Tips for single people in their 60s to better manage their finances
For singles, the retirement years are a time to enjoy life on their own terms, but that can vary considerably from person to person. Indeed, some basic financial knowledge is needed to secure one’s financial future. Still, not everyone needs to become an expert in investing or finance to meet their goals. However, with the proper saving habits and some key knowledge, you can enjoy a comfortable retirement.
Here are some ways that singles in their 60’s can save money during these years. Some may seem intuitive or self-evident, but sometimes it takes another person to point out the obvious. Additionally, not everyone will need to follow every one of these suggestions, but they’re all worth consideration.
CREATE A BUDGET AND STICK TO IT
If you don’t have a budget, creating one is essential for saving money in your 60’s. Start by listing all of your recurring monthly bills, such as rent or mortgage payments, utilities, car insurance, and so forth. Then determine how much income you will receive each month from social security or other sources. Subtract your bills from this income to figure out how much you have leftover. What is important is being honest and realistic about your expenses and not overestimating how much you will be receiving in your monthly income. It is essential to stick to this budget once you create it.
CUT DOWN ON UNNECESSARY EXPENDITURE
This is an obvious suggestion, yet some people fail to follow it. Make a list of every expenditure you make that doesn’t have a solid return on investment. Everything from your morning latte to new clothes needs to be considered for this list. If the item isn’t producing something for you, stop buying it! No purchase is too small or insignificant to be put on this list. Every cent will help you prepare for retirement.
DOWNSIZE TO A SMALLER PLACE
As singles in our 60’s many of us often tend to live in houses or apartments larger than necessary for one person’s use. If you can afford to move, downsizing to a smaller place is an option that will save you quite a bit of money on utilities and other expenses over time. Not only will you save in your 60’s, but you can net a nice lump sum when selling your old place.
TRY USING YOUR RETIREMENT SAVINGS TO GENERATE MORE WEALTH
You can use your retirement savings to generate more wealth for yourself instead of taking the money out and spending it on something that won’t produce a return or some other form of income. For example, if you have some extra cash in your investment account, you can invest in stocks and bonds that will grow over time and provide you with even more money for retirement.
PROTECT YOUR WEALTH WITH INSURANCE
Even if you are not working, insurance is still necessary for your financial life. Make sure that you invest in suitable insurance plans to keep your wealth safe. You may especially need life insurance if you are planning to leave inheritances to loved ones or for any other reason. Health insurance is also an essential consideration if you are retired and not on Medicare yet.
ENSURE THAT YOU HAVE AN EMERGENCY FUND
The greatest obstacle to enjoying your golden years is an unexpected financial crisis. A single considerable expense can completely wipe out a nest egg, so you must have enough money socked away to cover any possible shortfalls. Having an emergency fund in a high-interest savings account can help you cover any unexpected costs so that you can continue to live comfortably without taking on debt.
AVAIL THE BENEFITS OF SOCIAL SECURITY
Many Americans have a terrible view of social security, but it can be a valuable tool in your financial arsenal. If you are eligible, use the benefit to pay for basic living expenses that other savings or insurance might not cover. You can even use the money from time to time for entertainment purposes. Of course, if possible, try to supplement your social security benefits with personal savings.
CLEAR ALL YOUR DEBT
No matter how much you have in savings or investments, you are not financially stable if you are in debt. If your debts continue to accrue interest, it can be difficult to get ahead when you are retired. Paying off even one high-interest loan will make a big difference over time, so work hard on paying off all your debt before you retire.
Retirement is an exciting time in most people’s lives, but it can also be nerve-wracking if you are unprepared financially. Some of the best ways to prepare are cutting back on unnecessary spending, downsizing if necessary, and protecting your wealth with insurance policies. You may also want to use investment strategies and social security benefits to increase your wealth and stay financially stable even after retiring. And finally, pay off all debt and have a healthy emergency fund so you can enjoy your golden years without being in financial trouble.