See what a shopping expert says about these habits that make you lose money monthly!
While a lot of people believe themselves to end up being conservative with their money in retirement, shopping experts unveiled something different!
It seems like seniors are prone to falling prey to some mindless money traps and some spending habits that end up eating up their nest eggs faster than they could have anticipated.
We have discussed this with a couple of shopping experts, and they have revealed to us that a lot of retirees end up having several spending habits that, even if seemingly small, end up accumulating over $600 spent on items and services they do not actually need.
When you end up paying a couple of bucks, that seems like nothing. In the grand scheme of things, these small spending habits end up adding up and wasting your money.
As a retiree, one cannot afford to lose this much money every month, so we have spoken with these shopping experts to pinpoint which are the habits that most people, but especially retirees, should break to save more money than they lose each month!
Curious? Keep on reading to discover them!
Subscription hoarding
This is one of the most common traps that most Americans fall into, and it ends up eating away at everyone’s wallets and savings accounts.
Having a lot of subscriptions and memberships that they do not end up using at all!
This is one of these habits that a lot of us need to break since, in the end, it’s like throwing money out the window.
Be it that magazine membership that you have not read monthly in years or that gym membership you swore you would use but never actually do, you should start to evaluate what you are paying for and what you are actually using.
Sure, some of these are not that expensive, but when you add them together, you will end up with up to $100 a month that you could use for other things. If you want to save more, you should first look at what you are spending money on.
Same with streaming services; you should see what you actually use and like, and then cancel all other subscriptions that you do not need.
Of course, these are just some examples; your situation may be completely different.
Always eating out
Yes, you read that right. There is nothing wrong with treating yourself from time to time, but a lot of retirees end up falling prey to eating out too often.
One thing that a lot of retirees are forgetting in their happiness at being retired is that they are no longer bringing in a full paycheck every month and that they are living on a fixed income.
Since they have a fixed budget, while most include a section for eating out, it does not mention going out frequently.
If you rely on takeout or going to restaurants, you will be spending a sizeable part of your monthly income on this expensive habit.
You should make sure you strive for balance. Cooking at home is always going to end up being more affordable and, in the grand scheme of things, also healthier.
So do yourself a favor, do not develop the habit of relying on takeout too much, and keep going out with friends as an occasional thing.
Ignoring senior discounts
The biggest money-loser habit on our list is related to how you can save money! A lot of retirees end up forgetting that they are entitled to senior discounts, and they do not make most of these deals that are within their reach.
Shopping experts have told us that a lot of the seniors they have talked with have not been using their senior discounts, even when they know where they can access them.
A lot of them end up feeling awkward to ask about the senior discount, and they end up losing quite sizeable savings each month due to these lower prices.
There are quite a lot of companies and brands that end up having senior discounts for things like everyday items and food all the way to travel and even phone plans!
Do not let anything stop you from getting a deal that will help you save some money; in the end, these discounts are there to be used.
So do yourself a favor and save more money with these deals, and do not forget to sign up for AARP.
They have tons of discounts, and with only around $15 for a yearly membership, this is one of those subscriptions you should not ignore.
Getting into resale apps
A lot of us have a shopping itch, and having access to a lot of resale apps and platforms can easily transform into an expensive habit that will be hard to give up.
Indeed, these apps and platforms are a great way to find some items you need second-hand, in great condition, and sometimes even brand new for great prices.
Yet, when you make a habit of scrolling through them and getting all the pieces that you like, you will end up spending more than if you went out and bought the things you need at full price.
So make sure that while you check out platforms like eBay, Poshmark, Depop, Facebook Market Place, and many others like them, you do not end up falling into the habit of bidding on items willy-nilly.
Not looking at interest rates
This is a trap that everyone falls into, not just retirees. However, older adults are more often exploited by this habit of not checking all the interest rates.
It is normal to have the habit of just paying your bills and forgetting about them. Yet, you may end up losing a lot of cash every month from these bills just because you are not carefully checking for ways in which you could lower your interest rates.
You can change your providers, and this could end up saving you money on your bills. Sure, a couple of bucks on a bill may not seem like much, but when you add the utilities, cable, and insurance for the home and car, you end up with a pretty sum saved.
Just make sure you are getting the best deal you can. There’s nothing wrong with shopping around for a better rate and/or better benefits for the same price you are paying now.
That’s what the free market is for anyway!
Impulse shopping
One thing shopping experts end up seeing often is reckless shopping. This is one of the biggest habits that many people do not realize they have, and this is because the impulse is too great.
Think if this applies to you: you are in a store and you see something you like; it seems like it is not too expensive, and then you end up buying it “just in case,” only to discover later that you either have this item or that you have no use for it!
Worst-case scenario: you do not actually need or even like it!
A good way to stop yourself from going down a spiral with this habit is to make sure that you either make a list of what you need or that you establish some rules for yourself that you are going to follow, especially when it comes to home decor, clothes, and appliances.
Do not go with the first thing you see; make sure you are aware of what you like and dislike in terms of clothes, and when you feel the itch to get something you know you don’t need, don’t give in.
You can always come back the next day to get the item you need or order it online if you truly need it.
Stop and think about your purchase a little bit more and see if you truly need it. You’ll be surprised at how much money this habit saves!
To make sure that you are keeping track of your spending properly, make sure you keep track of all your spending. A great way to do this is to have a budget planner in which you write things down physically. That way, you will have no issue remembering things, and it will come in handy come tax season too!
There are many ways to unknowingly lose money in retirement. Likewise, there are so many other ways in which you can save money if you are careful with your spending habits! If you want to see the best tips for saving money as a retiree, you’re going to want to read this article here!
