10 Top Ways Boomer Women Live Frugally in 2024
In the era of rising costs and economic uncertainties, many baby boomer women in the United States are embracing frugality as a way of life and leading the charge of setting and achieving financial goals in retirement. From managing daily expenses to investment planning, these thrifty individuals have adopted various strategies to stretch their dollars further, but some also look back at how they wish they had expanded past savings accounts or approached retirement plans differently.
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GOBankingRates conducted a survey to see just where retired women and working women alike feel they fall on the financially savvy scale.
When it comes to the boomer generation (60 to 78 years old), the results were eye-opening for their frugal lifestyle, both in ways to follow and ways to avoid. Here are some key takeaways from the findings and 10 tips for frugal living from boomer women:
Pay off your debt early: 31% of women over 65 still have the financial goal of paying off debt; 29% of women in the same age range find the cost of living to be the biggest obstacle blocking them from paying off debts.
Have an investment strategy: 60% of women 55 to 64 are not actively investing.
Cut discretionary spending: 73% of women 65 and older cut discretionary spending as their biggest way to live frugally.
Practice frugality with your food: 37% of women 55 to 64 buy in bulk as one way to save money on grocery costs.
Become energy efficient: 46% of women over age 65 consider themselves to be the lead decision maker for their household.
Change your bad money habits: 25% of women 65 and older say their biggest financial regret is not starting to save for retirement sooner.
Get help from financial advisors: 73% of women between the ages of 55 and 64 don’t utilize the services of financial advisors, accountants, estate planning attorneys or insurance brokers.
Downsize where you can: 24% of women 55 to 64 claim their biggest financial worry is not having enough money to retire, which means downsizing now can help you in the future.
Utilize coupons, discounts and rewards programs: 67% of women 65 and older say one of the tips they have for living frugally includes taking advantage of coupons and discounts whenever possible.
Stay thrifty: 30% of women 55 to 64 save by opting for used or secondhand items when buying clothing or household items.
Pay Off Your Debt Early
When possible don’t put off paying your bills or debts as early as manageable. This may seem like a stretch, but what you can pay off today saves you money in the future — especially when it comes to interest. A house loan or mortgage debt isn’t the only financial hole you need to dig out of — in fact, before you can afford to put a down payment on a home, there are two other big debt contenders to consider.
Using boomer women as a model from the GOBankingRates survey, here is a look at how debt is affecting women of that generation.
Credit card debt: 21% of women age 65 and older have $7,500 or more worth of credit card debt.
Student loan debt: Even after retirement age, 10% still have some of this debt.
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Have an Investment Strategy
Though it does take spending some money to make some money, the highs and lows of investing tend to also include high risk and high rewards. Once you assess your risk tolerance, be on the lookout for stocks, bonds, low-cost index funds and retirement plans to help your money earn more for you. Here are some ways to invest like frugal women.
Primary Investment Vehicle for Women 65 and Older
Brokerage account: 24%
Investing app: 3%
IRA: 8%
Work-sponsored retirement plan 401(k) or 403 (b): 8%
Not actively investing: 58%
Though diversifying your financial investments is advisable, the other types of investments should include those you put into yourself. For example, you can take financial literacy courses or learn new self-reliance skills like sewing, basic car maintenance or home repairs.
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Cut Discretionary Spending
Building a budget that fits your lifestyle doesn’t always mean you have to sacrifice everything you like. However, it can show you where you have wiggle room to cut back on things you don’t need or really even use.
Canceling unused subscriptions: Whether it’s on your cell phone or a streaming service, boomer women regularly review their subscriptions and cancel those they no longer use or need. In fact, 73% of women over the age of 65 cut discretionary spending as a way to live frugally.
Avoid impulse buying: Boomer women practice mindful spending, avoiding impulse purchases and taking time to consider whether a purchase is necessary. About 12% of women over 65 consider impulse shopping to be a bad money habit they wish to change.
Practice Frugality With Your Food
Food costs are an ever-straining factor on many people’s finances and monthly bills. A good way to cut back is to cook at home.
Boomer women are rediscovering the joy of cooking and preparing meals at home. Smart shopping also helps cut back on expenses, and many boomers live frugally by hunting for deals, using coupons and comparing prices before making any purchase, whether it’s groceries or big-ticket items.
Another frugal money move is to grow your own food. Small gardens or growing indoor herbs can reduce your reliance on store-bought produce. Not only do healthy habits make you feel better but they also save you money down the line in many ways. If you prioritize health through regular exercise, preventive care and healthy choices, it can lead to long-term savings on healthcare costs.
Another big savings tip to save money at the grocery store is to buy in bulk. About a third of women over the age of 65 use this method to save on food costs.
Become Energy Efficient
Many boomer women invest in energy-efficient appliances, use programmable thermostats and practice energy-saving habits to lower utility bills. Nearly 44% of women over the age of 65 worry about not being able to afford everyday expenses.
Reducing your energy consumption by following these examples is a great way to cut back on monthly bills:
Turn off any lights you aren’t using and switch your light bulbs to longer-lasting LEDs
Wash your laundry in cold water
Unplug all electronic devices when they are not being used
Upgrade old appliances to more energy-efficient ones
Make sure your house is well insulated to stop air leaks and reduce heating and air conditioning costs.
Change Your Bad Money Habits
A few bad money habits here and there can really add up down the line. For women over the age of 65, 46% don’t consider themselves financially secure. You can make all of the frugal decisions you want; but, until you correct your bad money habits, it’s going to be difficult to grow your wealth.
Worst Money Habits of Women 55 to 64
Impulse shopping: 12%
Not sticking to a budget: 10%
Only paying the minimum balance on credit cards: 17%
Ordering food delivery too often: 4%
Splurging on hair, nails or other beauty treatments: 2%
To help avoid overspending, you could take advantage of community resources such as libraries, free workshops and senior discounts to access services and activities at discounted rates or for free. You also can look into negotiating your bills; you may be able to get lower insurance premiums or interest rates by speaking with a representative.
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Get Help From Financial Advisors
Financial planning and working with financial advisors can help better prepare you for retirement and make informed decisions about investments and savings.
Here are some statistics on which money experts boomer women 65 and older use for their finances:
Financial advisors: 30%
Accountants: 15%
Estate planning attorneys: 10%
Insurance brokers: 11%
Don’t use any financial professionals: 58%
Downsize Where You Can
With 22% of women age 65 and over wanting mainly to just cover basic expenses, it follows that downsizing where you can is a good idea. It’s better to live leanly and frugally now to better set yourself up to live comfortably later. Here are some areas where downsizing could work for you and your wallet:
Embracing minimalism: Simplifying your lifestyle can help you save money and declutter your home. Focus on buying only what you truly need and value.
Carpooling and public transit: Opting for carpooling or using public transportation whenever possible helps save on fuel and maintenance expenses.
Live beneath your means: Some choose to downsize their homes, opting for smaller, more affordable living spaces that are easier to maintain.
Utilize Coupons, Discounts and Rewards Programs
Coupons and discounts may save you just a few dollars every time you shop; but, when you add it all up, what you save per month or year really can make some change. Nearly two-thirds of boomer women utilize coupons and discount codes as a part of their frugal lifestyles.
By using cash-back and rewards programs boomer women can maximize rewards and credit card benefits. It stretches out the money you were going to spend anyway.
Stay Thrifty
If you shop at secondhand, thrift or consignment stores, not only will it save you money on like-new clothes or household items but it also will help the environment by repurposing goods. By opting for used over new items you can cut way back on your expenditures. About 30% of women between 55 and 64 say they use this frugal method to save money.
Here are some more thrifty and frugal tips to save or even make some money:
DIY projects: From home repairs to crafting gifts, take on do-it-yourself projects to save on labor costs.
Secondhand shopping: Thrift stores, consignment shops and online marketplaces are go-to places for affordable yet quality clothing and household items.
Selling unused items: Decluttering isn’t just about getting rid of things; it’s also about selling unused items to make some extra cash.
Repurposing and recycling: Find creative ways to repurpose old items instead of buying new ones. Recycling is also a big part of an eco-friendly and budget-conscious lifestyle.
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This article originally appeared on GOBankingRates.com: 10 Top Ways Boomer Women Live Frugally in 2024
