Financial Tips for Seniors – How to Live Well on a Fixed Income

Day-to-day living on a fixed income can be extremely tough for anyone. This fact is especially so for seniors on fixed incomes. As nothing much in life can be done without money, you need to know how to make the most of your senior years and live well on your fixed income. Below are a few financial tips that will help you through this phase in life where income is a fixed derivative of the efforts you had put in, during the working years.

Pay the Essential Bills First

When you live on a fixed income, you need to prioritize and figure out what the essential and the not-so-essentials are. This means you need to compile a list of all essential payments, which will include electricity and gas payments, water, car, and life insurance payments, as well as, medications. Once you figure out what the essential payments are and get them out of the way, you can keep the rest of your money for other payments.

Make use of Senior Citizen Discounts

This is an excellent way to make your income stretch that extra mile. There are loads of senior citizen discounts you can avail yourself of. Many companies and organizations offer various discounts to senior citizens. The discount may apply to those over 50s or 60s seniors. What you need to do is find out which discounts you are applicable for and make the most of them. For example, many restaurants and insurance companies offer good discounts to seniors. You should call ahead and find out about these discounts before going to the restaurant or obtaining insurance. Furthermore, various travel companies offer senior citizen discounts. So, find out about these too when considering going on holiday. Even if it is a not-so-great discount, you can still save at least a dollar if you make use of it.

Set up an Emergency Fund

An emergency fund is something everyone should have irrespective of their age. You never know when something might happen, and you need a lump sum of money. This doesn’t mean you have to fork out hundreds of dollars every month. Even 20 dollars set aside on a monthly basis can accumulate and make a neat little nest egg. Make sure this money is in a separate bank account and not in your normal one. You will never save emergency money if you have it in the same account as the rest of the money. This money will be a blessing if there are any unexpected medical emergencies or car and home repairs.

Use Coupons

There is a myriad of coupons that enable you to save money on groceries, restaurants, and medications. These coupons are almost always available in newspapers and online. Simply cut out the coupons and keep them whenever you wish. One of the greatest things about coupons is they expire in three or four months. If you hang on to them, you can use them when some things go on sale, which will help you to save more money.

As a senior, living on a monthly fixed income, you need to be strict about how you spend your money. Plan a budget and make sure you stick to it. This way, you are aware of exactly how much you spend each month. If you adhere to the above financial tips, you can be sure to save quite a bit of money AND live well.

This article is courtesy of ActiveAdultLiving.com®, the premier website of more than 8,500 senior retirement communities in the US and Canada