14 Frugal Habits Boomers Should Stop in Retirement

For years, we’ve heard it’s important to be frugal in retirement. Your money won’t last otherwise.

Yet, there’s such a thing as being too cheap. In fact, frugal doesn’t mean cutting out entirely. It means being smart about how you spend your money so that it lasts longer. That doesn’t mean you shouldn’t enjoy life and all the things that make you happy.

According to financial experts, there are several things you really shouldn’t skimp on. We’ve compiled a list of habits that rarely pay off.

1. Eliminating Social Activities

Social activities are good for the soul. It’s important to get out and enjoy yourself, whether it’s dinner with friends or family, or a night out with your friends painting or playing bingo.

If you cut social activities out as a means of saving money, you’re going to feel the pinch elsewhere: your mental well-being. So take the opportunity to get out and engage when you can.

2. Thinking Cheaper Is Always Better

It’s only natural to want to save a few bucks by purchasing a cheaper option, but you have to be wary here. Cheaper is not always better. Sometimes the price tag is indicative of quality.

This goes for cheap labor, too. If you’re looking for a landscaper, maid, or other service, make sure you’re looking at more than just cost. Read reviews and do your research to ensure they’re actually skilled and not just ripping people off.

3. Taking Couponing Too Far

Coupons are great. They can help you save additional money on items, and sometimes you can stack store and manufacturer discounts.

However, there’s a downside to coupons, too. They can tempt you to buy things that you don’t need. Not only will you waste money instead of saving, but you’ll also have items in your home that you don’t need or use.

4. Buying in Bulk

Piggybacking off the couponing issue, there is such a thing as having too much of something. There are items you can reasonably buy in bulk, such as paper towels or toilet paper. But, be very cautious when stocking up on other items.

Also, be aware of the costs. Sometimes, buying bulk doesn’t save you money. I’ve regularly seen items in bulk that cost more per unit than buying lesser quantities. Before you hit the buy button or place the item in your shopping cart, make sure first, that it’s something worth buying in bulk, and second, that you’re getting the best deal on price per unit.

5. Not Investing

Believe it or not, you should keep investing even beyond retirement. After all, why wouldn’t you want to see your money grow?

The difference in retirement versus when you’re working is to ensure that now you’re a bit more conservative. Don’t take those riskier chances, but definitely find opportunities to keep your money growing.

6. Taking Budgeting Too Far

Budgeting is a great way to pinpoint costs and minimize spending. However, there is such a thing as going too far.

If your budget is so restrictive that you’re not allowing for you to participate in or purchase some of the things you love, you might be overdoing it. Make sure there’s a healthy balance of spending vs. saving.

7. Downsizing Too Much

Downsizing after you retire is only natural. After all, you are likely looking for a simpler life, and having too much stuff can complicate that. However, you need to be cautious in this respect, too.

For example, if you plan to downsize your home, make sure you’re not moving into a money pit. Or, that you’re not going too small. Many people underestimate they space they’ll need.

8. Not Enjoying Hobbies

Part of the luxury of retirement is the free time to enjoy all of life’s pleasures, and that includes the things that make you happy. Your hobbies.

If you aren’t taking the time to enjoy your hobbies, you’re likely being too frugal. If doing too much is costing more than you’d like, then you can dial it back to just one hobby, but don’t cut them out of your life entirely.

9. Ignoring Maintenance

Whether it’s your home or vehicle, you need to ensure you’re regularly maintaining your assets. They can fall apart with routine maintenance.

For example, if you know your home is getting drafty, it may be time to replace your windows. If you notice your car is sluggish, it’s time to visit the mechanic for a tune-up. Cutting out on these expenses will lead to more expensive ones later on.

10. Not Calling In the Pros When Needed

There’s a certain kind of satisfaction we get from completing DIY projects. But when you start trying to DIY everything, you are likely going to end up with some quick fixes that could turn expensive. Or worse, you’ll do more damage.

There are some things you need to call the pros in for, such as with appliances, and this is not an area you want to skimp on.

11. Eating Unhealthy

Those 33-cent packets of ramen or $5 prepared meals in the frozen section may seem like a good way to save money, but at what cost? These items are rich in sodium, which is not a good thing.

That’s not to say you should never enjoy them. If you like them, they make for a good splurge here and there, but it should not be the bulk of your eating. Buying produce and fresh meat may be more expensive, but you’ll be benefitting your body much more.

12. Getting Rid of Your Car

This is a tough one. If you have two or more vehicles, downsizing is a good way to go, especially if you don’t drive them. However, you should keep at least one. This will cut down on travel costs, as you will still need to go to the market or visit friends or family.

Plus, if you keep one vehicle and pay for routine maintenance on it, you won’t have to worry about astronomical expenses.

13. Not Investing in Your Health

Investing in your health in your retirement years is so important, especially, since you’re likelier to experience significant issues as you age. Of course, that’s not true for everyone, but the better you take care of yourself — with regular checkups and healthy habits — the better your quality of life.

Make sure you don’t skimp on healthcare coverage because this is the time of life when you’ll need it more.

14. Skipping a Financial Planner

A financial planner is an important tool to have in your pocket. One can help you manage your retirement funds and ensure you still earn money on the balance.

These experts can also help you make sound spending decisions and provide you with a host of tools to ensure your money lasts.