How to Make Ends Meet on a Limited Income
One of the challenges of senior living is creating, and sticking to a budget. It might not always be easy to keep spending at a limit, especially around the holiday season but there are ways to cut down on spending and make ends meet. As a senior, it might be particularly difficult to deal with budgeting and financial planning on a limited income, but it does not need to be. As we get closer to the holidays, here are some tips to help make ends meet and ease you through the new year. Before delving into these tips, it is imperative to have a baseline in place in terms of costs and finance. What is your current budget? Think about your fixed expenses (i.e. housing, groceries, gas, phone etc.) and list these. Also list variable expenses, such as restaurant meals, travel, gifts etc. Match these up against your current bank balance, and sources of income. This will give you an idea of how much money is coming in, and how much is going out. While it might be a scary number to look at, this is your starting point in trimming down costs so you know exactly what you are working with.
Check out the Local Senior Center
The first step, always, is to pay a visit to your local senior center. Not only can they point you towards resources that are designed to help you budget and cut down costs, but they do it for free.
Take advantage of the free services being offered, and learn about what your senior center offers. These might include financial counseling services, Medicare consulting to potentially help bring health costs down, as well as free health and wellness services - just to name a few. Work with your senior center to find avenues to cut down costs, such as free health classes rather than paying for exercise memberships, as well as seek out resources for advice and support.
A Little Thrifting Goes a Long Way
Another big way to cut down variable expenses is to thrift, rather than buy new. Firstly, this is an incredibly sustainable way to shop, since you are reusing items rather than constantly purchasing new ones. Secondly, you can find serious bargains this way.
Stores such as Salvation Army and Goodwill often carry designer brands for a fraction of the cost and also have great deals on homeware, furniture, and other items. If you find yourself spending a lot on random house items or clothing, this is a compromise that allows you to indulge your retail therapy habits without depleting your budget.
Separate Your Finances
Sometimes, it is easy to get carried away with shopping and other habits. However, in the long-term, this can be detrimental since you have a finite amount of cash on hand. If you are having trouble saving up, it might be time to separate your bank accounts and stock away some money before you are tempted to spend it.
Many seniors tend to keep two accounts, one for daily expenses and another for long-term goals. Your daily expenses account should contain enough money to ideally last you for a month for fixed and variable costs. You can evaluate your spending periodically through the month to see where costs are spiking, and how you can spend more effectively. Once you see how much money goes towards small expenses such as coffee or a meal out, and you see how much it adds up to, it becomes easier to save. Use your long-term account only for emergencies, and as a way to save up goals such as travel.
Revisit Your Budget
A lot of times, we make budgets and stick to them for a few weeks...and then promptly go back into old habits, but resist this urge! Remember that budget you made at the beginning of the article? Go back to that periodically.
Set a time for yourself each month to see your budget, how well you are sticking to it, and plan out the next month. If you see yourself hitting your budget early on, you can be proactive rather than reactive to bring down costs and keep your forecasts accurate.
You might find that your budget varies month-by-month, which is natural. However, figuring out which months tend to see a spike (for many, it is November and December, close to the holidays) and which months tend to be easier on the wallet can help you plan more accurately for the future and spend your money wisely.
These are just some ways to mitigate cash flow issues and make ends meet while on a limited budget. With some careful forethought and planning, finances do not always need to be a source of undue stress.
