Aging is not an EASY thing. One of the biggest fears for seniors is probably running out of money before they run out of gas. Unfortunately for some, they never make it to see their golden year. Well, if you’re here, you probably have. Congratulations! We’ve compiled these money management tips for seniors to help insure you live your fullest of lives while hopefully NOT running out of money.
Senior Money Saving Tip #1 – Ensure Your Mortgage Payment is Manageable
Part of living the American Dream is to NOT have a mortgage payment in retirement. However, life happens and sometimes we don’t have our homes paid off when we retire. While it might be ideal to get your home paid off as soon as possible, what if you still owe too much? Or, what if you still have 20-25 or even 30 years left on your mortgage? You may never pay if off.
Get your mortgage payment as manageable as possible. While a 15 year mortgage might sound great in theory, the higher payment might not be the best option. A Better Mortgage might be a 30 year loan so you’re not legally obligated to the higher payment. However, you can still pay as if it’s a 15 year loan (or and term length really). Then, if disaster strikes or if income decreases, etc., you can always switch back to the lower 30 year payment for some much needed relief.
Elderly Money Management – Can A Reverse Mortgage Help?
You may also consider getting some reverse mortgage info. Many people have heard misconceptions about reverse mortgages that may not (or no longer) be true. Put quite simply, a reverse mortgage is a very safe FHA insured home loan that puts the power back into your hands. The main difference between a traditional mortgage and a reverse mortgage is the way you pay it back. A reverse loan does not have a monthly payment to the bank. However, you CAN choose to make a payment each and every month if you want to. Or every other month. It’s totally up to you. There just isn’t a REQUIRED monthly payment. Even if your home is free and clear, you still may want to consider reverse mortgage as part of your retirement strategy. The reason is, you can set up a growing stand by line of credit. You may never use it, but if you ever need it you’ll be glad you set it up.
At the end of they day, your mortgage payment is probably your biggest expense. Do what you can to keep it manageable.
Money Tip for Seniors #2 – Use Senior Discounts in Restaurants
You see them in restaurants everywhere. Every restaurant is different. Some offer senior discounts at age 50, or 55, 60, or 65. Once you’re 50+, just always ask. You may have to show your identification to receive it.
Money Management Tips for Seniors Tip #3 – Take Advantage of Price Matching
If you’re shopping online, it’s pretty easy to find the cheapest price for whatever you’re buying. However, many folks (like myself) prefer to shop in the actual brick and mortar store. This is especially true if you’re buying a high ticket item. Anyhow, before you check out, do a google search for whatever you’re buying. For example, if you’re buying an HP printer, type in the model / make of your printer and find the lowest price. If it’s better than your store, just simply ask them to price match. Most places want your business and will price match as long as they’re not losing money.
Money Management for Seniors Tip #4 – Right Size Your Home Entertainment Expenses
If you’re paying $100 or more for cable tv, etc., consider dropping the cable and using things like NetFlix or HULU TV. Hulu gives you access to tons of tv programs, but it’s just the day after it’s normal air date. Netflix allows you to watch a ton of movies and tv programs. Both only cost about $14.99 per month. How about a NetFlix gift card? Enter for a chance to win!
After all is said and done, there are a lot of ways seniors can manage their money and save money. These are 4 of the big ones. If you have any ideas, feel free to make a comment in the comment section.