Before you create a budget, you need to know how much income you have. Add your Social Security income to any pension payments you receive each month to arrive at the base amount. If you receive investment dividends or bank interest, review your records to determine how much you typically receive each month. Then, create a budget based on the lowest amount.
For example, if you receive $100 some months and $50 other months, add $50 to your Social Security and pension payments. If you receive more than you budgeted, you can always put it in your savings account.
Now that you know how much you have to spend, make a list of your monthly expenses. If you still live at home, remember to include your mortgage or rent payment, utility bills, homeowner or renter insurance, property taxes and other necessities. Seniors who reside in assisted living communities or memory care centers should include their standard room and board charges.
You may also need to include insurance premiums, professional fees and other expenses. If you visit the doctor regularly, don't forget to account for co-pays and coinsurance. Finally, list the cost of any extras, such as magazine subscriptions, books and toiletries.
If your expenses exceed your income or if you just break even, don't panic. You may be able to reduce some of your monthly costs.
To reduce your expenses, review your bank and credit card statements to determine if you're paying for any subscriptions you're not using. For example, if you watched one Netflix movie 3 months ago and haven't logged in since, you can probably do without that monthly subscription.
If you can't decide which subscriptions to cancel, figure out which ones give you the biggest bang for your buck. The Disney Bundle Trio gives you access to Disney+, ESPN+ and Hulu. In contrast, a Netflix subscription only gives you access to Netflix. If you just can't live without your favorite service, look for ways to save. For example, if you're an Xfinity subscriber, you may qualify for a complimentary Peacock Premium subscription.
Next, take advantage of any senior discounts you can find. Some stores offer daily discounts, while others set aside one day each week to reward senior shoppers for their loyalty. For example, Ross Dress for Less offers a 10% senior discount on Tuesdays. Many supermarkets and restaurants also offer discounts for older adults. Here's just a sampling of participating brands:
If rising costs have made it difficult to live on a fixed income, enroll in as many senior benefit programs as possible. Some programs have income limits, but others are available to all seniors. For example, the U.S. Department of Treasury offers free tax assistance to adults aged 60 and older. You don't have to meet any income or asset requirements to use this program.
The Senior Farmers' Market Nutrition Program provides coupons to seniors with incomes at or below 185% of the Federal Poverty Level. If you qualify, you can use your coupons to purchase fruit, vegetables and other eligible foods at farmers' markets or roadside stands. Every program has different eligibility requirements, so use BenefitsCheckUp® to find resources in your area.
If you have several debts, try consolidating them. Consolidation doesn't get rid of your debt, but it does roll multiple accounts into a single loan. If your consolidation loan has a lower interest rate than your current debts, you may be able to reduce your monthly payment. Rolling several debts into one loan also makes your finances easier to manage.
Even if you have limited funds, there's no need to get stuck in a rut. You can still walk around a local park, borrow books from the Monument library or pass the time with a free concert at Limbach Park during the summer. Here are some additional ideas to help you save money:
