Where Are Baby Boomers Cutting Their Spending?

The past twelve months have been hard on baby boomers to say the least.  Boomers have seen their retirement accounts cut in half with the cost of living increasing each and every day.   When time get tough, boomers have to change their ways and try to adapt.   Most boomers have resorted to cutting back their spending to try and save  a buck.  Here are the areas that boomers have cut their spending the most.

1. Reduced spending on entertainment: 79%

Most boomers are cutting back on watching movies, ball games, plays and anywhere that can be watched at home.

2. Reduced number of times you eat out: 75%

If they are not going out to enjoy entertainment, then cutting back on eating out follows right along.   Boomers find it cheaper to cook at home and spend quality time with the family.

3. Found it more difficult to pay for essential items such as food, gas and medicine: 57%

Everybody is being affected by the recent economic downturn.   Cutting back on the unnecessary items helps, but many are finding it hard just to pay for the items they need day to day.

4. Postponed plans to travel: 63%

The family vacations have been put on hold.  If a trip was planned, most have opted to postpone until things get better.

5. Found it more difficult to pay for utilities such as heating, cooling or phone service: 48%

Times like this is when you have to sit back and analyze how much  you are actually spending a month on all your services.  Areas to cut back could be your Internet, cell phone and satellite bills.

6. Stopped putting money into 401k, IRA or other retirement accounts: 35%

Face it, it’s hard to save for retirement when you can’t even pay your water bill.  Plus, most investors are so discouraged with the steep losses in their 401k that they would rather pay the tax and put it in their savings accounts.

7. Postponed paying some bills: 35%

Sometimes things have to be put on hold, until you can get back on track.  Make sure to postpone the bills that will carry the least amount of penalties and charges.  If the situation doesn’t get better, it might be time to have a talk with your creditors and let them know of your situation.

8. Premature withdrew funds from your 401k, IRA or other investment: 15%

When times get tough and you need money, the 401k can be an easy choice to tap. Despite paying tax and penalty, many boomers have no other choice.

9. Had to rely more on family or friends to help you make ends meat: 20%

Sometimes you have to swallow your pride and reach out to those around you.   But don’t be a pest about it.   You have to be willing to show them you’ll do whatever it takes to cut back your spending to be able to pay them back.

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