We all know that a healthy financial picture is important, and that requires planning. But as seniors approach their golden years, it can be challenging to keep up with money management. Perhaps retirement expenses were underestimated, or most available funds had to go towards unexpected events. Either way, financial burdens can weigh heavily on seniors’ lives. Luckily, Kaplan Development Group has identified a few simple steps you can take to ease your worries.
Deal With the Fixed Income Issues First
Consistent money coming in each month can feel like a luxury once you approach retirement. It offers a sense of security while also helping save for the future. The fixed income state of retirement can be a challenging problem to deal with – especially if you didn’t save enough to support your lifestyle in the first place. There are a few ways you can address this: one option is to take all the money you have and put it in an account with a high-interest rate (8% or above). Consider taking on part-time work to supplement your retirement fund for more immediate concerns. Another option is to take out a temporary loan to offset a significant expense. Refinancing a mortgage to free up cash for living or medical expenses is another option. Before determining the best course of action, be sure to research various refinancing options available.
Focus On Self-Care
Financial worries will come and go, but you need to have a mechanism to relieve the stress of worrying. Keeping your cool through the economic tension will be vital in making it through with ease. Prioritize activities that bring you happiness and foster relaxation. Whether it’s long walks with friends, completing a crafts project, or reading a book, self-care activities will be there to support your burdens just as much as financial strategies.
According to the Spruce, downsizing and decluttering is a highly effective way to ease stress and organize your life. An added benefit is making a little extra cash by reducing your belongings! Go through your items and sort them into different piles for keeping, throwing/giving away, and selling. You may find that you have items of value just sitting around your house that you can make a little extra cash from. Post listings on platforms like Craigslist or Facebook Marketplace to sell the items. You could also distribute flyers and posters and hold a community yard sale.
Use the Resources Available to You
If you happen to run your own business, it’s essential that you do everything you can to maximize profit. To make sure your customers are always paying you on time, you will need to be proactive and keep precise records. You can make this a lot easier by using an invoice generator. Also, you can save money on advertising by utilizing free social media services.
As a senior, you’re likely eligible for a range of income assistance and home support programs, as well. One obvious one is pension. This will have monthly income coming in, which can be a massive relief in retirement. Explore other options like supplemental security income (SSI) as well as USDA housing repair grants. The U.S. Department of Housing and Urban Development offers several programs for low-income older adults requiring assistance in supplementing their income. There are a lot of resources available to you, so do your research and be sure to utilize them to your advantage.
Cut Back on Expenses
If you’re no longer a salaried individual, the chances are that you’re living above your means. You’re going to have to cut back on expenses here and there so that you’re not blowing through your retirement fund all at once. Following are some easy ways to cut back on living expenses:
- Use public transportation instead of driving
- Find a smaller home for your needs or a cheaper rental
- Shop wisely
- Watch your electricity consumption for a lower monthly bill
With fixed incomes and rising expenses, many older adults can find themselves in a position of financial strain. Whether it’s medical bills, inflation and rising costs, or other unexpected circumstances, it will be critical to keep your cool and work your way out of your financial troubles. You’ve got this!
Kaplan Development Group owns and operates senior living communities around the Eastern Seaboard of the United States. Although every Kaplan community is different, they all offer innovative programming, engaging activities, comfortable apartments, and a commitment to quality and professional service. We’d love to hear from you!