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8 Essential Financial Tips for Seniors

8 Essential Financial Tips for Seniors

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Over 25 million seniors aged 60 years and older are deemed financially insecure. This means that they are 250 percent below the federal poverty level.

To set yourself apart from this daunting statistic, it’s essential to prioritize your financial health as a retiree.

Retirement is about taking trips you never had time for, exploring a new hobby and spending time with family. But it is also about setting yourself up for financial success throughout your senior life.

Luckily, these eight financial tips can ensure that you maintain financial health and live a comfortable life as a retiree.

Create A Detailed Budget
You can use a budget plan to eliminate unnecessary expenses, track living expenses and incorporate the funding you need to pay for your grandchildren’s birthday presents every year. The goal of creating a budget is to ensure that you don’t burn through your life savings too quickly.

Turn A Hobby Into A Part-Time Job
Being retired doesn’t mean you can’t earn a part-time income. Think about getting a seasonal job at your favorite store or doing freelance consulting.

Before making this step it is important to make sure that this extra income won’t affect your Social Security, income tax implications or increase in Medicare costs.  

Make Your Money A Priority
It can be easy to open up your bank account to your family members who are struggling financially. However, this can create tension within your own bank account and your own marriage. Make your money a priority by making an effort to be helpful without being overly generous.

Be Aware Of Fraud
Unfortunately, senior citizens are at a higher risk of fraud. Because of this, it is important to implement fraud safeguards to protect your financial well-being.

You can set up mobile and email alerts for when large withdrawals or transfers are made. Placing location boundaries on your credit cards are also a great way to prevent fraud as well.

Minimize Debt As Soon As Possible
Eliminating debt throughout your life is always important. But it is especially important to senior citizens because you want to keep your debt to income ratio as low as possible.

Implement the appropriate measures to eliminate “bad” debt such as car loans, credit cards and equity lines of credit.  

Be Aware Of Cognitive Decline
Unfortunately, as you age, your cognitive abilities tend to decline. It is important to be aware of this because making payments and managing bills will eventually become a struggle. Ask one of your adult children to help maintain your bills and make sure your finances are managed properly.

Be Prepared To Hand Over Your Finances
Take precautions on what would happen to your finances if anything were to happen to you. This can include hiring an attorney to help you create a will and designate a power of attorney to allow someone to be the key decision maker of your money.

Regularly Evaluate Your Finances
Many seniors evaluate their financial health when they retire. But it is essential to regularly evaluate your finances throughout your senior lifetime to prevent any financial hiccups.

Financial Tips For Seniors
Finances can be daunting, but implementing the proper financial tips can put your financial worries at ease. With a little extra financial planning, you can live a comfortable lifestyle as a senior citizen without relying on financial help from your children.

Here at Seniors Helping Seniors, we strive to help seniors live a healthy and happy independent lifestyle within the comfort of their own home. Contact us today to learn more about how we can help you or your loved ones.

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