Retirement Retirement Planning

8 Budget Changes Retirees Wished They Made Sooner in Life

Don't wait until retirement to wish you'd done things differently.

By Summer Nevins

Edited by Esther Carlstone

Updated Nov. 10, 2025

Many retirees say it's not always the major money moves they regret, but the small habits they overlooked. Even the most financially savvy retirees agree: making the right moves for your retirement starts long before your golden years, and it's not enough to just avoid wasting money in retirement.

Here are some key budgeting changes they wish they'd made earlier, and how you can use their experience to build a stronger financial future before retirement sneaks up on you.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

Eating out less

Many retirees say they wish they'd cut back on eating out, because those frequent takeout runs and restaurant meals add up fast, often costing thousands each year that could have gone toward savings or paying down debt.

Cooking at home is the key. Learning to meal plan, cook simple recipes, or treat dining out as an occasional splurge instead of a habit could have made a big difference in their long-term financial picture.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Cutting back on internet, cable, and streaming services

Between streaming services, internet upgrades, and cable packages, small monthly costs can quietly balloon over the years. Many retirees now wish they'd cut back on entertainment expenses sooner.

Switching internet providers, bundling, or cutting the cord altogether could free up hundreds annually, which is money that can go toward savings or travel instead.

Not buying a new car

In 2025, the average cost of a new car is over $50,000. You can find a quality used car for half, or even a third of that price. Or better yet, stick with what you have.

Retirees often wish they'd driven their cars longer instead of trading up every few years. The savings on payments, insurance, and depreciation add up fast. Buying used or keeping a well-maintained car leaves more room in your budget for bigger goals.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Downsizing sooner

When the kids leave home, it's a natural time to downsize. Many retirees wish they'd done it sooner.

A smaller home means lower mortgage and tax payments, reduced maintenance costs, and cheaper utilities—savings that could've been invested or added to retirement accounts. Downsizing earlier also simplifies life, freeing up time and money for what truly matters.

Avoiding lifestyle inflation

As income grows, it's tempting to upgrade your lifestyle: nicer cars, bigger homes, lavish vacations, or frequent dining out, but the long-term impacts may not be worth it.

But many retirees regret letting spending rise with earnings. Keeping expenses steady, even as your paycheck grows, allows you to save and invest more during your working years, setting you up for a more comfortable retirement.

Saying no to impulse purchases

Retirees often wish they'd curbed impulsive spending habits earlier in life. Frequent small splurges on things like clothes, gadgets, or takeout can quietly (and sometimes obviously) drain savings.

Practicing mindful spending and waiting before making purchases can help you focus on long-term goals, like building an emergency fund or growing your retirement nest egg. A little tip: try sleeping on impulse purchases or take a 7-day evaluation period for large purchases.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Starting to save and invest even sooner

Many say it's not timing the market, but the time in the market. Time is your greatest advantage when it comes to saving for retirement. Many retirees regret not investing earlier, missing out on years of compound growth.

Even small contributions made in your 20s or 30s can grow significantly by retirement. The key is to start early, stay consistent, and let time work in your favor.

Prioritizing health care costs in retirement

Health care is one of the biggest expenses retirees face — many admit they've underestimated the cost of health care in their golden years. Setting aside funds for medical costs, long-term care, and insurance premiums can prevent financial stress later.

Also, building health-related savings early helps protect your retirement budget and ensures you're prepared for life's inevitable medical surprises.

Bottom line

Small financial habits can have a huge impact over time, and many retirees say it's those overlooked daily decisions that matter most. From cooking at home to downsizing and resisting lifestyle creep, mindful choices add up to more savings and less stress when planning for retirement.

According to the Federal Reserve Bank, the average retiree household spends nearly $58,000 per year — most of it on housing, food, and healthcare. Making smart budgeting choices earlier in life can help you manage those costs more comfortably later on.

More from FinanceBuzz: