It’s Never Too Late to Follow a Budget

As we age, many of us worry about whether we will have enough money to provide for our future needs. Rather than spending time worrying about it, experts say even if you have never followed a monthly budget it is not too late to create and follow one. It will give you a sense of where you stand and the confidence to make any needed adjustments along the way.

The National Council on Aging (NCOA) and LeadingAge LTSS Center @ UMass Boston found American adults have a financial literacy rate of around 50%, and many feel anxious when thinking about their financial situation. However, they want seniors to know money management is not as complicated as it sounds and a budget allows you to get a good picture of where you stand now and how you will fare in the future. Medicare expert Brandy Bauer, former Director of NCOA's MIPPA Resource Center, says, “being educated on how money management works—and learning how to implement strategies for managing debt, saving more money, and stretching the dollars they have—is so important, especially for seniors on a fixed income.”

To get started, be sure to get information from trusted sources to help you build good money and debt management skills. NCOA offers tips such as using a budget calendar to track spending. This allows you to more easily understand your monthly income versus expenditures; and seeing it on paper lets you discover strategies on where you may be able to reduce expenses.

Money saving tips include looking into special discounts designed for seniors. While some are intended for those on a lower income such as heating allowances and reduced prescription drug prices; other things like cheaper phone plans to public transportation and private entertainment venues are available to most seniors.

If you are a homeowner, you may want to meet with a financial advisor to see how you can leverage the value of your home to increase your monthly income. Managing monthly expenses should also include making plans on how you want to distribute your money after your demise.

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