During senior years, it can become challenging to manage finances and live on a fixed income for years to come. With the rising healthcare costs and other expenses, how seniors can maintain their lifestyle.
Below are some money management tips for seniors during their retirement years.
1. Limit expenses during retirement years. Most people are on a fixed income during those years so it’s important to save money where you can. If a senior no longer drives a car, there’s no point in paying for a car insurance. Also create a budget so you know where you are spending money.
2. Work with a financial advisor and he/she will be able to take the money from your savings and invest it so you can have funds for later years.
3. Prepare yourself for a time when you may not be able to manage your finances. Talk to an attorney about a legal document called “Power Of Attorney”. You will be able to designate one or more people who will be able to make decisions (personal or financial) on your behalf in the event you are unable to make them yourself.
4. Keep your important information (financial institutions and account numbers) in a safe place and let your loved ones know where they are so they can have access to it the event of an emergency.
5. Be careful when using credit cards. Debt can pile up pretty quickly and it’s even tough to pay it off during senior years with limited funds. Before using credit card for a purchase, ask yourself if you can pay it off when statement arrives to avoid paying interest.
6. Before accepting offer to advance your Social Security or retirement income, think twice. If you need to borrow money, check with your bank or financial institution. Also check the annual percentage rate of those products.
7. If you need additional money, consider using any of your existing skills or hobby into a part-time job. This extra income could affect other aspects of your finances such as Medicare or Social Security Benefits, so remember to check.
8. Never provide your personal information such as Social Security number, pin’s, passwords, credit card and bank information etc. via unsolicited email, fax or call.
9. Set up direct deposit in your bank. It is the fastest and safest way to receive income, pension or income tax refund.
10. Monitor your credit report at least once every 12 months, even if you don’t plan to take a loan or get credit cards. You’ll be able to spot any errors or mistakes and also detect identity theft.