7 Money Management Tips for Seniors

By Heather Johnson, on April 9, 2008

Many of us are working toward a comfortable retirement so that we can relax and enjoy our golden years. Money experts often give advice on how to reduce debt and retire early, yet they overlook the people who have already reached retirement age. There are plenty of seniors who are still in need of some financial guidance.

Photo by Axel-D via Flickr

Below are seven helpful money management tips for senior citizens:

1. Start a Household Budget

Not only should you outline a personal budget for daily living, you need to make sure you stick to it. As you can imagine, every penny counts when you’re no longer employed full time.

2. It’s Never Too Late to Find a Financial Planner

Yes, you should have already discussed asset allocation strategies with a professional. However, not all of us take money management seriously when we are young. If you have never met with a financial planner, do it now. Most seniors are living on a modest fixed income and the best way to protect it is by planning different strategies as early in life as possible.

If you are financially savvy and would like to do this yourself, you could try out online financial planning software, such as eFinPLAN.

3. Take Care of Yourself

Now, more than ever, you need to become a health nut. An ounce of prevention is worth a pound of cure, so stay on top of all regular checkups. Get your flu shot every year, submit to eyeglasses if you really need them and stay away from your grandbabies when they are sick.

4. Don’t Ease Up on Your Debt

Do you feel like you deserve a break from aggressively paying bills? While your lifestyle may have slowed down, your finance charges have not. Credit card debt isn’t just affecting college students and young professionals. It’s taking a toll on many seniors, as well.

5. Stop Giving Handouts

Some parents (and grandparents) give until there is nothing left. If you have a family of moochers who are depending on your fixed income to bail them out of trouble, cut them off now. This is easier said than done for many people, but you can’t let family take advantage of you until you’re broke.

6. Apply for Social Security

It is still up for debate as to when you should apply for your Social Security. The earliest you can collect is age 62, though your payments will be higher if you wait until 65. While it is more cost-efficient to wait, don’t do that if you really need the money sooner.

7. Don’t Postpone Estate Planning

While it may be a bummer of a topic, you really shouldn’t postpone the matter of your estate planning. Ensure that all your last wishes are legally documented, even if you are the last surviving member of your family.

Being sensible with your money has never been more important than this moment in your life. There are some seniors who throw caution to the wind, living as if every day is their last. On the contrary, you have a lot of life left in you. In fact, there are more living centenarians today than ever before. In other words, you need to make that money last.

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Heather P. Johnson is a freelance writer, as well as a contributor for Credit Card Lowdown, a site specializing in helping consumers find 0 apr credit cards. Heather welcomes your comments, questions and writing job inquiries at her email address heatherjohnson2323 [at] gmail.com.

All posts by Heather Johnson

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