The Golden Game Plan A STRONGER FOCUS ON FRUGAL FINANCES
As you prepare for retirement, it’s never a bad idea to critically examine your current expenses and determine which costs you should keep or discard as your income changes. Here are three thoughts on streamlining your budget for greater security in your senior years. A Redundant Risk Evaluation When raising families, we implement ways to ensure financial security if unexpected circumstances affect a breadwinner’s income. Expenses like disability and life insurance may have been critical costs in years past, but perhaps you’re at a point where these policies could be reconsidered. If you’re approaching retirement and your children are grown and out of the house, you may no longer need to cover yourself
surprise you that the average American family tosses $1,600 in produce annually! Although you’ll likely have fewer mouths to feed as you age, the likelihood of at least some of your groceries ending up in the garbage can is still high. Planning your meals in advance and purchasing only the necessary items to prepare them is one way to reduce unnecessary food spending, especially as the likelihood of sticker shock at the supermarket seems slim at best in the new year. Midweek Moments of Meaning One of the beautiful things about reaching an age when you’re done raising young children is that you’re no longer beholden to schedules that accommodate their needs first. Gone are the
days of waiting for summer or holidays, which are among the priciest times of the year to travel, to take a vacation. With more flexibility in your daily schedule, you can now plan trips in a more budget-conscious way. Flights and accommodations often cost less during weekdays or in the spring and fall, and you can save even more by taking advantage of AARP discounts where available.
in the event of a disability. Additionally, a life insurance payout for your family may not be as critical now as it would have been if you had passed away when your kids were younger. Simple Suppers That Save Cents A food budget should be based on what you throw out, not what you eat. It may
Cushion Your Crisis
TIPS FOR CONQUERING UNEXPECTED COSTS
A loved one in another state becomes incapacitated or seriously ill. A “restructuring” at work leaves you with the sudden need to find a new job. A severe weather event damages your property or impacts your livelihood. These are just a few of the unexpected events that can darken our economic outlook and upend our financial plans. The best way to avoid a disaster is to prepare. Here are three reminders that can help even the most diligent savers better protect themselves when life changes unexpectedly. Anticipate financial adversity. Let’s say your income dried up today. How long would you be able to live without resorting to credit and loans (and the interest that comes with them)? If your answer isn’t “3–6 months,” it’s time to consider ways to save for an emergency fund like never before. Even if you’re retired or (hopefully) don’t face an unforeseen financial crisis, having at least this amount saved can help you address other matters, such as a sudden out-of-state trip to attend a funeral or care for an ill loved one over an extended period. Choose car insurance wisely, not inexpensively. It may seem counterintuitive, but spending more on auto insurance is a wise way to protect your money. Here’s why: The more expensive your insurance, the more it often covers. Seeking a low monthly premium can leave you paying a deductible of $1,000 (or even more) for repair costs in the event of an accident. If the extent of the damage is large enough, the monthly savings of a cheap premium could mean very little compared to the hefty amount you’ll be required to shell out before your insurance even kicks in.
When purchasing auto insurance, it’s best to select a policy based on having to use it someday, not just how much money you can save each month. Safeguard your estate. Although it may be an uncomfortable
topic for many, a truly protective financial plan should also include
consideration for how your finances will be handled, including where or to whom they’ll go, upon your passing. If it’s been some time since you’ve reviewed your estate plan, it’s essential to do so as soon as possible to ensure all your critical documentation and details (medical directives, trusts, beneficiaries, powers of attorney, etc.) are up to date and correctly reflect your wishes.
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