Showing posts with label how to save money. Show all posts
Showing posts with label how to save money. Show all posts

Friday, July 9, 2021

Cut Expenses and Save Money for Retirement

The vast majority of retirees worry about money.  Only a small percentage of Baby-Boomers have managed to save enough money to continue to maintain their pre-retirement lifestyle once they stop working.  Some people hope for the best, but do not know how to improve their fragile financial situation. I have even heard from people whose "retirement plan" is to never retire, because they know they cannot survive without a job.  

 However, even if you are not prepared for retirement, or you lost your savings while struggling to survive during the recent pandemic or a recession, the time may still come when you will not be able to work.  What will you do then?  This week's guest post by Dan Hall is about how to make sure you are able to survive during those final years of your life, even if you are approaching those years with very little savings. 

You may also find it helpful to also read a book such as "How to Make Your Money Last."  It could be a good way to help you formulate your own plan for the future.

Money Matters: Tips For Cash-Strapped Seniors

by Dan Hall

Money can get tight quickly when you’re retired. When you are past your career years, financial woes may be much more concerning than when you could easily earn a paycheck. Thankfully, there are ways to get past the unpleasantries of dealing with a limited income. To do so, you must evaluate your situation, understand what resources are available to you, and act on ideas which can reduce your spending. Here are a few tips.

Evaluate

If you are falling short at the end of each month, especially if you are still working, it is time to take a hard look at your budget. This is essentially a spreadsheet or piece of paper that lists out your income and expenses. Knowing how much money you have coming in and going out can help you better define your financial goals.  If you have already retired, your choices may be more limited, but you still have choices you can make.

Look through your bills to determine if you have anything which does not get paid on time each month. If so, this is a good indication that you do not have enough income to support your spending habits. Part of your budgetary evaluation should also be to determine if it is possible for you to save any extra money for an emergency.

Understand

If tracking your money and saving a portion of it is not your strong point, you may benefit from working with a financial consultant. This is a person who offers a service to help you better understand your debt, income, and budget.  You may also want to contact your credit card company to see if they can refer you to a free financial service to help you with budgeting.  They would rather help you get back on track financially than see you default on your credit cards and other bills or, worse for them, have you file bankruptcy. The financial consultant can help you determine where you can cut your expenses.  

Cutting expenses may not be enough, however, to help you balance your budget. You may also need to find additional sources of income. Depending on your income and where you live, you may be eligible for additional government financial support, such as Supplemental Security Income. Your local welfare agency, Social Security office, or senior center can help you apply for and access this financial assistance.  You may also be eligible for other government programs such as lower cost medical coverage through the Affordable Care Act, SNAP (food stamps), housing vouchers, disability income, and other types of assistance. If you are a veteran, talk to the Veteran's Administration to see what assistance they may be able to provide.

Act

Once you have a handle on your incoming and outgoing money, and done what you can to lower your expenses and increase your income, you can then make better financial decisions in the future. If you find that you still need to cut costs, there are several ways to do so without sacrificing the joys of retirement.

If you own a home, start by paying off your mortgage or refinancing it, if possible.  If you have been making payments on your home for a long time, you may no longer have a large mortgage, and paying off the remaining balance could be possible. If you have enough cash in the bank to pay your home off, you will not only save on mortgage interest, but that will be one less major monthly bill to pay.  If you cannot afford to pay off the mortgage, you may be able to refinance it at a lower interest rate and/or for a longer term.  This could make your payments more affordabl.

Another option which involves your home is moving to a smaller home in a less expensive location. If you move from a large family home to a smaller home in a less expensive area, you could save hundreds of dollars per month. 

If you rent, rather than own a home, the same idea applies.  See if you can find a smaller, less expensive place to live.

When you are ready to make a move, you may want to look into getting help from professional movers in your area. Ultimately, hiring movers may be worth the cost, because it is safer, especially for senior citizens, and they will save you time.  Even if you have limited money, you may may be able to hire a local mover. This could prevent you from injuring yourself which, in the long run, could end up costing you more than the cost of the move.

Another option, if you do not wish to relocate, is to bring in a roommate or create an intergenerational living situation.  Do you have a relative or friend who would like to help share in your living expenses?  Such an arrangement could save you a significant amount of money each month, and help you get your expenses in line with your income.  Another possibility is to rent out your garage, basement, or part of your home for storage. Then, you do not have to deal with another person, but you can earn a little extra income.

Aside from your living situation, you can also reduce your monthly spending by cutting back on the number of times you dine out each month. If you do decide to go for a meal, ask for a senior discount or go during the lunch hour for lighter portions and a cheaper tab. Instead of dining out with friends, plan to have dinner at home once each month with the people you are closest to. This pulls double duty by saving you money while allowing for socialization.

Look for other ways to save money.  Do you have the least expensive plans to cover your cell phone, internet, cable TV and similar services?  Anyone receiving government assistance may also qualify for discounts on some of these services. Do you really need a telephone land line, if you also have a cell phone?   Are there streaming services which you rarely use?  

In addition, look closely to see if there are ways you can reduce your monthly expenditures for electricity and other utilities.  Are there less expensive ways to enjoy your favorite hobbies ... public golf courses, and free art classes at local community colleges, for example?  Look for all the ways you can cut your expenses.  Challenge yourself to see how much money you can save each month.

If cutting corners is not enough, and you are not eligible for government assistance, it may be time to supplement your income with a part-time job. A few great part-time jobs for seniors include bookkeeper, school bus driver, nanny, tutor, store clerk, and cashier.

Living on a fixed income does not mean you have to sacrifice your quality of life. While you may have to juggle a few things here and there, move to a less expensive housing situation, and cut costs, you may be able to make the most of the money you have. But do take the time to budget and learn all you can about money and your financial situation. Knowledge is power, and having a grasp on your finances means you can change and adapt when needed.

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If you are interested in learning more about saving money, financial planning, Social Security, Medicare, where to retire, common medical issues as you age, travel and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

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You are reading from the blog: http://www.baby-boomer-retirement.com

Photo credits:  Pexels

Tuesday, May 28, 2019

Save Money During Retirement

The vast majority of Americans retire on a fixed income, which can get very tight over time.  As the years go by and the increases in their Social Security benefits turn out to be small or non-existent, it can become increasingly difficult to make ends meet.  This may cause stress and depression. While not all financial problems can be solved by continuing to tighten our belts, sometimes making a few changes can help stretch our dollars a little further.  As a result, I researched a number of sites for recommendations on how ordinary retirees can reduce their expenses.  Below are some of the ideas I discovered.

Money Saving Ideas after Retirement

1.  Cut out streaming services such as Netflix, Hulu and Amazon Prime.  If you are currently using all three, eliminating them can save you around $67 a month or $804 a year.  It will also protect you from the inevitable rate hikes.  If you must use a streaming service for your television entertainment, choose the least expensive one and prepay it each year to further reduce the cost.  In addition, with Amazon Prime you can get other amenities, such as free shipping on Amazon purchases, including the gifts you mail to your grandkids. Combined with using an antennae to watch local channels, you could find yourself with all the television options you want to watch. On the other hand, if antennas do not work in your area and the cheapest way for you to get your favorite TV shows is through Hulu rather than cable, then that could be your best option.  Just do your research, eliminate any unnecessary service, and make sure you are using the least expensive choice possible to enjoy TV.

2.  Do you really want to spend money on smartphone games?  Many people who use smartphones also spend an average of $7.25 a month on games.  Stick with free games and apps.  There are plenty of choices.  While you are at it, discuss your phone plan with your current carrier, as well as their competitors.  You may be able to save money by only paying for the amount of phone service you actually use!

3.  Eliminate subscriptions to newspapers and magazines. If you enjoy reading your news, download free news apps to your smartphone or follow your favorite news sources on Facebook and Twitter.  You can read all the major news stories through those sites and actually get the stories more quickly than waiting for tomorrow's newspaper.  This could save you $5 to $10 a month.

4.  Eliminate other subscription services, such as satellite radio.  Use free options like your local AM and FM stations or use Spotify and Pandora.

5.  Give up expensive coffee shops.  Our local Starbucks coffee shop is often full of retirees who enjoy meeting each other and chatting over a cup of coffee or a latte which could cost as much as $3 to $5 per beverage.  However, they could be going down the street to McDonald's and have the same conversations over a cup of $1 coffee.  Depending on how often they get together, saving a dollar or two a day could add up to a significant amount of money over the course of a year.

6.  Buy regular gas rather than premium, unless your car's owners manual specifically requires premium fuel.  The savings could add up over time.

7. Evaluate that annual membership at a warehouse store.  Do you really save enough to make the annual membership fee worthwhile?  How often do you use it?  Could you do just as well at your local grocery store by taking advantage of sales and coupons?  Spend a few weeks comparing prices and decide which is the best option for you.  If you discover that you use the warehouse store for more than just groceries, for example to fill your gas tank, replace your tires, purchase clothing, or for small appliances and gifts, you may decide to keep the membership.  Just make sure you are really using it.

8.  If you are retired and paying the full price for a gym membership, check with your Medicare policy.  Many of them offer free or extremely low cost gym memberships which could save you a substantial amount of money.  In many Medicare policies, these low-cost gym memberships are referred to as Silver Sneakers.  In addition, many local senior centers have exercise equipment and offer free or low-cost exercise classes.  Explore all your options and choose the one which costs the least and you are most likely to use.

9.  If you are still a smoker, give it up and reap the savings.  There are, of course, many other reasons to give up smoking.  However, if nothing else works, the fact that you could save as much as $200 a month, depending on how much you smoke, should be a good enough reason to give up this habit, especially if you are having trouble covering your expenses.

10.  Do you have other expensive habits or hobbies?  While no one wants to give up everything they love in order to survive during retirement, it could be worthwhile to explore less expensive options.  Are you taking guitar, piano, art or golf lessons?  Perhaps you could find free or low cost group classes rather than private ones.  Is your nearest golf course expensive?  Have you looked for a public course in your area?  Many cities offer free classes for senior citizens and have public pools, public tennis courses, public golf courses and other recreational facilities where seniors can participate for free or at a low cost.  Ask someone at your nearest senior center and see what they suggest.

11.  Reduce your debt payments.  Talk to your lender about refinancing your mortgage, if you have one.  If you believe your property tax assessment is higher than the actual value of your home, seek the help of a local Realtor and appeal it.  If you have a car payment, it is possible you may be able to refinance it through your bank or Savings and Loan.  If you are carrying a balance on your credit cards, see if you can transfer the balance to one with 0% interest for the first year, and try to pay off the balance within that time.  Check out every payment you make and see if there is a way to reduce it.

12.  Monitor your utilities carefully.   Lowering your thermostat a degree or two in the winter and raising it a couple of degrees in the summer could lower your gas and electric bills.  Reduce your water bill by taking shorter showers. You can make an even bigger difference by replacing some of your landscaping with drought resistant plants which require very little water.  Do you really need both a cell phone and a landline?  Eliminating the landline could save you $50 to $65 a month.  Making a few adjustments to your utility usage could reap large savings.

13.  Change your Medicare supplement to an HMO or try a Medicare Advantage plan.  Medicare beneficiaries have two choices in getting their Medicare benefits.  They can get basic Medicare and then buy a supplement OR they can get a Medicare Advantage plan.  In most cases, the Medicare Advantage plan is less expensive and often provides extra benefits, such as dental and vision insurance.  Talk to several insurance carriers in your area and compare the cost of their plans. Choices vary from state to state. You will also need to compare your co-pays, deductibles and drug costs.  After making the comparison, decide which plan will give you the best coverage for the least amount of money.  In many cases, a Medicare Advantage plan can save you several hundred dollars a month over the cost of basic Medicare with an additional premium PPO supplement.  If your income is low, you may also qualify for a combination Medicare/Medicaid plan. Be sure to ask about that, because the savings can be significant.

14. Evaluate the gifts you give your children and grandchildren.  Many senior citizens risk their own retirement because they are too generous with their adult children and grandchildren.  Even though you may want to help them, it doesn't benefit anyone if you end up becoming dependent on your children because you can no longer support yourself.  Keep that thought in mind when your children want to borrow money from you or ask for help with car purchases or college loans.  You can offer them guidance in finding other ways to finance the things they want, but you should not give them money that you cannot afford to lose. If you do, it will eventually only cause more problems for everyone.

15.  Don't forget to use AARP or AAA senior discounts.  Many restaurants, movie theaters and other organizations will give you a senior discount but, in most cases, you have to specifically ask for them.  Do not hesitate to ask!  If you belonged to a union or other professional organizations during your working years, you may also qualify for various business discounts. For example, my educator union membership provides me with a 10 percent discount on my monthly cell phone bill.  Take advantage of every discount you can find.

16.  Go to a Food Bank.  Most food banks do not ask you to fill out any financial information.  They will give a bag of groceries to anyone who shows up.  If you are faced with the choice between food and your medical expenses, a food bank may be able to provide you with the essentials.  Then, talk to your medical provider about how you can lower the cost of what you are spending on co-pays or prescription drugs. This is a choice no retiree should have to make.  

If you are looking for more ideas to save you money, you may want to read the book "Minimalist Budget: Everything You Need to Know about Saving Money."  It has even more great ways to save.  Use the above link to check it out.  

Look for Ways to Increase Your Income

If the above actions still leave you short of money, you may want to talk to your local Social Security office and the Department of Social Services.  They may be able to help you get a housing voucher to lower the cost of your rent, add you to the waiting list for low-cost senior housing, provide you with SNAP (food stamps), or put you on Supplemental Security Income (SSI).

If your current income is too high to qualify for any of those programs, you may want to talk to your local Senior Center or state employment office about how to find a part-time job to supplement your retirement income.

If you own a home, you may be able to rent out a room, or rent out storage space in your garage or basement.  Even small increases in your income can help bridge the gap between your fixed income and what you need in order to live comfortably.

Budgets are tight for many senior citizens.  You are not alone.  Reach out to your senior center and local government agencies to get the help you need to balance your budget before you get too deeply in debt.

If you are interested in learning more about retirement planning, Social Security, Medicare, affordable places to retire in the US and abroad, and common medical problems, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional, helpful articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  Google images / Smart thermostat

Sunday, January 1, 2012

Save Money in the Coming Year

What is your
New Years Resolution?
Back in 2010, the Washington Times reported the top New Years resolutions that were made that year.  The top 5 were: give up smoking, cut back on alcohol, exercise, lose weight, find a soul mate. 

While watching Dick Clark's "Rocking New Years Eve" on television in 2012, they listed the top New Years resolutions for that year.  They were very similar, with one notable difference.  The top resolution by the end of the recession was "Save Money".  This is not surprising, considering that many people are still struggling financially.  Many people, and not just Baby Boomers, are trying to learn how to reduce their expenses so they can survive on a lower income.

How to Save Money

However, the fact that saving money was not even on the list in 2010, and was number #1 in 2012, shows just how much our economy changed in a few years.  The AARP Magazine for December 2011/January 2012 addressed ways to save money in a short article called, "Boost Your Savings."

Here are some of the suggestions they had to help people who are having trouble making ends meet:

1.  Have a budget, and use it to decide whether or not you have any expenses that are no longer needed.  For example, if you no longer have any dependents, do you really need as much life insurance?

2.  Instead of cutting out things you enjoy, replace them with less expensive activities.  For example, if you enjoy eating out, share meals or find less expensive restaurants. 

3.  Find a less expensive place to live.  If you look through some of the other blog posts here at Baby-Boomer-Retirement, using the tabs or pull-down menu at the top of the page, you will see a large number of suggestions for affordable places to live on Social Security.   All of these posts list locations across the US where the housing is affordable and there are other amenities that appeal to retirees.  Since housing is the largest expense for most adults, finding a less expensive place to live is one of the best ways to save money.

4.  Finally, AARP recommends that Americans work until they are at least at their full retirement age of 66 or 67, and continue working until age 70 if that is possible.  These years of extra work will maximize the amount of Social Security you will receive.  If you can't keep working at your current job, see if you can find part-time work while you still have your health.  This can make a significant difference in your financial situation after retirement.

If you are looking for additional ideas for how to save money in retirement, where to retire, health issues, changing family situations and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

With that goal in mind, please continue to follow http://www.baby-boomer-retirement.com,.

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Sunday, October 30, 2011

Why You Should Join AARP




Long before my husband and I quit working, while we were still in our 50s, some friends suggested to us that we join AARP.  This is the American Association of Retired People. We thought they were crazy. We were still years from retirement, and could not imagine why we would need to join a retirement organization.

However, like millions of other Baby Boomers, as well as people who are older than us, we have discovered that there are many benefits to belonging to AARP. Their money saving discounts have more than covered the modest amount of their annual dues.

As a result, one of the first money saving tips I want to pass on to other Baby Boomers is that they should sign up for AARP as soon as they are eligible. AARP has negotiated discounts at hotels and tourist attractions. They also make it possible for you to use your AARP card to get discounts at Walgreens.

AARP will also send you emails and magazines with information about financial planning, fitness for seniors, heath facts, and more.

You can find out more about the member benefits that are available at AARP.org.  However, below is a list of some of the major discounts that you can expect to use when you sign up.

Examples of AARP Discounts for Members

Walgreens
1-800-FLOWERS
Kindle e-readers and e-books from Amazon
Denny's Restaurants
Ticket Masters
Papa John's
Regal Movie Tickets purchased online
Best Western Hotels
Budget Rent-a-Car
ADT Home Security

Other AARP Benefits

Of course, there are many other benefits that you will receive with your AARP membership.  Some of these are:

Medicare Supplement plan
Identity Protection Plan
Debt Consolidation Calculator
Rent vs. Buy Calculator
Mortgage Payoff Calculator
Roadside Assistance Plan

Whenever my husband and I purchase tickets to a tourist attraction, make hotel reservations, rent a car or do many other things, we always ask if there is an AARP discount.  Without a doubt, the discounts alone make our membership dues well worth it!

If you are looking for more retirement information, use the tabs or the pull down menu at the top of this article for links to hundreds of additional articles on where to retire, health information, financial planning and more.

You are reading from http://www.baby-boomer-retirement.com