Believe it or not, there are a number of ways you’ve slipped into the habit of spending money you can easily save with a little effort. Before you retire, let’s look at the most common ways you may be unnecessarily wasting money.
Heating & Cooling Your Home When Everyone Is Out
You don’t need to keep the house toasty in winter or cool in summer when everyone is out working. In fact, according to the U.S. Department of Energy, you can save as much as 10% on your heating and cooling bills by adjusting your thermostat 7° to 10°F from its normal setting for 8 hours a day. When you consider that you spend more than $5,000 per year on utilities, the savings are considerable. If you tend to forget to adjust your thermostat, consider getting a programmable thermostat.
Wasting Money On Premium Gasoline
If you check your owner’s manual there’s a good chance your auto manufacturer recommends regular-grade gas, not premium. If that’s the case, you’re likely wasting up to $1 more per gallon. Since most cars have a 12-gallon gas tank, this means you’re wasting $12 every time you fill up. You can also save on gas by making sure your tires are inflated correctly and using the manufacturer’s recommended grade of motor oil. Of course, taking your car in for a tune-up can also help improve your gas mileage.
“In some cases, the cost of the extended warranty is just as much as paying for a repair out of pocket.”
Purchasing Unnecessary Extended Warranties
Purchasing an extended warranty on a pricey appliance or even a new car may be tempting but the biggest drawback is the cost. A regular manufacturer’s warranty will fix or replace an item if it breaks during a specified period of time and this is usually all you need if you find you’ve purchased a lemon. Extended warranties also have a time limit in addition to exclusions like accidental damage or misusing the item. In some cases, the cost of the extended warranty is just as much as paying for a repair out of pocket.
Auto-Pay & Auto-Renew Subscriptions You Forgot To Cancel
Your credit cards and debit cards may be charged every month for subscriptions you no longer use. A 2022 study conducted by C+R research found that 42% of consumers had forgotten they were still paying for a service they no longer use. And, on average, they underestimate what they spend on monthly subscriptions – the study reports a monthly estimate of $219. That’s over $2,600 per year that you could be saving for your retirement.
To learn more, connect with an FRC® trained advisor.
