10 Things Seniors Should NEVER Waste Money On

When we think about retirement, we think about living and spending our money freely. This can be true for some, but everyone’s retirement experience is different. Translation: Some have more money than others. However, seniors should never waste their money on certain things. No, I’m not talking about your morning Starbucks, breakfast at your favorite diner, or buying that new blouse you’ve been eyeing for months. Here are some things that seniors should NEVER waste their money on. 

1. Home Remodels

In your younger years, it was easy to earn money for a remodel through a side hustle or a second job. If you’re looking to sell your home and downsize but want to remodel a new house, think twice. Do your research to see how much it’s going to cost to redo your kitchen or bathroom. Shop around, read reviews, and ask your friends who they’ve used. Next comes the big question: How much of your savings are you going to spend, and how much value will it add to your home? Chances are, it may not add much. Even if you’re looking to sell and if you plan on staying, you’ll never see the benefit financially. Don’t fall into the remodeling trap!

2. Consumer Debt

Debit is a dangerous situation for anyone to be in, young or old. What is touted as a “lifestyle” has ruined many lives. In fact, debt is something that seniors should avoid at all costs. When you buy something on your card and don’t pay it off right away, it’s like paying double for it with interest rates, card fees, and late payments. As a senior living on a fixed income, you don’t have financial room to spend on interest. 

3. Expensive Cars, Boats, and Luxury Vehicles

As we get older, our health goes. Unfortunately, that means we can’t see or hear things like we used to. Eventually, we won’t be able to drive as well as we used to, causing us to use our expensive “toys” less and less. Before spending the money, consider things like how much your savings are going to take a hit. Also think about depreciation, insurance costs, and how many years you’ll realistically be able to use it. Don’t go for cars with all the bells and whistles but none of the appropriate safety features. Safety is way more important than style!

4. Unnecessary Insurance

Call your insurance agent or agents and talk about the insurances you have and if there are any, you may not need. For example, if you stop driving, you won’t need car insurance. Also, most disability insurance ends at age sixty-five. Consider your assets to help you decide what you do and don’t need. Even with insurance, sometimes less is more!

5. Phone and Internet Scams

Scammers target seniors at an alarming rate with phone and Internet scams, but they’re not the only demographic to fall for them. If you get a call, text, or email asking for money or your personal information, do NOT give it out. If it’s from a company, call their number directly and ask them about any scams going around that are posing as the company. Also, with Social Security, you’ll never have to pay to get your Social Security check, nor will an agent ever reach out to you by phone. Also, be aware of all the Medicare scams that are currently running rampant. Don’t ever trust anyone blindly!

6. Luxury Travel

Taking the time to travel the world and see things you’ve never seen before is great. We all have travel bucket lists we want to check off, especially when we have more time in retirement! However, make sure you have budgeted ahead of time. This is not the time to splurge on a random, expensive trip and have your retirement savings go down the drain. Before you book that flight to Hawaii, check and double-check your finances. No view is worth debt. Don’t waste your money on a flashy-but-ill-advised vacation!

7. Independent Adult Children

If you’re the legal guardian of a grandchild or a caretaker for a disabled adult child, you have no choice but to spend money to take care of them. However, if your adult child can work, you don’t need to support them. This can be difficult, and your child may be upset with you or think that you don’t love them. However, enough is enough sometimes. You need to stop supporting them. The last thing you should do is overextend your budget. So, have that difficult talk and let your little birdy fly the nest. It may sting a little at first, but in time, they’ll probably thank you for it!

8. Expensive Hobbies

When you were younger, you could afford expensive dinners out. Going to the theater and buying the latest and greatest golf clubs didn’t put so much as a dent in your wallet. However, you’re not able to afford those things anymore. What does that mean? Now is the time to find a cheaper hobby. You can find all kinds of free events to attend in your area. Additionally, craft stores have all kinds of classes you can take, from cake decorating to knitting. Also, look at classes and events at your local library. With a little digging and determination, you’re bound to find something new to do that you’ll love and make some new friends along the way. If you have an expensive hobby that’s hard to shake, try cutting back instead of quitting altogether. 

9. Overpriced Home Services

If you need home repairs or maintenance, be wary of contractors who overcharge for less-than-stellar work. Research online and over reviews with a fine-tooth comb. Make sure you shop around for competitive rates! You can also ask friends and family for references and referrals. Here, it’s not a waste of money. You just need to be very cautious. In the end, make sure you go with your gut. If you have a good feeling about somebody, don’t ignore it. However, if your gut tells you to proceed with caution…look elsewhere for another contractor.

10. High-Interest Loans

If you need a loan, avoid ones with outrageous interest rates. Instead, search for lower-cost borrowing options. If you’re not sure what those are, get online and do some research. Then, contact your bank or a financial advisor for help. You can also ask your friends and other retired family members about loans that they have had and what their experience was. You will also want to look at the reviews of the institution that you are getting your loan through to make sure they have an excellent reputation. The last thing you want or need is to get caught up in a loan with a high-interest rate during your retirement years.

Stop Wasting Your Money!

Your senior years are supposed to be the best years of your life, but make sure you’re living according to your means. Take a moment to reflect on the list above and see if any of the points resonate with you. Do you…

• Need that Jaguar that’s sitting out in the driveway when you know your eyesight is failing?
• How about all those insurance policies you have? Can you call your agent and ask them to cancel an unnecessary policy or find better rates?
• Can you afford to support your adult children? Are you helping them or hampering them?
• Do you need that new bathroom?
• Is a cruise to Jamaica worth the stress you’ll feel once you get back home?

Look out for yourself and make sure you aren’t wasting money when you don’t need to! Your budget will only go so far, and you can only do what you can do. While budgeting may not be fun, it’s worth the peace of mind you’ll feel later.

Click here to find more Thrifty Tips.