5 Financial Tips for Struggling Boomers
Blog post by Hazel Bridges of agingwellness.org
As you enter retirement, you have to get used to living off your savings rather than working for a paycheck. But some boomers find that they don’t have quite enough savings to live comfortably. Others realize that they underestimated their overall cost of living, while some get stuck with surprise expenses that force them to stretch their budgets and rethink their plans for their estate. TCG Insurance Solutions shares strategies to bring in more money while reducing your expenses.
Refinance Your Home
Are you trying to figure out how to pay for home repairs? Many boomers need to finance home modifications in their golden years, and getting the funds together can be stressful. Refinancing your home could be the solution. If you still have a monthly mortgage payment, you can refinance to lower your interest rate and improve your terms. This is a smart choice if you want to stay in your home for the foreseeable future.
If you’re a veteran and simply want a lower mortgage payment and better terms to help pay off your loan sooner, consider applying for a VA Interest Rate Reduction Refinance Loan, which offers a streamlined way to lower your monthly payment with better terms. With VA IRRRL rates remaining low, now is the perfect time to refinance!
Consider Downsizing
What if maintaining your current property simply costs too much? It may be the perfect time to downsize and move into a smaller home. You can reduce your property tax burden, as well as save on maintenance, repairs, and utility costs, which will make it easier to set a reasonable budget. Before you downsize, Moversville recommends decluttering and donating or selling items you don’t need anymore. You could even have a garage sale to make some extra cash.
Reduce Your Spending
Sometimes, financial troubles are simply a result of spending too much on unnecessary activities or services. Look over your expenses for the past few months and note any areas where you’ve been splurging. Create a budget based on your expenses and monthly income.
To save without sacrificing your quality of life, Banktracker recommends looking for restaurants that offer senior discounts, minimizing investment management fees, and traveling during the off-season. If you need guidance, ask a trusted relative to help you decide where you can cut back on your spending. You can even revisit your insurance policies to look for ways to save on homeowners, car, and even health insurance when you work with TCG Insurance Solutions.
Look for Assistance
There are several forms of financial assistance available to boomers who are in precarious positions. For instance, you may qualify for supplemental security income or low-cost home care help through a local agency. It’s worth doing research to find out which benefits you may be eligible for — you might be leaving money on the table otherwise!
Work Part-Time
Would you rather boost your income than clamp down on your spending? You may want to start working part-time. Many boomers do so and it doesn’t dampen their enjoyment of retirement. Working part-time is a great way to meet some new people, learn new skills, get involved with your community, and become more comfortable financially.
If you’re a boomer drawing a fixed retirement income, it can be tough to make ends meet at times. Even if you saved carefully for retirement, unexpected expenses can crop up. By following these tips, you can navigate times of financial hardship and learn to live frugally.
Photo via Pexels
Author: Paul Carrigan
Licensed agent in Kansas, Missouri and Ohio.
