Every decade of your life presents a unique challenge when it comes to saving money. As a senior, you’re more than likely have some financial stability or knowledge that eluded you in your youth. Even so, there are ways you can boost that rainy day fund.
Whether you’re already retired or just want to plan ahead, the following 4 tips will help you plan and save. Read more below to learn little things you can do to make finances easier in your 80s.
Before you even hit 80, chances are that you’re thinking of life insurance or already have a policy. This is a good move and can provide you and your loved ones with a sense of security. However, not all insurance policies are suitable for seniors.
Most seniors over 80 choose a final expense life insurance. This type of policy is often a good investment and will usually let you get the most for your money. On the other hand, some seniors opt for term life insurance policies. This type of policy has an expiration date which can result in you losing your investment in the long run. Look into both to see what is right for you.
To enjoy comfort and luxury, sometimes people accrue expensive habits that take a few decades to work through. There’s nothing wrong with enjoying your hard-earned money and, as a senior, it’s likely that you don’t have as much debt holding you down. However, you should make sure your regular spending habits are really necessary.
Is that snack or drink you usually get on certain days of the week a good buy? Should you go into that shop where you know you’re prone to overspending?
If these things bring you joy and don’t hurt your finances, go right ahead, but make sure your habits aren’t just done for the sake of familiarity. When possible, try seeing if there are more affordable versions of the things you usually buy.
You should still be able to enjoy making new memories abroad in your 80s but, unfortunately, many seniors turn away from travel to save money. The costs or stress of travelling alone can easily become overwhelming. Planned holidays may even be cut short as your funds run lower than expected.
To avoid missing out on the fun and losing the health benefits of occasional travelling, try finding a companion or loved ones to go with you. Not only will this save money for everyone, but it’s also a safer way to create beautiful memories.
Everyone tends to have appliances or issues in their home that are more costly than necessary. Even if you can afford a pricier energy bill, you shouldn’t have to waste your money for little in return.
Try looking for small things around your home that can add up, such as unused appliances that should be unplugged or turned off.
As a senior, you shouldn’t have to use crazy schemes to increase your savings. Just as you would in your 30s or 50s, check your expenses to see where you can cut back. Think outside the box and consider new ways to add to your rainy day fund. Also, don’t hesitate to consult with loved ones to see if you can save more together.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.