Your Guide to Managing Financial Stress and Worries in Retirement
The professionals at Certified Homecare Consulting are experts at providing compassionate care for seniors in need. In many cases, however, what those older adults also need is a helping hand with their finances. Financial stress can be a common concern for those who are preparing for or already living in their retirement years. But this financial readiness guide can help relieve some of the pressure and help seniors get back on track with their budgets.
Start With Your Home
Home is where the heart is but your home can also be at the heart of your effort to cut costs and reduce financial pressures during retirement. Here are some of the ways you can use your home to save:
Sell Your Home for Extra Cash
Depending on how much equity you have built into your home, selling it could provide the extra cash you need to pay off debts and live comfortably in retirement. You will need to subtract your current mortgage balance from the current value of your home to tally how much equity you have, but it’s also a smart move to connect with a realtor before you decide to sell.
Consider a Reverse Mortgage
If you still need to live in your home, a reverse mortgage is another way to leverage your home equity for extra cash. With a reverse mortgage, your current loan is replaced with one for a larger amount and then the difference is paid out to you. Since you can still live in the home, this can be a reasonable option for padding your income but also be aware of potential risks.
Lower Your Utility Expenses
Perhaps a less drastic way to use your home to reduce costs is to look for simple and painless ways to save on your monthly utilities. For example, U.S. News notes you can lower your electric bill by adjusting your thermostat by a few degrees or even replacing your air filters in a timely manner.
Start a Home-Based Business
Earning extra income could also help you reduce financial woes and Shopify explains there’s no better way for seniors to do so than with a home-based business. You could pick up a few writing jobs or even work through established companies like eBay or Amazon. Depending on the size of your home and your abilities, you could also think about opening up an adult foster care business.
Trim Your Retirement Budget
Now that you know how to save money or even earn money with your home, it’s time to take a good look at the rest of your retirement budget.
Change Your Medicare Plan
Did you know that your out-of-pocket healthcare expenses could reach a staggering $285,000 or more in retirement? Depending on how much you have saved, those expenses could end up eating up most of your budget. So when you turn 65, or even after, be sure to do your homework and make sure you have a Medicare plan that fits your health and financial needs.
Limit Excess Spending
Achieving financial stability in retirement may require you to be a bit more frugal but that doesn’t mean you have to give up on all of your golden year fun! It just means that if you want to enjoy small pleasures, like eating out at your favorite restaurants or going on trips, you may need to find other ways to save. For instance, you could spend some time signing up for grocery store loyalty clubs or special senior discounts. Also be sure to shop around for utility providers.
Use Your Financial Benefits
Also be sure to check whether you may be eligible for benefit programs that can provide the added income support you need. If you served in the military, for example, you may be entitled to veterans benefits that can help you buy a home, pay for healthcare or even supplement your income. There may also be other financial relief programs that can help you avoid hardship.
Staying in control of your finances is essential for preserving your health and reducing stress in retirement. So make the moves you need to get your budget back on track. Then you can focus on really enjoying the years ahead!
Turn to Certified Homecare Consulting for additional information and insights!
Photo Credit: Unsplash