When you spend your entire life working and saving for retirement, it can be hard to break those habits when you finally reach retirement. However, as Baby Boomers reach retirement, it’s imperative that they loosen up a bit and finally spend some of those hard-earned funds. The economy is a complex system, and it’s influenced by a myriad of factors, so it’s a bit simplistic to say that it relies on retirees spending money. However, your generation really does have its fair share of weight on the scales. By 2030, those aged 65 and older will make up over 20 percent of the population. If 20 percent of the population sits on their money and doesn’t spend, it will have a significant impact on the economy — especially when that portion of the population holds 70 percent of disposable income in the United States.
With that being said, it’s perfectly understandable to be hesitant about throwing around money when you enter retirement. First of all, it’s hard to break frugal habits. Second, there is always that lingering fear that your savings could dry up too soon. But as long as you have enough in your savings to cover your costs of living and life insurance premiums, you should be fine. The secret is to find ways to have some more fun but save money where you can. Try using the following advice to break your habits and start enjoying the fruits of your labor in retirement.
Save Money Where You Can
There are many benefits to entering your senior years; among the list is definitely the number of discounts you can get on things you buy every day — and it’s not all about early-bird specials, either. From reduced mobile phone plans to discounts on foods at your favorite restaurants, brands know that they can attract those Baby Boomer bucks by offering age-based discounts. You can find the best places that offer senior discounts by downloading the AARP Now Mobile App which notifies you when you’re eligible for benefits and discounts that you program into the app. But when in doubt, simply ask if there’s a senior discount available.
Everybody has a list of things that they’ve always wanted but never dared splurge on for themselves. Whether it’s your dream car or those golf clubs you’re convinced will improve your handicap, you know there’s something you want but have always put it off because spending money on it seems irresponsible. But after years of working, it’s time to finally treat yourself. You can be financially responsible by buying used. This especially makes sense if that dream item is a car. New cars depreciate in value by 10 percent as soon as you drive them off the lot, and by 20 percent after the first year of ownership. You can save an average of about $13,500 if you buy a used vehicle.
Other things you should always buy used:
- Recreational vehicles
- Sports and exercise gear
- Fine jewelry
- Designer clothes
- Electronics and computers
Retired seniors are on track to make up 20 percent of the American population while holding 70 percent of the disposable income. While it can be hard to break out of scrimping and saving mode, it’s important that Baby Boomers treat themselves for the good of the economy and for their own enjoyment. Ease your way into treat-yourself spending by saving money where you can. From finding senior discounts to buying used, there are ways to be financially responsible while allowing yourself to truly enjoy your retirement.