13 Lessons To Become Financially Secure For Baby Boomers
Getting older presents its own set of challenges related to your health, lifestyle, and finances.
As you get closer to the age of retirement, you may be wondering whether you have enough money to live comfortably for the remainder of your life.
You may also have dependents or relatives that you wish to leave some money behind for.
If you find yourself worried about not remaining financially stable in your retirement years, you may find some peace of mind from following some of these simple tips.
13 Lessons For Baby Boomers to Be Financially Secure
Saving money should never stop. Even when you enter into retirement age, you should be able to sequester a portion of your income, whether it’s from investments, social security or other, into savings.
Especially into older age, you never know what kind of medical emergency could suddenly force you to draw a significant amount of money to cover the costs.
Cut the Unnecessary Bills/Assets
We all fall prey to this one. If you find yourself in the red when it comes to paying your bills, you may need to evaluate your finances.
This means going through whatever recurring expenses you are taking on and cutting out the unnecessary things such as transportation costs, entertainment costs, and any frivolous expenses. T
his also entails going through your assets and selling off what you don’t use anymore.
Take Advantage of Senior Discounts
This should come as a no-brainer, but you may be missing vital senior discounts on a daily basis.
With any company you seek to do business with, ask if they offer any senior discounts.
We typically associate these with movies and diners, but there are senior discounts available for many other places too.
- grocery stores
- utility providers
- and more
Plus, if you collect coupons and learn how to double them up, you can reduce your grocery and toiletry list by up to 80%.
It takes time to learn, but there are many couponing groups you could join that will be happy to help you.
Apply for Veteran Discounts / Pension Benefits
If you’re a United States veteran who makes below a certain threshold of income, you could qualify for Veteran Pension Benefits. Only a small portion of eligible Veterans ever redeem their benefits.
For Veterans, surviving spouses, and family members, VA Pension Benefits can help offset the costs of senior living, at home care, and more. Likewise, you should ask businesses if they offer discounts for Veterans.
Consider a Senior Care Facility
If a significant portion of your expenses come from maintaining or paying off the mortgage for a house, you may want to consider moving into a senior living facility.
These types of places help eliminate the hassles of maintenance, taxes, and utility bills. Plus, they offer the opportunity to socialize and meet people that are also in retirement.
Join Discount Clubs
Not many people are aware of these groups. There are memberships you can acquire that give you exclusive access to discounts.
Depending on what kind of lifestyle you would like to have in your retirement, there are organizations available.
Such as the American Seniors Association, and the Seniors Coalition that offers discounts for members.
For federal employees, there is the National Active and Retired Federal Employees Association.
Search around online for organizations that cater to seniors, exchanging discounts for memberships.
Evaluate Your Assets
Realistically this is something you should do every year. If you have valuable assets lying around, they could be more worthwhile in cash. You could also be paying insurance on these assets.
If your assets wind up depreciating as you continue to pay insurance, you are going to lose money in the long run.
Reevaluate Your Health Care Coverage
During the annual enrollment period for Medicare, you can talk to a Medicare agent and determine the most affordable policy you qualify for moving forward. Many seniors may be overpaying for a healthcare plan that doesn’t suit them. Medicare could lower the costs for those who are eligible.
Check Out Your Local Senior Center
Senior centers are available across the U.S., and they offer many activities and events for seniors to take part in.
What’s more, these events could involve discounts at local businesses, free food, and the opportunity to have fun and socialize with peers.
Some senior centers have meal and nutrition programs, transportation services, and offer assistance for applying for public benefits.
Consult with an Expert
A financial advisor is another expense to take on. However, it could help you save money and avoid financial turmoil in the long run.
If you have specific questions that need answering immediately, a financial advisor who specializes in seniors could be helpful. There are currently over 50 senior designations used by the Financial Industry Regulatory Authority.
Turn a Hobby into a Profit
If you have a side interest or hobby that could be profitable, maybe it’s time to turn it into a lucrative side project.
This could be anything from painting, to woodwork, to consulting work.
Now that you are retired, you have time to focus on the things you are passionate about.
Turning that passion into a profit is immensely satisfying.
With technology and local sales group, such as the Facebook Marketplace, the process of selling your items locally has never been easier.
Develop a Retirement Spending Plan
Regardless of age, you should have a plan in place for handling your money and limiting your expenses.
You can find ways to cut costs and put those savings into an account that remains safe. It could even collect some interest. A retirement spending plan starts with calculating your monthly income, expenses, assets, and liabilities.
Next, you can search for ways to reduce your expenses and liabilities. You could refinance your mortgage, argue for better interest rates on outstanding loans, or reduce unnecessary expenses on things such as transportation, utilities, and entertainment.
Some say Baby Boomers know how to stay out of debt, this is because they developed a retirement spending plan early.
Use Credit with Caution
Debt is a costly burden that will only grow worse if left untreated. Many seniors may find themselves sunk in debt from unpaid balances, accrued late charges, or just poor management of finances.
Before you make any purchase with a credit card, make sure you know what accounts are paid off, and always make sure to monitor your credit score to ensure no card is quietly tanking your credit.