Why seniors should still save money
Senior Wellness | Sep 21, 2015
At this point in their lives, many seniors are relaxing and enjoying retirement. They're able to embark on adventures they might not have had the time for when they were younger and had many parental obligations. With the children either in college or firmly in adulthood, retired individuals and couples can use this time as they see it.
Of course, they'll have to have the money for such adventures. If all went according to plan in the years prior to retirement, a sizeable savings should have been accumulated. The buildup of wealth stems from a combination of savings accounts, 401[k] contributions, stock investments and in some instances, pensions.
Even with a healthy, monthly income, seniors still need to take great care and save money when possible. Poor money management, if gone unchecked, can decimate decades of careful investments and planning. Luckily, there are some methods geared specifically toward older citizens that can help them save money and still enjoy their various hobbies.
"Seniors still need to take great care and save money when possible."
Take advantage of your age
Some individuals may not want to be reminded of their age, but certain perks become available during the later stages of life. Numerous restaurants, movie theaters, and retail stores offer senior discounts. You may even be eligible for reduced prices on airfare, rental cars and hotel stays. The age at which such deals are offered will vary depending on the company, but even so, take advantage of every opportunity you can find for reduced prices.
If you haven't already, or just recently turned 50, consider joining AARP. For only $16 a month, you'll have access to even more savings. According to The Motley Fool, AARP members can access numerous financial programs, such as free webinars covering Social Security, Medicare and other topics that are important for seniors. Members can also seek free help during tax season. If they take advantage of the membership, the monthly fee is paid for in no time.
Other ways to save
Taking advantage of discounts is not the only way to save money on a monthly and yearly basis. The best way to save money is a time-tested method: don't spend more than you need to. With a lot of free time on your hands, it's easy to get carried away and develop bad spending habits. To help you stay on the right track, The Motley Fool recommended you are your partner enlist the services of a financial advisor. By doing so, your investments, 401[k] and other accounts will be overseen by a dedicated professional. They can advise you when to purchase or sell stocks, and when your current monthly spending totals may need to change.
"AARP members can access numerous financial programs."
According to the AARP, retired couples may also want to consider downsizing. For instance, if your children have moved out, look into moving into a smaller house. The benefits of such a move revolve around less expensive property taxes, utility bills and space. You won't feel inclined to purchase more furniture to help fill empty rooms. Downsizing can also entail selling a car, old household items and paying off all existing debt.
At this point, a monthly budget should be a staple of your financial planning. Seniors should adjust and plan accordingly to avoid overspending on a daily level. You can consult with your financial advisor as well as utilize the numerous online programs to help create budgets on a practical level. For example, some of the best apps for seniors are Level Money and Mint, as these services can analyze your spending habits and provide various recommendations to track your daily finances.
These tools are useful because while your financial advisor can monitor higher-risk options, such as investment and retirement funds, you can monitor the daily aspect of your bank account. This will help you avoid buying unnecessary items.
As you relax and enjoy your retirement years, use this time to go places and pick up habits you've been longing for. However, it's important to still save money. Luckily, there are a variety of methods seniors can set aside money and enjoy their next overseas vacation.