Living Well on a Budget

Finances are an integral part of everyone’s life. However, as a senior, you may find yourself living on a budget for the first time in a long time. Our lifestyle and priorities often change as we approach or navigate retirement, and these new circumstances may influence our spending and saving patterns. During the transition, it’s important to take a closer look at your finances to determine if you’re still on the best path for you and your family.

When moving to a fixed income, there are some steps you can take to make sure you’re on the right financial path and can continue to live the type of life you want.

Figuring out what Matters 

Figuring out what matters most to you will help you budget for the life you want to live. Without a realistic budget based on your unique life, it can be easy to fall into financial trouble. Make sure you’re living within your means and not overspending. Cutting back and downsizing can be a new adventure and help set you on the path to a stable and healthy financial future.

Helpfully Strategies, both for Today and Tomorrow 

Now is as good as any to figure out a few strategies for your financial future, both for today and the coming years. Here are some fun tips to keep you on the plan for your future: 

1. Use Systematic Withdrawals: Once you’re retired, make sure you aren’t reaching into your retirement funds at will. Instead, make sure you’ll always get a “paycheck” even when you aren’t working anymore! Do this by setting up a direct deposit from your investment accounts into your checking accounts every month. Setting up your own paycheck will help you from overspending in your retirement. It’ll also let you finally set your own pay! 
2. Consider Housing Alternatives: With the kids gone, now is a great time to downsize. You can trade-in your high maintenance home and yard and move into a smaller condo or even a tiny home [link to HC blog post or other page on the site] that you can better manage. Not only will you save time on maintenance chores, but you’ll also be saving money. 
3. Use Bargains and Discounts: After all those years of waiting, it’s finally time to cash in your senior discount. Many restaurants, theaters, and other establishments offer discounts for seniors or those over 55. If a discount isn’t advertised, ask an employee to see if they still offer one. 
4. Make it Fun: Make financial planning fun for the whole family. Turn saving into a game and keep a running point total based on how much money you’ve saved. Encourage members of the family to join in. Turning budgeting into a game could be a great way to teach grandchildren good fiscal habits. 
5. Allow Choices: Don’t budget everything to an exact cent. Many of us tend to rebel against such close restrictions. Instead set aside a pool of flex money you can allow yourself to spend on whatever you choose in a given timeframe. If something comes up, like a flat tire, you can use your flex money to cover the cost and wait till the next spending period to get those new shoes you had your eye on. 

For more help with planning for your financial future, consider the budgeting tips outlined here.

Whatever your retirement dreams look like, you can take control and make it a reality by practicing good financial steps. With your financial life in order, you can rest easy knowing your golden years will be some of the best years yet.

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At Harmony Communities, we feel strongly that each resident has a sense of home. That they come home from work and feel pride in their environment and in their place in the greater community. That families are comfortable raising children in our neighborhoods, and that couples and singles know that they belong to something bigger than their four walls. In other words, we seek to create harmony within each community, making our communities not just passable, but peaceful, safe, functional, and beautiful.