Gen Xers are feeling the pressure to save for retirement. Many have lived through recessions, rising housing costs, and inflation. Even with careful budgeting, some sneaky spending habits can quietly chip away at retirement plans.
Small, recurrent expenses often add up over time. Clothing and footwear are two areas in which Gen Xers may overspend. While clothing is essential, impulse buys and frequent shopping can silently erode savings.
Subscription services are another culprit. Streaming platforms, premium music services, digital news, and fitness apps can seem inexpensive individually. However, they add up quickly.
Gen Xers should regularly review their subscriptions to ensure they only pay for what they genuinely use. Travel is a priority for many Gen Xers, but can lead to unplanned expenditures.
Sneaky spending habits to watch
Room upgrades, taxis instead of public transportation, and extra shopping can quickly blow the budget. Such expenses, if not controlled, can significantly impact retirement savings. Dining out and takeout are standard habits, but with food prices rising, they’re becoming increasingly expensive.
Takeout and food delivery services add extra charges, significantly increasing costs over time. These funds would be better allocated to retirement savings. While looking good and caring for oneself is essential, luxury beauty treatments and boutique products can drain finances.
Keeping these expenses in check is necessary to ensure sufficient retirement savings. Gen Xers also love gadgets—from phones and tablets to smart home devices and game consoles. The temptation to upgrade to the latest tech can lead to unnecessary expenditures.
Often, what is already owned is sufficient. Being mindful of these sneaky splurges and adjusting spending habits can help Gen Xers bolster their retirement savings and achieve financial readiness for their post-working years.
And, not to be a downer on Gen Xers — we ALL had to learn lessons on cutting the expenses at this age. Our costs were slightly different, but spending habits must be controlled to make the savings habit possible.