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3 financial tips for seniors in 2017

Finance & Planning | Jan 04, 2017

Have you thought about your finances for 2017?

If you need some help, here are three tips to consider for the new year:

1. Take advantage of discounts

If you meet the age requirements, you should take advantage of senior discounts whenever possible. There's no shame in doing so and in fact, you can save quite a bit of money over the long run.

Grocery stores, pharmacies, restaurants and retail stores all offer senior discounts, according to The Senior List. For example, if you're a member of AARP, you can receive free food from popular restaurants as long as you make another purchase.

Take these discounts into account when you're creating your monthly budgets. While you don't want to always eat out, you can relax a bit knowing you'll save money when you do eat at a restaurant.

"Take advantage of senior discounts whenever possible."

2. Set savings goals

Even if you've been saving the recommended 15 percent of your salary every year leading up until retirement, you should still continue to save money, no matter if you've started withdrawing money from your 401(k) or Individual Retirement Account and collecting Social Security checks.

Budget as if you were still working. Keep a list of your fixed expenses and set aside a portion - about 20 percent - of your monthly income in a regular savings account and emergency fund. Doing so will ensure you have all your bases covered and meet any 2017 goals you have in mind, such as a vacation or buying a new car.

You've worked hard for your money, so it makes sense that you use retirement to reward yourself while you enjoy everything life has to offer.

3. Cut and downsize

If you're looking to cut expenses and save more money, consider downsizing. While you'll be moving into a smaller house, you'll cut back on housing-related expenses.

According to Bankrate, downsizing to a $150,00 home from a $250,000 one will save you about $6,250 annually because your mortgage won't be as high and utility bills will be lower. Downsizing still requires a financial commitment, so budget accordingly to account for moving expenses and the likes.

You still need to track your finances as you age and in the new year, it's worthwhile to follow some tips so you can make the most of your money.