Many older Americans grapple with the challenge of maintaining financial security on a fixed or limited income during retirement, especially as the cost of living, including health care, continues to rise.

However, with a few smart-money management strategies, you can be better equipped to effectively create a budget and manage your debt, in turn taking control of your finances and gaining greater peace of mind.

Assess your income and expenses

To start, it’s essential to know all the factors that will influence how you allocate your money each month. Even if you have an existing budget, reevaluating these categories will help ensure that you haven’t overlooked any recent changes in your funds or expenditures that may require some adjustments.

First, tally up your total income, whether it comes from social security, a retirement account, a job, or another source. Then note where it goes: fixed expenses such as your mortgage, debt, and insurance premium payments; variable expenses including food and utilities; periodic costs like maintenance, repairs, and property taxes; and discretionary spending for clothing, travel, entertainment, and gifts. With a clear understanding of how much money you have to work with and what you need to put it toward, you can better build or tweak your budget to meet all your needs.

Create a budget calendar

Now that you have your budget established, your next step is to monitor how well you stick to it. A good way to do this is by tracking your income and expenditures with a budget calendar—you can note upcoming paydays, bills, and purchases and record transactions as you make them. This will allow you to stay on top of deadlines and assess your spending in real time so you can see if anything needs to be adjusted. You can also consider consulting with an accountant or financial advisor to help target areas where you can reduce your expenses or even capitalize on assets you may be able to monetize, such as the equity in your home.

Reduce day-to-day costs

Though some expenses are more significant than others, even the smaller ones can add up, affecting your intended budget. Here are some simple ways you can cut back in your daily living.

Rethink your telecommunications
If the fees associated with your TV, phone, and internet services are starting to feel exorbitant, reassess your needs to see where you can cut costs. For example, you could check with your providers to see if they offer specials for adults over fifty-five or look into bundling all your services together rather than paying for them individually. You may also find it cost-effective to replace cable with streaming services or a streaming device such as the Amazon Fire TV Stick. And if you find you use your cell phone more than your landline, it may be time to simply cancel the latter.

Meal prep wisely
Dining out can be expensive, making home cooking generally more budget friendly (even with sky-high grocery prices). Whenever possible, plan your meals at the start of each week so you can optimize your grocery budget and avoid the costly last-minute rush of having to go buy something to eat. Keep costs low as you shop by using store coupons, looking for sales, and comparing prices between well-known and off-brand items—the lower-cost brands can be just as good as the more expensive ones. Finally, be mindful of purchasing too much at one time to prevent throwing away expired foods.

Monitor utilities
If high utility bills are cutting into your budget, evaluate your usage to determine where you could potentially save. For example, your energy bills will naturally be higher in winter and summer, but there are still several strategies you can use to help reduce them, including:

• Adjust your thermostats 7 to 10 degrees warmer or cooler (depending on the season) when leaving your home and going to bed.
• Check that your windows and doors are sealed tightly to prevent outside air from entering your home.
• Use LED lights to save on energy costs, and turn off lights in rooms that are not in use.

Seek out senior discounts 
Explore savings on everyday expenses such as groceries, food, and entertainment to increase your discretionary income; sites like the Penny Hoarder can help you unearth these types of discounts. In addition, take advantage of programs like SilverSneakers, which offers reduced gym fees or even free memberships, GoodRx to save on prescriptions and other health-care items, and AARP for prescription, vision, and hearing discounts as well as savings on travel and entertainment. And don’t be shy—when in doubt, ask a retailer or service provider if they offer a senior discount.

Evaluate your home affordability 

Given the impact of inflation and rising taxes—both real estate and federal—it can be challenging to manage household costs, especially on a fixed or limited income. Luckily, there are many money-saving solutions in this area. For instance, some states offer a property-tax exemption for those aged sixty-five and older. If you have equity in your home, you could also consider tapping into it through options like a reverse mortgage or a home equity loan to help cover expenses. Finally, downsizing may be a viable option if your mortgage, taxes, and upkeep have become a financial burden.

Review insurance and health-care costs

Are you paying the right amount for your insurance? This question is especially important for older adults, as navigating different policies like life, health, Medicare, prescription drug programs, and long-term care can be complex—and expensive. To help manage and budget for these potential costs:

• Ensure that you have the right coverage at the right price.
• Look into Medicare Savings Programs; depending on your income, they may significantly reduce premiums and copays.
• Partner with an insurance specialist, who can review your policies annually and suggest adjustments to avoid unnecessary out-of-pocket expenses. This is especially valuable if there has been a change to your health, marital status, or location, all of which can affect your premiums.

Assessing your budget and how you can more effectively allocate your funds can help keep your finances in check and create greater stability through your retirement years. Consider seeking out the assistance of a financial advisor, who can assist you in planning and sticking to your financial goals.