Budgeting Tips for Lower-Income Seniors

Researchers estimate that over 21 million Americans live below the poverty line, which means they are living on less than $25, 000 a year for a single adult. Often, adults who are living below the poverty line worry about budgeting their money. If you are worrying about how much money you have saved up, here are some budgeting tips for seniors that can help you make your budget work.

Consider A Reverse Mortgage

One of the best ways to add income to your monthly budget is to obtain a reverse mortgage. A reverse mortgage is not like a traditional mortgage. In a traditional mortgage, a lender agrees to give you the money to buy your home, and you agree to pay that amount back plus interest. Reverse mortgages allow you to obtain a price for your house in either a lump sum or a monthly payment to you. Best of all, you don’t have to pay back your loan. Instead, you agree to let the lender have your home once you die or move out. Reverse mortgages can really help you increase your income without working. You can use a reverse mortgage calculator to help you determine how much money you can get for your home.

Cut Your Expenses

There are several ways you can cut your expenses without giving up some of the things that make life worth living when you’re a senior. First, you can use an app on your phone to help you get rid of expenses you don’t need. There are many different phone apps available. Some phone apps will help you get rid of subscriptions you no longer use, such as gym memberships, or magazine subscriptions. Other phone apps look at your expenses and find ways to save you money.

Speaking of your phone, if you are a senior, there are all kinds of discounts you can get–and you need to take advantage of them. You can get phones and services at a reduced rate. Hotel rooms, restaurants, and even movie tickets are offered at a lower cost to retired or senior adults. Some utility companies offer senior discounts as well, to help seniors budget their income as effectively as possible. There are lots of ways to reduce your costs and help you budget effectively.

Think About A Side Gig

One of the best things about retirement is that you no longer have to work at a job that you hate. If you worry about money, and you still want to work, you can consider a part-time job, or a side hustle. There are lots of side gigs you can do as a senior. If you have a hobby or a skill that you love to do, such as landscaping, why not put it to good use and earn some money as you have fun? That way, you can keep busy and earn some additional income to help your budget.

Erase Your Debt

If you have a lot of debt, one of your first steps needs to be reducing the amount of debt you have. Sit down and work out a plan to pay off your debt. Many financial advisors say to start with your smallest bill, pay that off first while continuing to make minimum payments on your other debts. Once you have paid off your smallest debt, you need to concentrate on progressively larger debts until you’re finished.

If you aren’t sure that you know how to work on reducing your debt, there are numerous credit counseling agencies that can help you work out a plan for your debts. Many credit counseling agencies are free for seniors, so check with your local agencies to see if there are free services available.

Be Spending Conscious

It can be hard to rein in spending. However, there are some ways you can cut your spending down and still buy what you need. First, consider buying groceries at stores that sell generic items, or that are discount stores. Nearly every market has at least one store that offers generic or store-brand merchandise at a lower price. Other stores offer senior discounts on specific days of the week, so you can save money if you shop on those days.

Also, consider buying clothing, furniture, and other more durable items secondhand. Secondhand, charity, or consignment stores offer all kinds of products, from kitchen to furniture to bedding to clothing at prices up to 80-85% below retail pricing. These kinds of purchases help you go a long way towards conserving money.

If you are a senior and you are worried about your income, you’ll be able to increase your income and reduce your spending by following some of these tips. Everyone deserves to have a retirement that is as worry-free as possible.

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