1 in 4 US retirees lose sleep over their finances — 5 ways to shake that stress and save yourself $10K effortlessly

Saving money is challenging under the best of circumstances — and it’s even harder if you’re retired and living on a fixed income.

According to Schroders, about 25% of U.S. retirees have lost sleep over their finances, and 27% spend at least an hour a day worrying about money. (1) If you share those concerns, building even a small cash cushion can help ease the stress.

Here are five simple ways to save $10,000 with minimal effort.

Willpower is often the biggest obstacle to saving money — which is why automated financial tools can be such a game changer. In 2022, the Consumer Financial Protection Bureau found that automated savings apps can help consumers save 1.5 to 3.5 times more within a year of use. (2)

From rounding up everyday purchases to automatically harvesting tax losses in an investment portfolio, these tech-driven features can help you save consistently without constant effort.

After a lifetime of accumulating things, you may be sitting on “hidden cash.” Selling items that you no longer need or use can quickly unlock extra money.

According to a 2022 survey by MPB, the average American household has unused tech worth about $2,459 (3) — often old TVs, laptops, or cameras. You can also consider selling other high-value items, such as furniture or even a second car.

One of the fastest ways to boost your savings is by making short-term lifestyle adjustments. For example, moving to a city with a lower cost of living for a year or two could help you save $10,000 or more. Similarly, moving in with family could significantly reduce expenses.

According to AARP, many older Americans rent out a spare bedroom to offset housing costs and earn extra income. (4) As of 2024, the average spare room rents for $600 to $1,000 per month nationwide — and more than $1,200 a month in high-cost cities like New York and San Francisco, according to Coohom. (5)

While living with adult children or taking on a tenant may not be ideal, these temporary sacrifices can help you reach your savings goal faster.

Read More: Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself

One of the fastest ways to save toward $10,000 is by reducing recurring expenses. For most retirees, housing is the largest cost, accounting for roughly 36% of a typical retiree’s budget, according to Raymond James. (6)

Refinancing your mortgage to a lower rate or downsizing to a smaller home can quickly free up significant savings.

You can also cut costs on other recurring expenses, such as auto loans or medical insurance. Shopping around for better rates can save money each month, which adds up over the year.

Retirees are often advised to stick with safe investments like bonds or savings accounts. However, adding limited exposure to stocks or other growth assets can help you reach your savings goals faster.

For example, saving $200 a month could get you to $10,000 in about four years. Investing the same amount in the S&P 500, which has historically returned roughly 10% annually, could help you reach that target in about three and a half years.

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Schroders (1); Consumer Financial Protection Bureau (CFPB) (2); MPB (3); AARP (4); Coohom (5); Raymond James (6).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.