This is an article ‘New Savings Tricks for Old Dogs’ by Marc Primo
Saving money is a lifelong skill that can benefit people of all ages – even retirees. Whether you're a seasoned saver or someone who has recently discovered the importance of financial stability, it's never too late to learn new tricks to boost your savings. Let’s explore some innovative strategies that can help you take control of your finances and achieve your long-term goals, from optimizing cash flow to embracing automation, exploring online job opportunities, and focusing on specific savings tactics if you’re a retiree. Surely, there are plenty of ways for "old dogs" to learn new savings tricks if they only know where to look and focus.
Today’s fintech innovations may be a bit daunting for old folks, but apps and platforms are getting to be easier to use nowadays. Automating financial strategies and obligations seems like the ideal method to quickly cross off chores such as saving money and paying bills from your to-do list. But letting go of manual control could still have a drawback.
When you automate your bills, you could be less inclined to check them over, catch yourself overspending, or find other problems. You run the risk of forgetting to make modifications as your goals or income change if you automate savings.
Though enrolling in automatic bill payments and savings transfers might be a part of your financial spring cleaning, there are still a few things you should always take into consideration.
Reviewing Your Cash Flow
A crucial first step towards improving your savings is to review your cash flow. This step becomes particularly important for retirees, as their income stream often changes. Especially these days as stocks and bonds both declined by 19% and 13%, respectively, making last year a bad one to invest in. With a loss of about 17% for 2022, the typical balanced portfolio of 60% stocks and 40% bonds had one of its worst years ever.
So, it’s best to take a close look at your retirement income sources, such as pensions, Social Security, or investments, and evaluate your monthly expenses as soon as you can. By creating a budget and tracking your spending, you can gain a clear understanding of where your money is going and make informed decisions. Online tools and apps like Mint or Personal Capital can simplify this process, allowing you to monitor your finances and identify potential savings opportunities.
Automating Your Finances
That now leads us you can automate your finances. Contrary to what most old folks may believe, automation remains an effective strategy for retirees as well. You can easily set up automatic transfers from your retirement accounts to your savings account with the use of available apps that are free online.
By automating your savings, you can ensure that a portion of your retirement income is regularly set aside without having to rely on willpower alone. Additionally, consider automating bill payments to avoid late fees and streamline your financial responsibilities. Services like BillGuard can help you track your bills and automate payments, giving you peace of mind while saving you time and money.
Moreover, automating your finances offers a range of benefits for retirement planning. It helps you stay organized, track your expenses, and identify areas where you can cut costs and increase savings. Additionally, automating investments through robo-advisors or online brokerage platforms enables you to grow your wealth over time without the need for constant monitoring and manual intervention. By embracing automation, you can simplify your financial life, achieve your retirement objectives, and enjoy the peace of mind that comes with knowing your finances are on track.
Try Exploring Online Jobs for Extra Profit
Like anyone, retirees can also benefit from the flexibility and income potential offered by online job opportunities. According to a report by Upwork, the global freelancing market is growing rapidly, with 59 million Americans freelancing in 2020, representing 36% of the total U.S. workforce. This trend presents a significant opportunity for retirees to leverage their skills and experience to earn additional income.
Platforms like Upwork and Freelancer provide a wide range of freelance work options suitable for retirees. For instance, retirees with writing skills can offer content creation or copywriting services, while those with graphic design expertise can find projects in logo design or illustration. Virtual assistance, customer support, and consulting services are also in demand. These platforms allow retirees to showcase their talents, connect with clients worldwide, and generate income from the comfort of their own homes.
By allocating this supplementary income toward savings, retirees may enhance their financial security and achieve their retirement goals more effectively. Even a modest additional income can make a significant difference over time, helping retirees cover expenses, save for unexpected costs, or enjoy leisure activities without dipping into their primary retirement funds.
Engaging in online jobs not only provides financial benefits but also allows retirees to stay mentally active, maintain a sense of purpose, and remain socially connected by working with clients from diverse backgrounds. It offers an opportunity to continue utilizing their skills and expertise while enjoying the flexibility and freedom that retirement brings.
Making Money-saving Adjustments
In addition to the general savings tactics mentioned earlier, retirees should also consider tailoring their approach to address their unique circumstances and goals.
Here are a few more strategies to help retirees save more money:
Evaluate Retirement Withdrawal Strategies
Determine the most efficient way to withdraw funds from your retirement accounts. Consult with a financial advisor to develop a withdrawal strategy that minimizes taxes and maximizes the longevity of your savings.
Consider Part-Time Gigs
Retirees who are physically and mentally able may choose to work part-time or take on consulting projects in their field of expertise. This can provide a steady income stream while allowing you to preserve your retirement savings for future needs.
Take Advantage of Senior Discounts and Benefits
Retirees often have access to various discounts and benefits that can help stretch their budget. From discounted travel fares to reduced rates on entertainment and dining, explore the senior discounts available in your area and make the most of them.
Review Insurance Policies
As you enter retirement, it's essential to review your insurance coverage, including health insurance, life insurance, and long-term care insurance. By ensuring you have the right coverage at the best price, you can avoid unnecessary expenses and protect your savings.
Explore Volunteering Opportunities
Volunteering not only allows you to give back to the community but can also provide personal fulfillment and social connections. Some volunteer positions may even offer benefits such as free or discounted services, further helping you save money.
Leverage Home Equity
If you own a home, consider exploring options like reverse mortgages or downsizing to unlock the equity in your property. However, it's important to carefully weigh the pros and cons and consult with a financial professional before making any decisions.
Remember, each retiree's financial situation is unique, so it's crucial to assess your individual circumstances and goals when implementing these strategies. Consulting with a qualified financial advisor can provide valuable guidance tailored to your specific needs.