The COVID-19 situation has impacted everyone in different ways. Even though we were taking measures to guard ourselves against the virus, many of us have missed out on the other significant problem of financial security. According to a study conducted by the Agewell Foundation, nearly 85% of the seniors faced hard times during the COVID-19 pandemic due to financial instability.
Planning and saving finances have turned out to be a tough job these days. Seniors relying just on fixed deposits or pension plans may make them vulnerable to sudden expenses.
With that in mind, here are some simple financial tips for money management and suggestions to help seniors take care of their finances.
Plan a Budget
The most important tip for money management is to plan a budget considering all the possibilities. Creating a financial plan based on your income, expenses, and upcoming objectives will help you with any short or long term goals. Restricting your current costs and being realistic about your budget is necessary for seniors because retirement income will most likely not be equal to the income earned during the prime years.
Monitor your Budget
After creating a budget plan, the most vital tip is to monitor it. Monitoring your budget plan will help you stay on track and be practical about it. Also, being disciplined towards your budget plan will enable you to avoid any unwanted additional expenses and boost the efficient use of your money.
Learn about Finances
Learning about finances can help you make more informed investments, improve your money managing skills, and lead to wealth preservation. Your knowledge about finances will also help you to keep a close eye on the risk factors involved in various types of investments and stay updated about the ideal ways to invest your money for better returns.
After retirement, investments are excellent ways for senior citizens to gain financial stability as the monthly salary stops. Thus, seniors should create a financial portfolio to generate a steady income and a secured future. Senior Citizen Savings Scheme, National Savings Certificate, Bank Fixed Deposit, and Monthly Post Office Income Scheme are a few conventional financial modes for investing.
Consider Health Insurance
It is advised that senior citizens should have a health insurance plan to meet their medical expenses as ageing brings along various illnesses. So, consider all current medical expenses and prepare for future unavoidable costs.
Avoid Taking Loans/Debts
Seniors must stay away from loans/debts and shouldn't avail any bank loans or schemes that need them to borrow money. Paying off your loan during old age can cause a financial burden leading to stress. Instead, one can choose to cut down on unnecessary expenses for a debt-free future.
Avoid Keeping a Huge Amount of Cash at Home
It's a big no when it comes to keeping large sums of cash at home. On the other hand, the use of online payment options and cards can minimize your excessive expenses. It's also easy to monitor your expenses, purchases or paying bills via online payments and cards. Plus, many card issuers and banks refuse any transaction that looks suspicious, thereby protecting you before anything goes wrong.
Make a Will
We understand creating one’s will is a difficult and unpleasant financial tip yet a necessary one. Confronting your mortality is a challenging situation, but making a will offers peace of mind as your wealth will be used and disbursed as you intended.
Talk to Experts
There is nothing wrong with seeking experts' help in managing your finances. You can always discuss your budget plans, loan/debt-related issues or long-term financial goals with an expert for accurate guidance and assistance.
The above mentioned financial tips can be helpful for everyone, but specifically for senior citizens to manage their finances in old age. To know more about finances and other related topics, do attend the various online sessions organised by Khyaal. To join the Khyaal community, click on the link.
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