8 Money-Saving Tips for Senior CitizensSmart Money
According to SeniorLivingHelp.org, many seniors do not have the financial security to be able to pay for their hospital bills and afford a modest lifestyle. Did you know that it is possible to save enough money to be able to finance most senior living lifestyles, including 55 and older apartments? Here are some of the money saving tips that senior citizens can take advantage of to ensure that their retirement savings will last:
1: Take Advantage of Seniors Discounted Offers
The rising cost of basic needs including groceries, gas, medical care, and various other necessities have put a squeeze on seniors’ day to day budget. How can seniors ensure that they reduce total amounts spent on these necessities? Taking advantage of senior discounted offers is a great strategy. Many grocery stores offer seniors special discounts to encourage them to shop there. These discounts can be in the form of a 10% storewide discount on anything during any day of the week, or discounts for seniors only on specific days of the week. Taking advantage of these offers means that you can cut on the amount spent on buying the things you need. Use the accumulated savings from discounts to finance part of the next month’s expenses.
2: Go for Off Peak Purchases
Stores generally hike prices when they know there is a high demand for certain goods and services during a certain time. Some go to the extent of artificially or temporarily limiting supply during flash sales so that more people flock their stores to purchase. To save more money, senior citizens can purchase at the time when everyone else isn’t buying, so that they purchase when there is less demand. These hugely discounted times can include right after holidays when merchants sell off their unsold inventory, as well as buying clothes when they are not in season (i.e., purchase winter clothes during the summertime or other seasons and buying summer clothes during the spring or winter). This is the time when you earn discounts and enjoy bargaining power.
Moreover, you can go shopping at mid-month when purchasing power is low. Go for holidays off-peak when the hotels and resorts are struggling to attract visitors. During these times you will be able to save more because you will buy at discounted prices when the prices are lowered to attract purchasers.
3: Double Check All Bills and Check for Errors Before Paying
It is essential that you routinely check the bills for inaccuracies to save the money you would have paid on erroneous statements. When you receive the bills, check them against your records and raise questions whenever you suspect errors. This will help in ensuring you aren’t overcharged through erroneous invoices. Mistakes can happen naturally due to human error – for example when a grocery clerk accidentally charges you an extra 0 for an item (i.e., $19.99 instead of $1.99). Double checking your bills is a part of wise spending.
4: Budgeting Before You Start Spending
Another money saving tip for seniors is spending on a budget. Come up with a monthly budget to ensure you live within your income. Don’t plan for income you don’t have already unless you are sure you will receive it. If you start impulse buying, you will end up spending money on things you don’t need which reduces the amount that you would have saved. Ensure that you have a list of things you need in your house before you go to the convenience store for shopping. Carry enough money to make sure you don’t end up spending on what you don’t need.
5: Go for Reduced Interest Rates if You Must Borrow
Huge amounts go into paying interest rates. If you are about to take an emergency loan, you should compare the interest rates for the various options that you have. Research first before you sign the debt papers and make sure you negotiate for better rates. The lower the interest rates, the better, since you end up spending less on the cost of credit.
6: Avoid Bad Debts That End up Costing You
Seniors should differentiate between necessary debts and additional debts. There are those debts that you can live without, and so you would want to avoid them, especially when you are retired. You have a lower ability to repay these debts, and it is better that you stay away from borrowing after retirement. Ensure you have paid off all the debts before retiring to focus on growing your savings instead of paying debts. It is very frustrating for seniors in retirement if they start being chased after by debt collectors because of bad debts.
7: Go for Power Saving Options
The cost of power is going up as the cost of gas goes up. Perform an audit on the appliances that use electricity and get rid of the devices that you no longer need. For those that you still need, solar technology will help save your money in the long run. For this reason, it is essential that seniors go for the power saving options like solar water heating over summer and solar lighting to keep the cost of electricity down. You can have electricity as a backup plan, especially for the winter seasons. Switch off the lights when you don’t need them and close the curtains to keep the house warm enough during the winter. Over the summer, you can choose to open the windows to keep the house cooler. The amount saved in power bills can be used to grow your investments.
8: Invest Your Savings to Multiply Them
Seniors can also invest their savings in profitable ventures and hence multiply their savings. This includes investing in profitable stocks, buying strategic assets to sell for profits, developing existing assets for regular income generating ventures and other options. Talk to senior financial advisors on the best investment options for senior citizens. Avoid investing your savings in risky ventures as this can lead to lots of frustration and cause stress in aging adults. Also, go for diversification when choosing where to invest your savings.
With the above tips, seniors will be able to save more money and enjoy a better, happier retirement lifestyle for many years to come.