24 Things Frugal People Always Do When They First Retire

When frugal people first retire, what happens to their spending? That depends.

Some people were frugal because they had to be. They didn’t earn enough to pay for their wants and needs while also saving for a comfortable retirement. Once they retire, they can relax a little — and they do.

Others are frugal because they love stretching every dollar. It’s fun for them, so why should that fun stop in retirement?

After all, inflation can wreak havoc on a retirement plan. Half of new retirees said that their overall expenses were higher than expected, according to the 2024 Retirement Confidence Survey from the Employee Benefits Research Institute.

Here’s what frugal retirees do to keep stretching those bucks while still having a great life.

1. Track Their Spending

Retirement means more time on your hands. For some people, that means more chances to spend money.

Fellow retirees invite you to lunch. You decide to drive down the coast on a beautiful day. While walking the dog, you feel light-headed, so you grab a lemonade to cool down.

To be clear: There’s nothing wrong with spending money! But you need a sustainable plan. For example, your monthly budget could include line items like “day trips” or “meals with friends.”

As a new retiree, tracking your spending helps you to…

2. Test-Drive the Budget

A true frugalist always has a budget. A retirement budget is particularly important because you’re now on a fixed income.

Your spending plan looked good on paper, but how is it working in real life? As noted above, retirement can mean lots of new ways to spend. Additionally, sudden spikes in everyday essentials like food and fuel sure can bruise the budget.

Frugal folks know it’s wise not just to test-drive their budgets but to revisit them monthly to see whether adjustments should be made.

3. Sell Unnecessary Items

That work wardrobe? Off to the consignment store!

Do you really need two cars now? Think of all the savings on insurance and upkeep.

Let’s get real, honey: Why are we keeping these skis/kayaks/mountain bikes that we never use?

And so on. This not only provides a quick hit of cash but also reduces clutter.

4. Scope Out Side Hustles

Best-case scenario: Those retirement budgets hold up under stress. However, it’s a good idea to know what you’d do if things go south.

Frugal people aren’t afraid of a little work — and these days, retirees have many more options. Retail, obviously, especially during the December holidays when stores are looking for extra help. Some frugalists take on work in the field, such as consulting for their former employers or occasional tutoring in the subjects they used to teach.

Technology has created numerous ways to earn extra cash, sometimes without leaving the house. A free clearinghouse called SideHusl.com clearly explains each gig’s pros and cons — and the actual costs.

Note: Earning beyond a certain point may affect your Social Security.

5. Take Advantage of Medicare

Medicare will cover certain preventive services, such as periodic bone mass measurements, stop-smoking programs, and cardiovascular disease screening.

A frugal retiree knows it’s much cheaper to prevent a problem than to fix one. Now that they’re not working, they talk to their doctors about any tests that could help build a healthier life.

6. Look for Day Trips

“Travel” is a standard answer when you ask folks what they want to do in retirement. That’s a great goal, but only if you can afford it.

Frugal people research the best deals before they pack their bags. Sometimes, they learn that there’s plenty to see within a 50-mile radius. How many New Yorkers have never been to the Statue of Liberty? When was the last time a harried Los Angeleno took the ferry to Balboa Island?

Frugal people like to travel around the country and/or the world. However, their bucket lists include city parks, state historic centers, and national historic landmarks they had never visited during their working years.

7. Keep Cooking

Rising food prices are scary enough when you have a regular salary (plus the chance for some overtime). But on a fixed income, they’re terrifying.

Some retirees rely on restaurants because they’re sick of cooking. Frugalists may be tired, too, but they look for workarounds instead: Batch cooking, say, or focusing on easy recipes in the slow cooker or Instant Pot (appliances picked up at the thrift store or yard sale, of course).

The savings are considerable. A writer for CNET did the math (and the cooking!) for eight popular entrees. The result: They saved 50% on cooking vs. takeout and 75% on cooking vs. delivery.

8. Look for Senior Discounts

Frugalists love discounts, and they look for them everywhere: supermarkets, drugstores, movie theaters, live entertainment, transportation, hobby shops, and clothing stores.

A money-savvy retiree will search the phrase “senior discount” plus the item they want long before they open their wallet. For example, did you know that T-Mobile has a special rate for people over 55? Or that some cities offer a senior price break on property taxes? Some pharmacies will even cut old folks a deal on prescriptions.

9. Save an Emergency Fund

Financial problems don’t go away during retirement. It’s wise to be prepared. Money experts say you need three to 12 months’ worth of expenses in the bank at all times.

Frugalists know that it’s hard to have too much set aside. Of course, they also know to keep this fund in an online bank with a higher interest rate; some opt to put a chunk of it in short-term, higher-interest CDs.

10. Save for Major Expenses

The roof has served you well for a few decades but won’t last forever. Savvy retirees know they can’t stop planning for big-ticket items, such as home repairs or a replacement vehicle.

That’s why they make “major expenses” a line item in their budgets. From the first day of retirement, they’re getting as ready as anyone can be when faced with a bill for a big fix.

Note: Some opt to include this in their emergency fund savings. But don’t underestimate the impact of taking out the $10,000 average cost of a new roof all at once. Having even some of that money in a separate fund could ease the psychological pain of gutting your EF.

11. DIY All Day

Retirees may have less stamina than when they were younger — but now they can take their time. Instead of having to cram an entire deck-refurbishing project into a single weekend, they can power-wash one day, let it dry for a day, take another day to refasten loose boards and replace rotting ones, and finally apply a penetrating oil stain.

If you know what you’re doing, you can save a fortune by doing specific tasks yourself. Frugal folks will keep learning in retirement, watching DIY videos, and realizing how much they can accomplish. When it comes to home projects, there’s a lot of satisfaction to go along with the savings.

And if they can’t do it all? Then frugal people…

12. Plan for Renovations/Repairs

While you save for these projects, do some research. Ask friends for referrals and request estimates from those contractors.

Talk to the builder’s previous clients, to learn if they’d be a good fit. For example, you might discover that the guy did good work but took much longer than promised, disappearing for days without warning. In other words, there might be a reason his estimate is noticeably lower than the others.

Spending on your home isn’t just about money. It’s about peace of mind. Frugalists weigh both before deciding.

13. Prioritize Health

As the kids say, “Health is wealth.” Eating well, exercising, staying current on vaccines, and getting plenty of mental stimulation are crucial to maintaining a healthy life.

Frugalists will do it affordably: free tai chi in the park, a $10 monthly membership at Planet Fitness, yoga classes at the community center, or a DIY approach using YouTube videos. They’ll focus on healthy eating and make time for adequate sleep (afternoon naps feel great).

Keeping their minds engaged doesn’t have to cost a lot, either. Books are free from libraries, and tons of movies and TV shows are free online. Volunteering lets them make a difference in their communities while getting plenty of human interaction.

14. Download Shopping Apps

Many frugalists already have apps like Shopkick, Ibotta, Swagbucks, Pogo, and Shopmium. Those just now hearing about them will immediately download them.

These apps let you earn points by scanning items and/or receipts; the points can be turned into gift cards or, in some cases, cash. It’s often possible (but not required) to earn more points by shopping through the apps.

Combining them leads to some screaming deals. Here’s an example:

• Scan enough points to cash in for a gift card.
• You can use that gift card to pay for an item whose purchase gives you more points and is a featured deal on another app.
• Enter your free-with-gift-card purchase into the other app, and you can get some (or all) of that money back.

This way, you can get free toiletries, food, pet products, and other items, which is a huge budget-booster. Frugal nirvana: Sometimes, you even earn money.

15. Plan (Cheap) Activities for Grandchildren

Frugal people know that little kids like to do things that don’t cost much: play in the dirt, walk along the lakeside, and talk about their favorite superheroes.

Older kids may appear more high-maintenance, but this is your chance to be the adult figures who don’t ask about their grades or plans for the future. Instead, ask them what they love and ask them to explain why. You might hear way too much about memes or manga, but at least they’re talking — and you’re listening.

All ages can benefit from cooking/baking, a simple DIY project, or a chance to throw sticks for the dog. It might take a little time to detox them from their screen-filled lives. But frugal folks know the results can be priceless.

16. Get Needed Items Cheap (Or Free)

Technically, retirees don’t need as much stuff as young people; after all, they’ve had a lifetime to acquire the things they need or want.

But furniture wears out, dishes break, and clothing gets too shabby to wear. A true frugalist was probably already shopping at thrift stores and yard sales. Now that they’re retired, they have much more time to visit these places for replacement items they need.

The fortunate ones live in places with good Buy Nothing Facebook groups. Set up neighborhood by neighborhood, these groups let people give away or request the things they need — clothing, food, furniture, toys, appliances. It’s a frugalist’s dream come true: I can give away stuff I don’t need and get free things I do need.

17. Check out New Hobbies

Always wanted to decorate cakes, build birdhouses, or write your autobiography? No more clocks to punch means that frugal retirees can start a book club, learn to bake elaborate cakes or build that greenhouse from scrap lumber and old windows.

Bonus frugal points if the “hobby” carries benefits. For example, learning to garden results in fresh produce, and those birdhouses could bring in a few extra dollars from folks who want mosquito-eaters to nest on their property.

18. Create Housework Strategies

Cleaning your house and doing outdoor work can save you a fortune. Some retirees farm it all out, figuring they’ve earned a rest or because they can’t manage the labor any longer.

A frugal retiree looks at the big picture and then creates workarounds. If doing a lot of housework is too tiring, they compromise by doing 20 minutes daily. Once in a while, they hire someone to do a deep clean.

A self-propelled lawn mower (ideally bought on sale) simplifies lawn care, and mulch eliminates weeding. Buy the proper attachment for your shop vac or leaf blower, and you can clear rain gutters from the ground.

Here’s what an intelligent frugal retiree won’t do: Anything that endangers their health/life, such as pruning trees from a ladder or shoveling snow despite a heart condition. That $200 they saved won’t be worth it if they wind up in the ER.

19. Set Boundaries

Retirement can be a great chance to help others, such as picking up a sick grandchild at school or watching out for a neighbor’s Amazon delivery. However, frugal people are (or should be) wary of those who would turn them into unpaid personal assistants.

Some of these tasks are distracting, such as being available to let workers in and needing to stay there until the work is done. After four hours cooped up in someone else’s place, you’re tired and unsettled. (Bonus bummer points if this person regularly calls to ask for help.)

Helping others can also cost money, such as the extra gas spent picking up a grandkid after sports practice or the fast food they beg you to buy — which you’re too embarrassed to ask the parents to reimburse you for.

Other requests don’t cost much, but a steady diet of them quietly builds resentment. Frugal retirees have limited money and time to spend on others.

20. Plan To Keep Learning

The more you know, the richer your life. That doesn’t necessarily mean going back to school, though.

Frugal people know all sorts of ways to learn stuff for free:

• Read books.
• Watch how-to videos.
• Sign up to become a master gardener.
• Attend lectures.
• Audit classes for free at local colleges.
• Take free online classes through sources like MIT Open Courseware or Carnegie Mellon University’s Open & Free Course program.

Some people wait their entire working lives to pursue a secret passion for string theory or Shakespeare. Frugal retirees do it affordably.

21. Catch up on TV/Movies

Finally, enough time to watch that series everyone raved about! It’s your chance to revel in documentaries, anime, police procedurals, Korean horror, romcoms, or whatever floats your boat.

Screen time should be limited if it takes you too far away from everyday responsibilities (including your spouse or partner). However, all the free content and streaming services make TV and movies available and affordable. Pop some popcorn, and settle in.

22. Investigate Senior Services

Meals on Wheels, senior transportation, affordable housing, exercise classes, tax preparation, hot lunch programs, and the like can greatly improve a retiree’s life. Seniors use these programs to stay active and/or stretch a Social Security check.

Frugal retirees make it a point to learn what they might qualify for on a local and federal level. An excellent place to start is Benefits.gov, a clearinghouse for all sorts of helpful programs.

With luck, you’ll never need them. But it’s wise to know where they are.

23. Volunteer Strategically

People often say they volunteer to “give back.” But volunteering is also a great way to meet one’s own needs.

Socialization is a big part of this since some retirees become isolated. But volunteering lets you:

• Feel good about sharing knowledge (tutoring, teaching a skill)
• Do something you love (community theater, rocking babies in the hospital)
• Save money (spending time at the museum as a docent, seeing shows when you usher for local arts programs)

Giving back and getting back: That’s a frugal win-win.

24. Talk About Their Boomerang Kids

We’re having kids later and later, which means the offspring of a 65-year-old could still be figuring out life. In 2023, the Pew Research Center noted that one-third of U.S. residents aged 18 to 34 lived with their parents.

Wise parents factor this into the monthly budget. That could mean asking for rent and/or help with bills or asking the “kids” to take on household chores their aging parents find challenging.

Once retirement hits, though, frugalists get serious about the house rules. After all, they’re home all the time now, and it’s annoying to see an under-employed 30-year-old watching TV and eating cereal from the box at 2 p.m.

Not that there aren’t pushover parents among the frugal folks, mind you. Some might not ask for help. Generally speaking, people who are careful about their money — and realistic about how long they might need that money to last — are more likely to say, “No eating in the living room, remember? And weren’t you going to power-wash that deck for me today?”