Helpful Budgeting Tips For Seniors Who Want To Stretch Their Income

If you’re retired or preparing for retirement, learning how to make the most of the money you have coming in each month can help you think less about your finances and focus more on enjoying your time.

Even if you don’t have to fret about your financial future, it’s still nice to have more money in your pocket, right? Using discounts and other strategies for saving can give you a little extra to do with as you please — like treating the grandkids to something special!

One of the first steps most financial experts suggest for nearly anyone who wants to have more peace of mind when it comes to their finances is to create a budget.

Budgeting for Seniors

If you aren’t in the habit of following a budget, keeping track of how much you spend each month can be a real eye-opener. You’ll see what share of your income goes toward necessary expenses and how much is available for saving or discretionary spending.

A budget for seniors on fixed incomes can be especially helpful in allaying concerns about making ends meet. When prices on food, gas, prescriptions drugs and other everyday items go up but your income doesn’t, having a budget — and sticking to it — becomes even more important.

Getting Started

Want to keep it simple? The National Council on Aging offers an easy example of how to create a budget calendar. All you need is … you guessed it … a calendar. You use it to track when you receive income payments and when bills and other expenditures are due. It can help you make sure you have enough money on hand to meet your expenses.

AARP also offers a variety of online budgeting tools, like this home budget calculator.

Feeling Techy?

You might want to try a budgeting app. A few that have been mentioned by various sources as the best budget app for seniors are EveryDollar, Goodbudget and PocketGuard.

Some charge a monthly or annual fee, so be sure to read the details. There may be a free basic version or free trial period to let you test the water before you jump in.

Other Sources for Budget Help

If money matters aren’t your strong suit and you aren’t comfortable tackling it on your own, you could ask a trusted family member or friend to give you a hand setting up a basic budget.

If your finances are more complex or privacy is a concern, you can consult a professional, such as an accountant or financial planner, to help you get started. Be sure to verify the professional’s credentials and check with places such as the Better Business Bureau or your state’s licensing agency to see if any complaints have been filed against them.

7 Best Budgeting Tips To Trim Your Expenses

These are among the most-recommended tips for older adults (and others) who want to maximize their income. Bear in mind that small, easy changes can add up to big savings. Feel free to share this list with your friends and family!

1. Ask about senior discounts.
   Many businesses, including restaurants, grocery stores, movie theaters, golf courses — even wireless carriers, offer discounts to adults as young as 55 or 60. Discounts may be offered on certain days of the week or month. Many require you to sign up for a rewards program to qualify, but it could be worth it if you go there frequently. Tip: Be sure to ask about senior discounts everywhere you shop or visit.
2. Look for deals on bundled services or products.
   It’s common for vendors to offer bundled deals on services such as phone, cable TV and internet. Insurance companies also typically offer reduced premiums if you bundle your car insurance and homeowners (or renters) insurance. Tip: When shopping, especially online, check to see if the merchant offers bundled products to help you save. Health and beauty products are a good example.
3. Get a membership at Costco or Sam’s Club.
   Shopping at a warehouse club retailer can save you money on a host of items — from food and cleaning supplies to electronics, books, clothing, prescription drugs, eyewear, hearing aids and much more. You’ll pay for a membership, but if you use it frequently, the savings will more than cover the fee to join. And Sam’s Club offers a senior discount on the membership fee! Tip: If you don’t have space to store large quantities of products, consider splitting the quantity and cost with a friend or relative.
4. Buy an insurance policy for your pet.
   A visit to the vet can be quite expensive. If you have a pet that needs surgery or ongoing treatment for a chronic condition, you may end up spending thousands of dollars. Pet insurance is relatively cheap, and while it won’t cover the entire cost, it can save you a significant amount. You may have to pay the total up front and then the insurer will reimburse you for a portion of the bill. Tip: Some insurers will issue a new policy even for older pets, so why not see what’s available?
5. Get rid of subscriptions and memberships you seldom use.
   Do you have subscriptions to magazines, news publications, digital audio and video streaming services or apps? What about memberships to a club or gym? Tip: If your budget can cover the costs, then keep them. If not, consider canceling them.
6. Pay annually instead of monthly if you can.
   Insurance companies typically offer the option of paying your premium monthly instead of annually or semiannually. While paying a smaller amount each month might seem more manageable, you are likely paying extra for this convenience. You can save by paying the entire premium at once, if your budget permits. Tip: Other types of businesses may offer similar payment options. Always check to see if you’re paying more to make monthly payments.
7. Seek out free or inexpensive leisure activities.
   See if there are free concerts and other live performances in your area, such as art fairs, cultural festivals and summer concerts at a local park or outdoor shopping mall. You might also find free or low-cost activities, including a variety of classes and clubs, through your community center, senior center or library. Tip: Instead of dining out with friends, consider taking turns hosting potluck dinners at home. You may discover you prefer a more intimate setting, where it’s easier to converse and you don’t feel rushed to free up the table.

Last, But Far From Least …

The most effective way for many older adults to lower their expenses is to move into a smaller, more affordable home.

Along with a lower mortgage or rent payment each month, energy bills are likely to be lower to heat and cool a smaller living space.

What If You Own Your House?

Finding a smaller home may still be the smart move. For one thing, as noted above, your utility bills will probably be lower. If the home is newer than the one you currently live in, you may spend less on upkeep and repairs, too.

Chances are you’ll have a net profit if you haven’t borrowed against the equity in your house. You could invest at least some of that money and put it to work earning interest.

Explore the Tax (and Other) Advantages of a Life Plan Community

Moving to a Life Plan Community like Heritage Community of Kalamazoo means you won’t have to spend time and money on maintaining your residence. We take care of that for you. In addition to landscaping, repairs and other maintenance services, we’ll even do the housekeeping! You’re free to engage in activities that are way more fun.

What many people don’t know about Life Plan Communities is that there may be tax advantages to living there. For starters, you most likely won’t have to pay property taxes.

The main advantage, though, is that part of your monthly and/or entrance fee may be tax-deductible because it’s used to prepay future medical care.

We can provide more information about this, and your tax adviser can tell you whether you could benefit from this deduction.

Think You Can’t Afford To Live Here?

Add up the various home-related expenses you’re currently paying, including property taxes, insurance, utilities, repairs, services such as landscaping and other typical costs of owning a home.

When you compare your total current expenses to the cost of living at Heritage Community of Kalamazoo, you may find they’re about the same. You might even discover that it would cost you less to live here.

Then, factor in the tax advantages mentioned above plus access to all of our amenities and social activities. Seems like a pretty sweet deal, eh?

We invite you to learn more about Heritage Community of Kalamazoo. Just take a minute to fill out our contact form or call (269) 364-6560.

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