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Retirement often means living on a fixed income, so sticking to a strict budget is more important than ever. For some, this will require cutting back on certain expenses and strict budgeting to stay on track.
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Suze Orman, host of the podcast Women & Money and one of GOBankingRates’ Most Influential Women in Money, shares 1 expense every retiree should cut to stay on budget. I mentioned that there is one.
Here are some tips to help Orman keep your finances healthy during your golden years.
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The only expense you need to cut after retirement
Orman told GOBankingRates that there is one discretionary expense that can derail a retiree’s budget. Orman emphasized the importance of distinguishing between “needs” and “wants,” especially after retirement.
Read more: Want to cut your retirement expenses? Here’s the #1 thing to get rid of first
“That expense is eating out,” Orman said. “To have money, you have to learn to live below your means but within your means. How do you do that? It’s just buying the things you need and want.” What is a need? What is a need? What is a need? What is a need? Go to a restaurant to eat, and repeat that over and over again.
Reducing restaurant meals benefits everyone, not just retirees
Orman believes that whether you’re retired or not, you should eliminate or reduce eating out to save money. According to Orman, the number one reason for credit card debt is eating out.
“I appeared on the Oprah Winfrey Show in 2010, and basically what I’m saying is, if you want to save money, don’t eat out for six months,” she said. “Well, the restaurant industry went crazy, but do you know how many people wrote me after that and said, “Oh my gosh, Suze, you saved so much money.” I can’t even tell you. ”
Orman follows her advice even though he can afford to eat at a restaurant.
“I’m a very wealthy woman, so I never want to think about going out to eat,” she said.
Gabrielle Olya contributed reporting to this article.
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This article originally appeared on GOBankingRates.com: Suze Orman: This Is the One Expense You Must Cut in Retirement
