Once you turn 50, you’re officially supposed to put any extra money you have into your retirement accounts. But those extra dollars have to come from somewhere. Here are eleven expensive habits that three experienced financial planners who answered our questions suggested people ditch before turning 50. Which one of these would you drop first if you had to?
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Rotating luxury leases every three years
The smell of a shiny new SUV disappears rather quickly…but the lease payments don’t. Cycling through luxury cars every three years will cost you in delivery fees & return charges, as well as constant increases in car price & insurance. The worst part is that you never actually own anything.
Stacking premium travel cards you don’t fully use
Having two or three elite travel cards in your wallet sure sounds glamorous. However, those annual fees will pile up, whether you’re flying or not, and your lounge passes will expire. Your credits may also go unused & sometimes you’ll pay for the same perks twice. Unless you’re traveling like a flight attendant, having one good card is usually more than enough.
Treating variable universal life like an investment account
Unfortunately, many people were sold on the idea that life insurance policies work as retirement savings. The reality is that the fees grow higher as you age & the investment options are often stuck behind a plain index fund. You may want to rethink it if you’re still putting money into one when you turn 50, or at least give a hard look at what you’re actually getting.
Grocery shopping without a list and buying extras
Your kids are usually out of the house once you turn 50, yet your grocery cart hasn’t gotten the memo. Old habits often involve buying jumbo packs & snacks nobody eats anymore. Don’t forget about the duplicates of things you already have in the pantry. What’s the point? Start writing down a list of what you actually need to avoid wasting food & money.
Maintaining the “vacation every break” tradition
Annual spring break & winter trips make sense when your kids’ school calendar dictates everything. But by the time you’re 50, your kids are older and may have even moved out, so there’s no point in doing trips at the same time. It doesn’t matter what “tradition” says. The truth is, make your travel plans intentional, rather than automatic because the calendar says so.
Keeping old storage units indefinitely
Most of the time, storage units start as a “temporary” solution during a move or when kids leave for college. And then you turn 50. Soon enough, you realize you’ve been paying for years without opening a single box, meaning you’ve spent hundreds of dollars a month on stuff you don’t even use. Turning 50 is the perfect time to clear it out and redirect your cash.
Over-scheduling medical testing without need
There’s no doubt that preventive care is smart. However, so many people start piling on every optional test when they turn 50, like full body scans or extra labs, simply because they’re offered. But most doctors recommend spacing these out. Rather than paying out of pocket for tests you don’t actually need, you should follow a real schedule.
Staying with out-of-network doctors out of routine
That’s not all for medical care. Unfortunately, doctors you’ve seen for years might no longer be covered under your plan, although the habit of keeping those appointments feels comfortable. You’re likely seeing doctors more often when you turn 50. As such, higher deductibles & out-of-pocket fees will use up your savings quickly, so it’s worth making the switch now.
Upgrading wardrobes seasonally out of habit
Your career years usually involve buying new suits every fall & fresh shoes every spring. It’s a different story at 50. At this point, your job probably stops demanding a rotating wardrobe, but seasonal shopping trips may become automatic. It makes far more sense to buy stuff only when it needs replacing, rather than continuing an old cycle.
Hosting every holiday & paying for all the extras
It’s second nature to be the host for every event by the time you’re 50. You likely cover the catering & décor, as well as the rentals & grocery bills every year…but that’s not good. People get used to you covering everything. You should try rotating hosting duties or asking guests to pitch in because footing the bill for every celebration just isn’t sustainable.
Always being the one who closes every group tab
Similarly, years of work dinners and family outings make it an instinct to hand over the card each time. But at 50, those moments when you say you’ll cover it may run into the hundreds every month without you noticing. It’s fine to treat occasionally. Just don’t make it the default. Try splitting checks or alternating who pays so you can keep things fair.
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