe the salesperson’s reaction. If they pause to think about it, you may have a chance to negotiate a better deal.

If you see an item in a store that is slightly damaged, make an offer pointing out the defect.

Important note when it comes to services, the exact price must be negotiated before the service is rendered. Know exactly what you will be paying beforehand.

Conclusion

These are seven basic practices that seniors can begin using right away to lower their expenses.

Never be afraid to question a charge if it seems high. That needs to become a mindset.

Frugality is a virtue.

It’s the job of any business to separate us from as much money as possible, so we must do our best to protect our finances.

While none of these individual practices (except credit card debt) will significantly impact one’s way of life, they are all pieces of something bigger—when taken as a whole their impact can be significant. By taking care of the details, the bigger picture will take care of itself.

As Pink Floyd so aptly put it, “All in all, it’s just another brick in the wall.”

And by the way, we had the best music.

Put on your headphones and turn turn up the volume.

Now that we have begun to get a handle on expenses, next month’s finance article will look at raising our income through multiple income streams.