Aging comes with a lot of financial challenges that can be difficult to navigate. With rising healthcare costs, limited retirement savings, and Social Security benefits that may not be enough to cover basic living expenses, it’s more important than ever to have a solid financial plan in place.
If you’re approaching or in your golden years, here are 4 feasible financial tips for you.
Spend on Healthcare
One of the biggest financial concerns for seniors is healthcare costs. Many retirees have gone into debt to cover medical expenses. Spending on healthcare before you need it is a great preemptive action.
For instance, one way to prepare for rising healthcare costs is to invest in a good health insurance plan.
Another way to offset healthcare costs is to set aside money in a dedicated account, like a Health Savings Account (HSA). HSAs are tax-advantaged accounts that can be used to cover qualified medical expenses, including things like doctor’s visits, prescription drugs, and long-term care.
Create a Budget
It’s important to have a clear understanding of your income and expenses at all stages of life, but it becomes even more crucial in old age.
If you’re not sure where to start, sit down and create a budget. Track your spending for a month or two to get an idea of where your money is going.
You don’t have to do this manually either. There are numerous apps and software programs that can make budgeting easier.
Once you have a good handle on your spending, you can start making adjustments to ensure your money is going where you want it to. Look for ways to cut back on unnecessary expenses so you can free up more cash.
For instance, it may be a good idea to downsize to a smaller home or move to a more affordable location. Moving to an assisted living facility for example can help reduce your housing costs while still providing you with the care and amenities you need.
Start an Investment Portfolio
Investing is one of the smartest things you can do with your money. No matter your age, it’s never too late to start.
There are a variety of investment options available, so it’s important to do your research and find the right fit for you.
For the elderly, it’s best to opt for low-risk investment options. These types of investments may not offer the highest returns, but they’re typically more stable than stocks and other higher-risk options.
Automate Your Savings
One of the best ways to ensure you’re saving enough is to automate your contributions.
Forgetfulness is an unfortunate reality of getting older. By setting up automatic transfers from your checking account to your savings or retirement account, you can make sure your money is going where it needs to, even if you forget.
You can typically set up automatic transfers online or through your bank’s mobile app. If you’re not sure how to go about automating your savings, talk to a financial advisor. They can help you set up a plan that meets your unique needs and goals.
By following these tips, you can ensure you have a solid financial foundation in place. This will give you peace of mind and help reduce stress as you enjoy your golden years.