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7 Smart Money-Managing Strategies During Retirement

Posted by David Ghiorso, CPA, August 2, 2017

You already know that retirement poses unique financial challenges, but did you know that one in three retirees over the age of 65 is actually in financial distress (according to the National Council on Aging) and is unable to cover the costs of basic necessities such as food, housing, and medical care?

We don’t want you to be a part of that one in three. While some things in life are simply unavoidable, there are ways to manage money in the best way possible, to hopefully prevent serious financial problems. Try these seven tips to manage your money once you reach retirement.

Create – and stick to – a budget. This goes for everyone, really, but it becomes even more important once you retire and live on a fixed income. You need to know where your money is going each month.

Avoid debt. You don’t have decades of potential career advancement and raises to counteract any debt you rack up, so monitor your spending carefully. In particular, watch out for revolving credit card debt.

Learn the word “no”. This is difficult for those with a generous heart. But you need to set a budget for giving, both to family members as well as charity, and say no to any requests that exceed your budget. Make your own financial needs a top priority in retirement.

Research public benefits. Many public benefit programs exist to help retirees, from budget management to food assistance to public health fairs. Don’t hesitate to inquire about these services and use them.

Sleep on it. If anyone makes an offer “that is only good for today”, run the other direction. Whether it’s a deal on a new car, or an investment scheme, this is almost always a sign of a high-pressure sale gimmick. If a company really values your business, they won’t have a problem with you taking your time to decide. Spend time researching and deliberating any major financial decisions.

Stay healthy. After housing, healthcare is the largest expense faced by retirees. For some, healthcare even exceeds their housing costs. With the cost of medical care rising each year, the problem isn’t going away anytime soon. So take care of your health by eating a healthy diet, seeking opportunities to exercise, attending preventive health screenings, and making sure to sleep regularly and soundly.

Investigate your insurance options. Insurance exists to mitigate financial risk, in the event of major medical expenses or other costly circumstances. Give us a call, and we’ll help you learn about various insurance options that can help you manage your budget.

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