16 ways to cut your expenses in your 50’s

The “American dream” is a debt trap. $80,000 or more for 4 years of college, $30,000 for a typical wedding, $300,000 for a home, $40,000 for a car. We snare people in their 20’s and they spend the next 40 years giving most of their time, that they will never get back to job trying to pay it all off. As you reach your 50s, you may start to think more about your financial future. This is a crucial time to review your finances, cut expenses, and invest money. By doing so, you can not only free up more money to invest but also secure a more comfortable retirement. In this article, we'll cover 16 ways to cut your expenses in your 50s.

1. Review Your Budget: The first step in cutting our expenses and saving money was to review our budget. We took a close look at our monthly expenses and started using MINT to see where we can cut back. For example, do I really need that gym membership I haven't used since January? Am I paying for subscriptions I no longer use? We identified areas where we could cut expenses and redirect that money towards retirement savings. If you have never budgeted before well here’s your sign to start. Just start is tracking your expenses with any of the tools we went over Here and review for three months. You will have a pretty good picture of what you are spending and where you can reduce. For us we were shocked at what we were spending and where.

2. Downsize: My wife and I went from a 2900 sq.ft. home we were renting to an 800sq.ft rental saving $500/month. As you approach retirement, consider downsizing your home. Moving to a smaller house or apartment can significantly reduce our living expenses, freeing up more money to invest for retirement. My wife and I went from a 2900 sq.ft. home we were renting to an 800sq.ft rental saving $500/month.

3. Refinance Your Mortgage: Refinancing your mortgage can help you save money on interest payments and reduce your monthly mortgage payments. If you haven't refinanced in a while, it's worth looking into. If you are one of the lucky ones with the sub 5% mortgages this tip may not be for you. Maybe a house hack is more for you. Rent a room, RV, or Car. The extra money could help pay for your mortgage, or other debt you may have.

4. Cut Back on Dining Out: This one I still struggle with. Dining out can be a significant expense. Consider reducing the number of times you eat out each week or month and cooking more meals at home. For my wife and I we love eating out and is one of the most common things we did with our friends. I remember one month in 2019 we spent $2,000 on food for the month! Ugh. One thing that worked for us is we ordered from one of the food delivery services like Blue Apron or Green Chief it made cooking at home convenient. Everything you need delivered to your door. All you do is cook it according to their directions. Which you get to keep. After that we started to invite our friends and family over for a cookout or dinner and game night. These are some of our best memories with our friends! Now we still have all these recipes, and we just shop for what is on the cards using a grocery store app, my favorite app is Aldi. I choose the meals we will make that week, open the app, and fill the cart with whatever we need. We still go out to eat, not nearly as much.

5. Reduce Your Transportation Costs: Transportation costs, such as car payments, insurance, and gas, can add up quickly. Consider downsizing to a more fuel-efficient vehicle or using public transportation to save money. I drive a 2013 Dodge caravan with 179k miles, and my wife drives a 2012 Toyota Camry Hybrid that has 210k miles on it. Both are paid for. It is now like a game on how long we can drive them.

6. Shop Smarter: When shopping for groceries, clothes, and other essentials, look for sales and discounts. Use coupons and shop at discount stores to save money. I try and never pay retail for anything. If you have an Amazon account, look at your last 12mos of purchases. Did you really need all that stuff? That’s what it truly is, stuff. Every retail business has made it so easy to just click, buy, and get it delivered. How much of that stuff are you still paying for on your credit card at 20% interest rate or more?

7. Cut Back on Subscriptions: Subscription services, such as cable, streaming services, and monthly boxes, can quickly add up. Consider cutting back on these services or canceling them altogether.

8. Pay Off Debt: Paying off debt can significantly reduce your monthly expenses and free up more money for retirement savings. Start by paying off high-interest credit card debt, any student loans you have, cars, RV, etc.

9. Find Creative Entertainment Options: Everyone should take time for themselves and have fun. Entertainment expenses, such as concerts and vacations, can be costly. Look for free or low-cost alternatives, such as hiking, biking, free concerts in the park, or visiting local museums. If you like movies find out what day the local theater has reduced prices. It may be a Tuesday and it’s $5 compared to $20.

10. Use Energy-Efficient Appliances: Energy-efficient appliances can save you money on your monthly utility bills. When it is time to replace an appliance consider upgrading to more energy-efficient models. When you buy them use the money you saved from the above hacks to pay for them in full. If you need to use a credit card, check to see if the store has a 0% credit card or financing. Then pay it off before the 0% interest runs out. If you don’t you will most likely have to pay all the interest since the time you bought it! Yikes!

11. Cut Your Cable Bill: Cable bills can be a significant monthly expense. Consider cutting the cord and switching to a streaming service. Do you really need 115 channels? How many times have you said there is nothing on TV? I still have cable internet but haven’t had cable TV in years.

12. DIY Home Repairs: Home repairs can be costly. Consider learning how to do some repairs yourself, such as painting or basic plumbing. You can literally learn everything for free on YouTube. There is really no excuse. My wife and I gutted our kitchen and redid everything except the quartz countertops ourselves. I’ll show pictures in another post.

13. Buy Used: Buying used items can save you money on everything from furniture to clothing. Consider shopping at thrift stores or online marketplaces for gently used items. Facebook marketplace, Offer Up, and estate sales are the approach my wife and I use. We also like Goodwill for clothes.

14. Negotiate Bills: Don't be afraid to negotiate your bills, such as your cable or phone bill. Call your provider and see if they can offer you a better deal. If you have medical debt, ask for an itemized bill and then negotiate each item down. This alone can save you thousands of dollars.

15. Take Advantage of Senior Discounts: As a senior, you may be eligible for discounts on everything from travel to entertainment. Take advantage of these discounts to save money. Even

16. Set up automatic bill payments: set your bill payments up on autopay and never be late again. Most banks offer this service. You can also setup autopayments with every credit card that I am aware of. Every bill I have is setup on autopayment.

In conclusion cutting expenses and saving money in your 50s is crucial for securing a comfortable retirement. Review your budget and identify areas where you can cut expenses, such as downsizing, reducing transportation costs, shopping smarter, and finding creative entertainment options. Paying off debt and negotiating bills can also significantly reduce your monthly expenses. To save even more money, consider using energy-efficient appliances, cutting your cable bill, and buying used items. And don't forget to take advantage of senior discounts to save even more money! Then set the rest up on autopay and you are on your way!