Tips for Seniors for Saving Money
Written & Reviewed by
Last updated:
Once you have retired, running out of finances becomes your biggest fear. The fact that most seniors retire with fewer savings is increasingly raising concerns in America. Did you know that 21% of seniors retire without any savings? Read more from Northwestern Mutual at https://news.northwesternmutual.com/2018-05-08-1-In-3-Americans-Have-Less-Than-5-000-In-Retirement-Savings. This figure is worrying, right? Yes, but you can still make the right decision for the sake of your family. It is never too late to start saving today. For a broader look at nationwide aid and programs that can supplement your savings, explore our senior benefits overview, which breaks down the main monthly supports and eligibility guidelines for retirees. Looking for tips for seniors to save money? Well, we have a lot in store for you. Keep reading…
Here is What You Should Know About Retirement…
The number of people retiring increases day by day. Do you know why? because over 10,000 adults turn 65 in a single day and the number is expected to hit 12,000 within a decade. For a quick roadmap to stretching a fixed income, the Senior Benefits in 2025 guide shows how to stack Medicare Savings Programs with SNAP and other supports to cut monthly costs. Find out more from Yahoo! Finance’s 2018 report at https://finance.yahoo.com/news/americans-retiring-increasing-pace-145837368.html. Women live a bit longer than men in the U.S. Almost half of Americans are not aware of the total amount they need for retirement. About 46% of seniors use guesswork to determine the amount of money they may need for retirement. This is according to the 19th Annual Transamerican Retirement Survey, which was released in 2019. Read more about the survey results at https://transamericacenter.org/docs/default-source/retirement-survey-of-workers/tcrs2019_sr_what_is_retirement_by_generation.pdf.
How to Save money for seniors
Before trimming more expenses, use our unclaimed senior benefits checklist to screen for programs many older adults miss each year.
Make a budget
To effectively visualize how you spend your money, especially after retiring, it is great to develop a budget. This helps you to know how to cut costs whenever you feel you are spending too much. If you use websites like Mint, you can easily understand how you spend your money on, say, entertainment, groceries, healthcare, and dining. This website allows you to keep track of your spending and it is high time you sign up for an account and start making good use of it. Once you know how you spend your money, you can then develop a budget to help you stay on track and cut costs after retirement. Visit https://mint.intuit.com/ and create an account and start setting your savings goals today. If you prefer simple tools with large buttons and phone support, our best money management apps for seniors roundup compares options you can start using in minutes.
Tips for Setting Up a Budget
- Categorize Your Expenses into Monthly and Yearly Expenses. What are your most essential expenses? How about the non-essential ones? Make sure you list down everything down.
- Allocate Your Expenses Over a Full Year. Let’s say you spend $400 in June of every year to pay for health insurance costs, allocate that amount on the date of the month.
- Once You Have All Your Expenses and Income Listed Down, It Is Important to Add Them All Together to Find Out the Total You Have in A Year. Are your expenses higher than your income? This cannot be good at all. If this happens, ensure you revisit your budget and reduce the non-essential expenses.
Develop a Meal Plan
So many people throw away food worth thousands of dollars. Planning for your meals can get you out of this situation and help you save lots of money. Developing a meal plan doesn’t have to be difficult. It is just deciding on what you are going to eat for the rest of the week. Getting things ready by shopping in time and preparing all the ingredients you need to prepare your meals. Having a meal plan in place will help you make good use of the ingredients and ensure that no food goes to waste. Take note of what is left in the kitchen, put together recipes for meals that use similar ingredients, and come up with your grocery list. You can always check on blogs and websites that help in developing meal plans. You can never fall short of resources to help you achieve your goals. As a senior, you need to do everything you can, even if it means utilizing all the resources you can find to save money and avoid facing financial constraints. To keep grocery bills predictable while improving nutrition, these food programs for seniors explain how SNAP and meal services can support your weekly plan. Did you know that nowadays you the groceries and all the items you need can be delivered to your place? This helps you save on money, especially after retiring.
Save on Utilities
Because you are an elderly person, you may be eligible for some discounts. It is important to check with your utility provider. There are utility providers who waive fees for the aged and those with low income. However, you must enroll to take part in the programs offering such services to take advantage of such benefits. Are you checking on how to use your energy? You may also save on utilities by being conscious of how you use them. Looking for tips to cut on utility costs? Check out the following points:
- Turn off the lights when you are not using them. Why leave the lights on when you are, say, asleep?
- Go for light bulbs that save on energy.
- Not using appliances? Why don’t you unplug them?
- When brushing your teeth, please turn off the bathroom sink to avoid water wastage.
- Get the leaking sinks and toilets fixed.
If energy costs are squeezing your budget, our utility bill assistance for seniors guide covers LIHEAP, weatherization help, senior discounts, and what documents to prepare.
Take Control of the Money You Have by Automating Payments and Using Low-Cost Credit Cards
Being financial savvy is important when you want to save money after retirement. Automate payments when paying bills. Avoid making late payments as this can make you have poor credit scores and hefty fees. Automated payments ensure you don’t lose much of your money simply because you have thought of a bill you haven’t settled yet. Review payments automatically made from your bank account regularly to keep track of how you spend. Automated bill-pay works even better when you lower your tax burden, and the Credit for the Elderly or Disabled can reduce what you owe or increase a refund for eligible filers. Some credit cards have fees that can be annoying sometimes. Why don’t you go for other options for credit cards that you can use without having to pay annual fees? Besides, many cards come with benefits, such as travel points. This helps you save money because you can use the points in place of cash.
Use the Library for Resources Rather Than Spending Money on Books
Just because you are aged doesn’t mean you shouldn’t enjoy reading novels or magazines. Many libraries also host or connect you to free educational opportunities for seniors, including online and in-person classes that build skills without adding costs. Why don’t you make use of your local library to get access to the resources you need? You can surely learn new things from your local library instead of using your money in acquiring new books.
About the Authors