It is a great idea to audit your monthly expenses at least once a year,  especially if there has been a lifestyle change. A lot can change in a year- costs, your lifestyle, your needs, your priorities; It is easy to let your spending spin out of control fast. Here is a list of some things to consider when making a plan to save:

1. How much is your Electricity or Gas bill? Are you doing everything you can to keep the costs as low as possible? Call your energy provider or go to their website to inquire about ways to cut energy costs. They usually have several tips and tricks to try such as turning the temp down on your hot water heater and your thermostat at night and at times that you are not home. In addition, some appliances use more power than others and appliances that are outdated or malfunctioning could be using more energy than necessary. Upgrading all major appliances to energy star rated appliances could help lower your energy use. Other things that can affect your energy use are home insulation, roofing and windows. If the insulation is failing, the roof is undermaintained or the windows are drafty, it could force you to use more energy to heat or cool the home. It is a good idea to have these checked out by a professional to ensure they are optimal for energy efficiency. Energytrust.org has some great references on their website.

2. Do you pay for Water? If so, are you doing everything you can to keep the costs as low as possible? Call your water provider or go to their website to inquire about ways to cut down on your water usage. They usually have several tips and tricks to try such as making sure none of your faucets are dripping and none of the toilets are constantly running. Sometimes unchecked minor home maintenance can incur big costs. Other ways to save on water include making sure you have a water saving shower head and limiting time in the shower. It is also a good idea to upgrade your dishwasher and washing machine to energy star appliances to help use less water.

3. How much is your Car and Home insurance? When was the last time you called around to get quotes to see if you can get a better deal? Do you know the details of the policy you have? Sometimes, policies can go years without being updated so you could possibly be paying for too much coverage or for a vehicle you don’t have anymore. It is easy to overlook those small details. It is good to call your insurance provider at least yearly to audit your coverage and make sure it is right for you.

4. Do you pay for Phone, Cable TV and Internet? Many people are “cutting the cord” to save money on phone and cable by just having a cell phone and watching TV over the internet. It is different but it’s doable and it could save you a lot of money.

5. Do you pay for health insurance? Do you know what the details of your policy are? It is a good idea to review your medical policy annually with a qualified professional to make sure you are getting the coverage that you need at a price that you can afford. As you age and approach 65, you will want to seek out a Medicare expert that can explain how that program works- Medicare has different tiers of coverage so you can pick what works best for you. It is also a good idea to check with your medicare provider if you move. Moving to a different city, county or state could affect your benefit or access to providers.

6. Credit Cards and Loans: Do you know how much debt you are carrying? How much are your monthly payments for your debts? Debt can snowball and become unmanageable very quickly especially when there are late payments that incur extra fees.  Debt in retirement can drain a budget leaving the debtor exhausted with no end in sight. It is a good idea to pay off debt as quickly as possible. Do everything you can to make payments on time and pay more than the minimum amount due each month. A good way to pay off debt is to focus on the smallest bills first. When you pay off one debt, put the money that you used to use to pay that debt towards the next debt on the list. This strategy has helped many people get in front of the mountain and successfully reach the peak.

7. Car Payments: Do you need to drive a brand new Chevy Suburban with a $700 monthly payment? It could be time to downsize into a vehicle more suited to your lifestyle. Sure, you like to load up the car with 6 friends for a weekend getaway or a night on the town and you can still do that with a rental car- then, at least when someone has an accident in the backseat, it’s not in your car. It might be a better idea to pocket that $700 and downsize to a more modest mobile.

8. Prescriptions: Many people don’t know that sometimes you pay more for a prescription if you have insurance than if you didn’t have it and the same prescription can have a different cost depending on your insurance. That’s right, I know that sounds crazy but it’s true. In addition, your co pay cost could be more than the actual cost of the prescription. It is very important to check all your costs by calling around to different pharmacies and ask ing them if they can check what the cost of your meds. would be with your insurance,  if you didn’t use your insurance and if they have any prescription discount programs available. The website www.goodrx.com is also a great resource to check medication costs. To seek out a trustworthy medicare expert in your area, check out our recommended professionals page HERE.

9. Groceries: Prices vary on different items weekly at different stores. Compare pricing for the items you buy the most and shop around. In addition, many retailers have a senior discount day. Try to do your shopping on the day that you will get the most savings. Also, check weekly circulars for coupons and sign up for coupons online. Many companies and brands will send you online coupons for their products if you sign up for their emails. It is also important to avoid brand loyalty. Sure, we all have our favorites but sometimes paying more for the label isn’t actually worth it.

10. Rethink your lifestyle: Do you have a gym membership that you haven’t used in 6 months? Do you pay for a timeshare but never take vacations? Do you give away more than you can actually afford in trying to help friends and family? Do you buy anything you don’t actually need like lottery tickets, fancy expensive watches or designer purses? These are some of the hardest habits to break but could be exactly what you need to give your budget some breathing room. Sometimes having more income won’t help if you are spending outside of your means.

11. House Payment: Do you pay a monthly mortgage payment? Statistics show that most people who enter retirement with a mortgage never actually pay it off. They struggle each month to make the payment and never get to feel the joy of paying off the burden they carried the longest. It’s a shame really. Many people 62 and older are enjoying retirement with no monthly mortgage payments thanks to their reverse mortgage loan. They are able to retain their home ownership, get rid of monthly mortgage payments for life and some even have access to a line of credit that has the potential to grow over time with no monthly mortgage payments due back on what is borrowed. This loan is changing retirement and changing lives everywhere. Getting rid of your monthly mortgage payments in retirement could give your budget the wiggle room you need to make your retirement dreams a reality.

There are many ways to save money in retirement. Sitting down and making a plan is the first step. There is power in knowing where your money is going and what it is doing for you. Auditing your personal finances will bring you closer to a solution for your unique financial needs. When you are ready to get rid of your monthly mortgage payments, Call Jeff Foody at 503-427-1667.