8 Easy Ways to Cut $100 (or More) a Month from Your Budget

By
Donna Freedman
• September 28, 2023

The cost of living continues to climb, and many older adults are finding that their retirement income isn’t keeping up. Ever-increasing inflation might mean you’re dipping more deeply into savings than you planned.

There are just two solutions to a budget shortfall: Earn more, or spend less. Because many retirees don’t want (or aren’t physically able) to return to the workforce, it’s necessary to cut back on spending.

That sounds scary, but it doesn’t have to be. The following tactics can help you find “extra” money in your budget. Depending on how many of these tips you use, you could cut $100 or more—maybe a lot more—from your monthly spending.

1. Cut medical and prescription costs

If you’re on Medicare, you might save money by signing up for Medicare Advantage, which bundles Medicare hospital, outpatient and prescription drug coverage through private insurance companies. Monthly premiums can be as low as $0. However, it’s important to weigh the pros and cons before making that decision. See What is Medicare Advantage? for more information.

The government’s Medicare Savings Program helps eligible low-income recipients pay for some or all of their Medicare Part A and Part B premiums and sometimes deductibles, coinsurance and copayments. Another government program called Extra Help helps low-income Medicare recipients pay Medicare Part D drug coverage premiums, deductibles, co-insurance and other costs.

Signing up for a prescription delivery service might save you money on maintenance medications. Plus, when you sign up for automatic refills, there’s no danger of forgetting to call in your prescription each month.

Total medical and prescription savings: possibly $137 to $165 per month
Medical costs in retirement vary from individual to individual. But because the standard premium for Medicare Part B is $164.90 as of 2023, savings could be that much if you qualify for 100% assistance.

2. Eliminate unused or under-used subscriptions

Magazines, monthly gift boxes, gym memberships, premium streaming channels—Americans spend a lot of money on subscriptions.

Often, that money goes to waste when subscription services are rarely used or are forgotten altogether. Month by month—and year by year, if you signed up for auto-renew—these subscriptions nibble away at the bottom line. Ask your bank if it offers a service that tracks your subscriptions, or consider an account monitoring service such as Carefull that flags recurring subscriptions and other money mistakes.

Total subscription savings: up to $219 per month (or more)
Once you’ve identified that amount, you might be horrified. Americans wildly underestimate how much these subscriptions cost, according to a 2022 study from C+R Research.

3. Reduce food costs

Here’s a sobering statistic: Almost half (44%) of our food spending is on meals away from home, according to the U.S. Bureau of Labor Statistics. That adds up to $3,459 per year, on average, or about $67 a week.

Feeding America maintains a list of food banks where you can get free food.
Total monthly food savings: $72 per month (or more) If you could cut restaurant visits by even one-fourth, that would mean a savings of almost $865 per year, or about $72 a month.

4. Get cheaper cell service

Take a little time to check out companies such as Mint Mobile and Consumer Cellular.

Total cell service savings: up to $30 per month (or more)
Savings will vary, but you might be pleasantly surprised by how much you’ll save.

5. Find affordable entertainment

Here are a few options to cut the costs:

• Cut the cable cord. Some streaming services are free.
• Senior discounts. Ask for them everywhere.
• Look for PWYC nights. Many performing arts companies offer a “pay what you can” night.
• Socialize at home. Board games, potluck, bridge tournaments, movie nights—whatever you and your friends enjoy.

Total monthly entertainment savings: possibly $79 per month (or more)
Taking only the cost of television into account, you could save $78.58 per month, on average, by cutting cable.

6. Reduce driving costs

Rising gas and insurance prices make these days out a lot pricier.

Total vehicle savings: $70 per month (or more)
Those aged 65 and older drive an average of 7,646 miles per year, according to the U.S. Department of Transportation.

7. Trim your energy costs

Total monthly utility savings: $18 to $45 (or more)
Using the tactics noted above, you can cut annual heating and cooling costs by 20% to 50%.

8. Watch your holiday (over)spending

Total holiday savings: $17 per month (or more)
If you can cut costs by even one-fourth, you’d save about $208. Divided by 12, that’s a little over $17 per month.

Bottom line

Cutting $100 or more a month from your budget might not be nearly as hard as it seems. By taking at least some of the steps above, you should be able to free up more cash to cover essential bills, pay down debt or even save for that dream vacation.

Donna Freedman

Former print journalist Donna Freedman has been writing about personal finance online since 2006. She blogs about money and midlife at DonnaFreedman.com.