7 Money Saving Tips for Seniors on a Fixed Income
There are numerous money saving tips for seniors which are of advantages if followed. After having spent a large part of our life working and saving, it is time to make good use of that little mattress that we have created for our golden years.
The idea is that we can live with a good quality of life and also we can indulge ourselves with a whim from time to time. Older people have a lot to think about when it comes to finances. Retirement, pensions, insurance, bills – it can seem overwhelming. But it is essential that we continue to monitor and manage our money as we move through life so that once we reach old age, we are as financially comfortable and worry free as possible.
One study found that 85% of older people (ages 51 to 75) had no financial plans for their own care which is why money saving tips is essential. This troubling statistic may reveal an unwillingness to think about our most important future needs until it’s too late. All of our circumstances are different, so it is important to develop and put in place a realistic financial plan to establish our expected income and expenses.
7 Money Saving Tips for Seniors
To help you plan for your future, we’ve put together some money saving tips and how we can organize our finances and make the proper use of our money.
Plan your income
This is an important money saving tip. It is very important to have a notebook for planning income and expenses. It is a way of being able to prevent and control the money that we are going to need or that we are going to use during our day to day.
An easy way to write our “financial balance” is, for example, to use three columns: in the first we will write down all the expenses that we have planned and those that arise during the month, such as: food, hygiene, medicines, cleaning , care and support staff, etc. In the second column we will write down the income, such as: retirement, life pension, fixed-term income, among others. And in the last column we can write the savings that will be a fund for sporadic expenses such as travel (indoor or outdoor), spa sessions, among other treats that we want to give ourselves.
Think about investment
Investment is another money saving tips. Investments can be a good way to ensure a stable income or a lump sum after retirement to help ease financial constraints. The 2015 pension freedoms allow anyone over 55 to take control of their own savings and manage it however they want. Here are some important things to know about investing for seniors:
I. Risk: Having your money in a bank savings account is a safe bet, with little risk involved, but the interest rate will generally not exceed inflation. In other words, your savings will lose value over time.
Looking to take a position a number of your money could seem sort of a risk, but it could lead on to more valuable income. Remember that the higher the return you want, the more risk you will have to accept.
II. Types of funds: Low-risk bonds issued by the government, can generate income of perhaps 2% to 3%. Greater risk comes with Equity Funds, which are investments in company stocks. These can increase your income through the payment of dividends.
III. Diversify: It is commonly recommended to spread your money across different types of investments, as this helps reduce the risk that your overall investments will underperform or lose money. For example, in stocks, you can distribute your investments between large and small companies.
Many different providers, offering different specials and using jargon that we just don’t understand. Life insurance can get complicated and very expensive as we age but it’s also another important money saving tips. Travel insurance also costs much more, and travel insurance also becomes more expensive as you get older.
Because in the eyes of an insurer, you are more likely to make a claim as you get older. There is a life insurance policy to protect your family and loved ones, who depend on your income after your death. Payments from these policies can be used to pay off outstanding loans and mortgages.
Save on your bills
Bills are not pleasant at any point in life, but they can be an additional concern for seniors and their loved ones. Energy bills, rent or mortgage payments, and food bills are major regular expenses and need to be taken care of as they have a huge effect on your financial situation. As we age and our income declines, it is important to make sure we spend as little as possible on our energy bills.
Since older people often live on a fixed income after retirement, a fixed rate energy tariff might be a good option. Many energy companies offer discounts if you get gas and electricity with them, but it is very important to compare prices in the energy market. Saving on your bills is another vital money saving tips.
Good expense management
Carefully take care of the savings made during working life, since the money we have after retirement will be what we will use to live this period of life. Managing your expenses properly is also an important money saving tips. That is why good expense management or planning is essential to put this income to good use.
Maintain a good organization of the documents, this is essential to be able to have at hand all the important information such as: bank account number, users and access codes, health and life insurance contracts, bank contracts and bank statements and other financial documentation.
For this we can have a folder or a filing cabinet in which we keep these documents together and classified. This is also termed as money saving tips.
Scaling back to a Smaller Place
This is another money saving tips for seniors. While relinquishing your family home may accompany some clashing and even upsetting minutes, moving into a more modest space can assist you with getting a good deal on utilities, home loan, and mortgage holder’s protection.
You can likewise utilize the pay from your home deal to contribute, pay month to month lease at a free living place, or give an initial installment or full installment on another, more modest home.
Money in a life-saving device
Good financial advice for seniors would be to invest in personal alarm service. Having an alarm means that you can continue to live in the comfort of your home, rather than having to pay to be in a nursing home. It also helps give your friends and family the peace of mind knowing that someone will help you if you are sick or fall. This will save cost and therefore is also a vital money saving tips.