No matter how old someone is, managing finances can be a bit tedious. Elders, in particular, might see the most difficulty since they no longer have an income stream.
Fortunately, the task is far from impossible, and once you get a hold of your finances, managing them can become second nature. Here’s how elderly people can manage their finances.
Make an End-of-Life Checklist
You may be thinking that this is a grim start, but it’s a topic that should always be addressed sooner or later. Creating an end-of-life checklist ensures that your wishes are fulfilled. This definitely includes what happens with your remaining finances.
We understand this topic can be a bit uncomfortable to talk about as no one wants to talk about their future demise. But bear in mind that creating this list doesn’t mean you’re going to die soon. It’s simply a way for you to plan ahead for the future. Make sure to set up a date and time to discuss this with your family.
In regards to your finances, you can choose where it will go and what you want them to be put towards. Are you planning on divvying it up between your children? Or do you plan on using them towards the funeral costs? How you go about this is ultimately up to you.
You might want to consider making a printable estate planning checklist to get your financial plan in order.
Try to Set Up a Passive Income
Since you’re most likely in retirement, you no longer have a paycheck to depend on. However, that doesn’t mean you can’t make some money on the side. Because of how far the internet and technology have evolved, you can generate revenue from the comfort of your own home.
Whether you fill out surveys online or you open an online store, there are plenty of ways to keep yourself financially stable. You can also rent out any unused space you might have or become a paid tutor.
Create a Budget
For elderly people, decluttering your finances and budgeting have never been more important. Because of your limited funds, you need to have a clear understanding of your financial situation. Even if you have a paid-off house or even live with your children, you still have expenses to pay, like groceries and utility bills.
If anything, this is why it is recommended that all elders look into acquiring a passive source of income. It can help you cover the costs while mitigating how much you dig into your retirement funds.
The 50/30/20 method works wonders here as you put half of what you make towards these necessities, put 30% towards yourself and the remaining 20% goes into your savings. Or, you can combine the 30% with the 20% and have an even 50/50.
Ask Your Family for Help
It’s possible that you might not be able to afford the costs of living. In this case, you can always ask your family for financial help if need be. You might even consider changing your living situation such as downsizing your home, moving in with your family, or going to an affordable retirement community.
