Everyone has mixed feelings about aging. Some people can’t wait to grow old and sit out on the front porch, retired, without a care in the world. Others hate the idea that they’re growing old and can’t do all the things they used to. No matter where you fall on that spectrum, aging does bring about changes that you’ll have to adjust to. One of the biggest areas where this is true is when it comes to your personal finances.
Senior citizens are usually retired or are living on a fixed income. This means you may not have the same freedom financially as you once did. It takes diligence to stay on track financially and be able to live out your final days in peace without worrying about money and the cash value of every single purchase. But just because you’re trying to stay on track with your finances, doesn’t mean you can‘t still enjoy life with some fun merchandise and fabulous experiences. You just have to do it in a smart way.
The truth is, there are a lot of simple ways to cut costs and save you money, and as a senior, you can sometimes get discounts just for your age. Use your power! Shop smarter and look for opportunities to cut out extraneous spending. You may also be able to lower costs on outstanding debt or within your home. There are plenty of ways to find price adjustment opportunities that will help you stay on top of your finances in your golden years. Here are just a few tips for seniors to cut costs and plan efficiently when it comes to your money.
Lowering Home Expenses
If you still own a home, even if it is paid off, you know there are a lot of expenses involved in being a homeowner besides the mortgage. For example, utility costs can be expensive, especially during colder months with the need for extra heat. Electricity costs make up a huge portion of your bill, so you may want to consider shopping around to see if you can find companies that offer a price adjustment. These costs vary around the world, but there are always ways to find the best deal for you. For example, in Northern Ireland, there are specific calculators that will compare electricity prices in NI to find you the best provider for your electric bill.
Sure, you can try simple lifestyle adjustments like unplugging your outlets when possible and pulling out a blanket rather than turning up the head. But doesn’t it sound easier to find a lower rate than the original ticket price on your entire purchase upfront? For that reason, shopping around for electricity and utility providers may be a smart idea for you and end up saving you a significant sum of money.
Planning for Medical Expenses
As you age, your health may begin to decline. Plan for your medical expenses with insurance, Medicaid, or Medicare. You don’t want to compromise your physical and mental wellbeing simply because you can’t afford to pay your medical bills. Whether you come down with an illness or another medical need, be prepared financially to face the medical expenses that are often a natural part of aging.
Unfortunately, some people may get bad news of a terminal illness or chronic illness diagnosis. Treatments for these can sometimes be incredibly expensive. In these cases, you may want to explore viatical settlements. If you’re asking ‘what is viatical settlement‘, the answer is simple. A viatical settlement company gives you the opportunity to trade in your life insurance policy and will give you the cash value of your insurance policy to help you cover these end of life expenses. Rather than waiting for your death benefit, the life insurance policyholder can take advantage of a payout on their death benefit ahead of time and guarantee your family isn’t left with any financial burdens debts after your passing. If you think that a viatical settlement may be a good option for you, contact a viatical settlement company to learn more about how an accelerated death benefit can help you pay off any end of life expenses.
Shop Smarter
When you’re on a fixed income, it’s important to shop smart. While you may have been able to splurge and spend freely before, you now have a budget you need to stick to. You can save a lot just by making small adjustments. Choose generic over name-brand, rent books and movies instead of buying them, and try shopping at discount online stores or outlets for your select styles. You can still look fierce and fabulous with merchandise from the white house black market outlet without paying the original ticket price of the boutique.
Shopping smarter also means adjusting your habits. Can you carpool on outings to save on gas? Can you combine your phone plan with your families to lower your bill? What about drinking more water instead of soda? It’s all about saving a few dollars here and there because eventually, they add up to a good payout for you.
Negotiating Better Rates
Everyone has fixed expenses. You always have to pay to keep a roof over your head and put food in your belly. But some of these expenses can be negotiated. If you have outstanding debt, speak with your bank to see if you can have a lower interest rate after years of timely payments. You may even be able to refinance your home and save money there. Other companies may give you the opportunity to pay your fees annually for a lower rate than paying month-to-month. Take advantage of these opportunities and see where you can get better rates as you age.
Revisiting your Budget
Money and financial planning are forever evolving and changing. You should work to keep up. Every year, take the time to revisit your budget. See if you can continue to cut costs or if there are opportunities where you have extra money to spend on activities of daily living. Take into account the events of the upcoming year. Maybe you have a family trip you need to plan for or a surgery or medical expenses coming up. Whatever your specific needs, it can be helpful to consult a financial planner and reevaluate and adjust your annual statement and individual collections. Staying on top of your information is the most valuable thing you and your financial advisor can do together to lead you on the path to financial success.
Using Your Age
So many companies and organizations offer discounts to individuals simply if they’re over a certain age. Don’t be afraid to ask about senior discounts. Whether you’re going to a concert or buying an ice cream cone, you can save simply by flashing that ID. If you’ve got it, flaunt it, and those senior discounts are often worth flaunting your senior citizen status for.
Limiting Your Charity
Oftentimes charity organizations pry on the elderly. You have a caring heart and want to help everyone, but this can harm your own personal budget. No matter how all these organizations get your personal information or what human services they’re trying to do, you need to set a cap for your charitable giving. In addition, you need to set limits and boundaries on how much you’re giving to your own family. Of course, grandma and grandpa want to spoil their little ones, but set a limit. This can help you stay on top of your own money and still be generous.
Withdrawing Funds Effectively
Smart financial planning means you probably have a retirement account. As you withdraw money from an IRA or other taxable accounts, remember that you will have to pay taxes on that money when you begin to use it. This can be another place to consult a financial planner to find the best way to retain as much of your money as possible.
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