Inflation has become a hot topic lately, with many of us experiencing sticker shock when purchasing everyday items or resuming normal activities. For retirees living on Social Security or a fixed pension, this challenge is particularly daunting. Let’s explore some practical ways to adjust your spending habits and make the most of your fixed income.  

Rethinking “Fun Money” Expenses 

1. Food delivery apps: We’ve all become accustomed to the convenience of Uber Eats / Doordash / Grubhub / etc. – but have you ever examined how much these services cost? Many people don’t even realize how much more they are paying when they use these apps, but it can really add up. Even if the “delivery fee” is waived, often the prices for what you order are higher. Skip the app and pick it up yourself. If you are unable to pick up your order, consider asking a friend or neighbor to help you out, then reciprocate when you are able.  
   
   
2. Gift-giving habits: Be aware of your spending on gifts, whether it’s for grandkids or friends or even pets. Stop before you buy and ask yourself, are you purchasing this out of habit? Out of a feeling of obligation or guilt? Is there another way you can express what you are trying to convey through a gift? Can you get creative and make something or repurpose something instead? Oftentimes a handmade gift is more meaningful to the recipient than something that was purchased at a store, anyway.  
   
   
3. Rethink travel: You don’t necessarily have to cut out travel when you are living on Social Security, but you may want to reevaluate how you travel. Hotels and airfare are usually the biggest expenses when you travel. To cut back on these, think creatively. Can you pick a destination where you will be able to stay with family or friends? Or could you find a different destination that accomplishes a similar experience (like going to the beach), but is cheaper (think Clearwater Beach instead of Miami)? Can you use points or miles? Can you find special deals and discounts? Could you drive rather than fly to wherever you are going? Once at your destination, can you find free activities?  
   
   
4. Vehicle Leasing: During your working years, you may have been able to afford a new car every so often. When you are living on Social Security, that’s probably not the case. First, consider other transportation alternatives: do you even need a car, or is public transportation an option? Could a friend or family member get you to where you need to go? Second, think about how often you drive and where you go. Could you be just fine with a reliable used car? I am seeing many retirees consolidate from 2 cars to 1 car these days, and making it work just fine. Eliminating a car payment can save you hundreds of dollars every month. That’s pretty significant for someone on a fixed income.  
   
   
5. Subscriptions: These sneaky “small” expenses have the potential to add up without your realizing it. Try this: take a look at your credit card or bank account statements and tally up all of your subscriptions. Then calculate how much you pay for them on an annual (not monthly) basis. Is it worth it? Think about the last time you used each one. If the answer is more than a month ago, it could be time to cancel the subscription. Or, you may be able to change the frequency. For example, a friend did this with her Audible subscription. She wasn’t using it monthly like she thought she would. But she found out she could change it to an every-other-month subscription. That suited her much better. She saved a few bucks, and still got value out of the subscription.  

Getting “Fun” for Free 

Finding fun for free can be as simple as checking out your local library. In Austin, you can access everything from books to DVDs to streaming music, for free. Some libraries are even more creative: I know of one library that allows you to check out a ukulele and instructional video. You can learn to play the instrument for free! Most libraries also offer free classes to adults and children. This can be a great resource for retirees and their grandkids alike.  

Summary: Before making any purchase, ask yourself:  

• Is this a habit or a necessity? 

• Can I find a free or lower-cost alternative? 

• Am I getting the best value for my money? 

By being mindful of your spending and exploring creative alternatives, you can stretch your fixed income further and maintain a fulfilling lifestyle despite inflationary pressures. Remember, a little effort and creativity in finding free or low-cost options can go a long way in preserving your financial well-being and maximizing fun!