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Financial Standards For A 75 Year Old?

H/T @randomroger

Just like physical fitness, financial fitness can be a large part of our quality of life. What are the benchmarks and techniques that we need as we age for our financial health?

Financial Standards For A 75 Year Old?

    1. Pool resources

    As we age, it's common for our living arrangements to change. One way to minimize expenses is by considering shared living spaces or having roommates. Not only does this help to reduce housing costs, but it also provides an opportunity for companionship and support. There are a wide variety of shared living arrangements designed for seniors. Everything from fully independent living to full senior care. With an equally wide variety of costs associated. This can be necessary for some but a good option for many. This idea can also be much less formal. The options are nearly endless.

    2. Downsize

    For most people, their home is not only their biggest single expense, but also their largest asset. Making sure we are smartly maximizing this resource is important. Downsizing our living space is a practical step for many seniors. Moving to a smaller home or apartment can not only save on monthly expenses but also reduce maintenance and utility costs. It's essential to evaluate our current housing situation and determine if downsizing is a viable option.

    3. Sell stuff

    Over the years, we tend to accumulate a lot of items that we no longer need or use. Selling these belongings can generate extra income and declutter our living space. Whether it's furniture, collectibles, or unused electronics, there's almost always a market for second-hand items. But it is also necessary to remember that what may be valuable to us may be valuable ONLY to us. Be willing to just let it go.

    4. Network

    Building a strong support system is crucial at any age, but it becomes even more important as we get older. Getting to know friends, neighbors, and family members can create opportunities for mutual assistance. For example, someone in our network may have a skill or service that can help us with tasks or projects, thereby saving us money. Another example would be car ownership. It is really necessary for everyone in your network to own their own car? Is there someone who really enjoys driving? Would it make sense for the network to simply help offset some of the costs of car ownership?

    5. Create another income stream

    Retirement doesn't necessarily mean the end of earning potential. Exploring part-time jobs or side hustles can provide additional income and keep us mentally and physically active. It could be something as simple as freelancing, tutoring, or even monetizing a hobby or passion. Your success here can be very closely tied to your network. See above.

    6. Barter

    The concept of bartering is as old as time itself, and it can still be a valuable practice today. By exchanging goods or services with others, we can obtain what we need without spending money. This could involve trading skills, items, or even time. Time is one of the things that many older people have an abundance of. No reason we shouldn't be putting it to work.

    7. Explore alternative living arrangements

    While it may not be for everyone, considering alternative living arrangements can significantly reduce living expenses. This could involve living in a vehicle, a tent, or exploring house-sitting or caretaking opportunities. Some jobs even offer housing as part of the package, providing an opportunity to save on rent or mortgage payments. Oftentimes, this works best for a single individual, but there are many couples living this lifestyle too. You have to become comfortable with itinerate style work and the natural insecurities that brings. This type of living also frequently includes travel to different areas of the United States. If that is a burden, you will have fewer opportunities, but it is still possible.

    8. Learn about free resources

    Many communities offer a range of free resources that can help us save money. And some of these are just for Seniors. These include libraries, parks, food pantries, cooling centers, and more. Taking advantage of these resources can help stretch our budget and enhance our quality of life.

    9. Ditch bad habits

    Hopefully you've been able to do this well before now. But re-evaluating our habits every so often doesn't hurt. We all have our vices and habits that can drain our finances. Identifying and eliminating these habits can free up extra money that can be better utilized elsewhere. Whether it's reducing unnecessary spending, cutting back on unhealthy habits like excessive drinking or smoking, or finding more cost-effective alternatives, it's worth considering the financial impact of our choices.

    10. Plan for the unexpected

    You've had many years to stuff that cookie jar and add to the nest egg. How's it coming? If you aren't happy with it, don't sweat. Most people aren't. However, it's even more crucial now to have a contingency plan in place for unexpected expenses or emergencies. This could involve setting up an emergency fund, reviewing insurance coverage, and considering long-term care options. Being prepared financially can provide peace of mind and alleviate stress during challenging times.

    11. Insurance

    As mentioned above, reviewing your current and future insurance needs with a qualified professional is very important. Would you be surprised to learn that as we get older, many of us are actually paying for MORE insurance than we really need? It is not at all uncommon. If you no longer have people relying on your income for support, how much life insurance do you really need? Have you considered pre-paying some or all of your final expenses. Hard to think about but may eliminate the need for life insurance all together as long as the rest of your financial health is in order.

    12. Reverse mortgages.

    This is a tough subject. And one where you definitely need the guidance of a qualified expert in the field. Preferably a fee-based advisor. Using a home you may have spent a lifetime paying for to finance other expenses is a great use of what is often not a very liquid asset. But it can have significant downsides to your estate and heirs.

    13. Family

    It is vitally important that members of your family have at least a reasonable idea of your financial health. They don't need all the gory details, but a rough estimate is good for everyone. It prevents unnecessary questions and worrying. It can also provide signals that we need to re-focus on our finances a little.

    14. Epilogue

    You've made it! Time to reap a little of that you've sown. By implementing these strategies, we can make the most of our retirement years and enjoy financial stability. Remember, it's never too late to take control of our finances and make smart financial decisions.

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