Inflation a concern: Simple cost cutting ideas
Everyone is feeling the increased cost of inflation
...especially, retirees living on fixed income...
A visit to the grocery store, gas pump, Home Depot is quickly felt in the wallet. Food prices on many items have doubled (x2!). Gasoline is hovering around $3.87 per gallon, up $0.31 from last month. In some areas, cost of gasoline is $4.34 per gallon or more!!
Paint and many home improvement materials have literally doubled in price - for example paint that sold for $32.00 per gallon is selling for $56.00 and higher. Some stains approach $70.00 per gallon.
The cost of labor has also increased. An oil change, using synthetic oil, is $45-$70, or more!!
I requested a bid to re-paint the roof trim. The quote from a painter, who advertized that his prices were low, was $1900.00. When asked how long the job would take, his response was 4 hours!! Doing the math - that's ~ $450 per hour - for painting trim??!!
Auto maintenance shop hourly rates were high at $90/hour. Rates are now $130/hour or higher!! An electrician or plumber - $150/hour. According to Kelly Blue Book, owners now spend an average of $548.32 for a shop visit.
Importance of budgeting
One key aspect of cost cutting during retirement is budgeting. Creating a realistic budget allows you to track your expenses and identify areas where you can reduce costs. This could include downsizing your living arrangements, finding more affordable healthcare options, or even making small changes in daily habits that add up over time.
Simple things that can make a real difference in offsetting inflation and reducing your expenses:
Shopping:
- Shop with a list. Don't spend money on things that you do not need.
- Don't just spend because the items is "on sale." Buy "store brands".
- Make Use of Coupons: Coupons are a great way to save money on everyday items. Look for coupons online, in newspapers, and even on the products themselves.
- Use "Rewards Programs"
Groceries:
- Shop the grocery sale adds. Our local "Carrs/Safeways", offers greatly discounted prices on $5 Friday. Fred Meyers places their perishables on discount. Buy items in "case lots" when on sale.
- Merchants that offer "cash back" programs
- Use "price matching apps". For example, "instacart" or "price cruncher" or "flash food" (Source: U.S. News & World Report. "How Much Should I Spend on Groceries?")
- Use your leftovers
The following is from: "How to Save Money on Groceries in 2023".
"You know the feeling. The grocery store clerk rings up your purchases, and you have a knot in the pit of your stomach when you hear the total."
Simple Ways to Save Money on Groceries
1. Shop at a Different Grocery Store
2. Use a Rebate App
3. Choose Generic When it Makes Sense
4. Plan Your Meals
5. Use a Shopping List
6. Buy "Loss Leaders" (Items that are deeply discounted to attract customers)
7. Use a Cash Back Credit Card
8. Try Grocery Delivery
9. Don’t Always Buy Organic
10. Avoid Pre-Packaged Foods
11. Buy in Bulk, but Sparingly (important to avoid waste)
12. Always read "Unit Pricing"
13. Know Where to Look
14. Shop Your Pantry
15. Eat Before You Shop
16. Eat Leftovers
17. Join Loyalty Programs
18. Check Out Clearance Racks
19. Shop By Yourself
Vehicle Maintenance:
- Change your own oil. Walmart Supertech Synthetic Oil is $18.98 for 5-quart container. Walmart Fram Extraguard Oil Filter is $5.24. $25 vs $70 or more!! (Always follow your car manufacturer's recommended oil change)
- For simple auto mechanical repairs, locate a qualified mechanic who works out of their home. Your local auto parts store may have information on local mechanics. If you vehicle is under warrantee, follow your manufacturer requirements.
- Shop around on the internet for discounted prices on "after-market" auto parts.
Home Upkeep:
- Re-painting your roof trim? Purchase an extension pole and an adjustable adapter for brush and roller and complete the painting yourself. The extension pole is much safer and faster than working off a ladder! Use a roller guard with guide to keep paint off your shingles or metal shingle trim. Cost: 1 gallon paint ($45), 4" brush, 2" brush, roller, extension pole = <$100 vs. $1900!
- Rather than replace your deck, use "Deck Restore" or "Deck Recover", a thicker, exterior paint manufactured for decks that will help your deck look more like "new". 2 gallons Deck Recover @ $40/gallon = $80 vs. several thousand dollars to replace the deck. Difficulty kneeling? Use a short extension pole with brush adapter.
Home Items:
- Purchase items wholesale online from a trustworthy site. As added security, use PayPal for payment.
Entertainment:
- "Rent" movies on-line free or as low as $1.99-$2.99 through Amazon Prime or similar site. Their annual fee can be easily covered by movies-on-line rentals.
Appliance Repair:
- Complete simple repair of your appliances and household items. YouTube has amazing, DIY videos on repairing most anything!
Fuel Price:
- "Gas Buddy" will search for lowest local gas pump price!
Transportation:
- Use public transportation - bus, train.
Vacation:
- Vacation? Travel during "off season" when rates are at their lowest. Look for sales on end-of-season "all-inclusive cruises."
Renting a car?
- Consider "Turo".
- Rent in the "off season".
Senior Citizen (and Military) Discounts
- Ask for Senior Citizen / Military Discounts
- Some states/counties have discounted Property tax for Senior citizens
- Grandchildren's sporting events
- Entertainment
- Home Depot / Lowes
CALL TO ACTION: With a little research, ingenuity, creativity and "elbow grease" - cost cutting can offset inflation.
RESOURCES THAT MIGHT BE HELPFUL..
Retail reality: Food prices are expected to rise 7.5% this year — here are 10 things you should never buy at the grocery store if you are trying to save on necessities (msn.com) Sara Louis Money Wise.
How to Save Money on Groceries in 2023. Are you struggling to keep your monthly food costs in check? Here are 19 easy hacks to save money on groceries without sacrificing quality items. John Schmoll. 19 Top Ways to Save Money on Groceries in 2023 - Frugal Rules
SO...What'd we miss??
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