The investment game always works in a way where you have to keep on placing investments to acquire that consistent income stream. Therefore, everyone should realize that retirement will never be a sign of unlimited cash. By the end of the day, retirement means that you’re already done working, and you wish to take a rest due to age or probably because you’re tired of it already. Nowadays, there is a constant growth of retirees filing for bankruptcy due to their attempts to stop monthly pensions, while suffering from rising bills and diminishing savings on their account.
There may be several factors that we didn’t personally commit but may have significantly led towards the bankruptcy of retirees. What’s worse is that the rising life expectancy of the elderly, despite being a benefit, may cause financial trouble for those who are living for more than 80 years. This is terrible news for those who don’t want to stay at a retirement home for the years to come. Additionally, a survey conducted by the Consumer Bankruptcy Project states that the number of seniors filing for bankruptcy for senior citizens. It shows that bankrupt retirees ranging from 65 to 75 years old have spiked from 1.2 per 1000 to 3.6 per 1000 in early-2013 to late-2016, respectively.
Budgeting Is The Solution
Budgeting is proven over the years to be the perfect form of finance-saving tactic to ensure growth and better savings for emergency purposes. The elderly who know how to do this don’t resort to bankruptcy. It even enables them to save more money for the years to come and may opt to keep most of the pension they collect rather than spend it like it’s payday. However, a little discipline should always be applied when doing this, and it may mean sacrificing the luxuries you once enjoy on a regular basis. After all, you’re getting older, and the things you do are starting to get limited. So why not limit your spending habits as well?
Schedule And Estimate
The best tip for budgeting is to organize your finances. Start organizing by focusing on all your bills first. Collect all your statements, bills, payment stubs and your list of debt from friends, so then you can keep all in a single folder. Organizing those papers places all your priorities in one place so then you can focus on them first before you start spending on luxuries or whatever you want. Set a schedule for separately paying your bills and statements, and compare your weekly or monthly budget with those expenses.
Eventually, your budgeting and payment schedules will reveal your average weekly or biweekly expenses. Figuring out your average expenses gives you insight over the money you can save for the long term, and it even improves terrible spending habits as the average expenses can serve as a reminder. Additionally, setting up a payment schedule for your bills helps you become disciplined in paying as you’re setting a due date for everything already.
Retirement Means Saving Your Money, Not Just Your Health
Retirement may be tempting enough for you to spend all your money because this term is equivalent to relaxation. But you have to remember that it also comes with the cruel reality of not getting paid too much like in your prime when you were working hard. That’s why you have to face the truth and learn how to save your money instead. In that way, you will be able to enjoy your retirement for a longer time without the need to worry about your dwindling savings anymore. But if getting broke is inevitable, then at least make it a goal for you to be broke once you reach more than 90 years old instead! In that way, money won’t matter once you reach such an advanced age.