Financial Resolutions the Elderly Must Make in 2020

Getting finances in order is one of the important concerns among the elderly. Many of you post-retirement rely on the little amount of pension for regular expenses, which is why it becomes more crucial to stay on top of your finances.

Post-Christmas, you are left with very little money posing a serious threat to your life. According to a study conducted among 1,000 senior citizens in Ireland concluded that:

  • 21% of them failed to save enough money,
  • 18% regretted spending too much money on non-essential things,
  • 15% regretted not investing money,
  • and 10% felt devastated about piling up debts.

It is essential that you know how to live within your means. Studies have discovered that even senior citizens who have been enjoying a good cash inflow fall off the financial track without realising their spending limits and sometimes making wrong investing decisions.

New Year is not far off. On the arrival of the New Year, everyone makes a few resolutions such as weight loss, giving up bad habits, saving money, and the like. As a senior citizen, if you are concerned about your financial condition, you should make these resolutions.

Resolute to get a clean bill of health

As you age, you catch several diseases. Health issues like hypertension, hyperglycemia and joints pain are very common among the elderly.

While you are living on a little amount of pension, disbursing your money in medical expenses seems to be a bit difficult.

Not all senior citizens will be lucky enough to be out and about, but you can keep some problems at your arm’s length.

GPs generally recommend staying active as much as you can. Follow your doctor’s advice. Brisk walk and jogging can help you stave off respiratory diseases, keep blood pressure and blood glucose level normal.

Having a pet can help you feel less depressed and anxious. The more active you stay, the better your health will be, and you will visit your GP less frequently.

Be determined to pay down your debts

On the arrival of the New Year, more than 80% of people including senior citizens find themselves in a debt trap due to overspending during Christmas.

There is no use of raking up what you have done. Instead, you need to find out what you need to do to ameliorate your financial circumstances.

  • Talk to your lender and credit card company if they can put you on a lower-interest-rate deal. This will work if you have a long-term relationship with lenders and have a good payment history. Some direct lenders provide senior citizen discounts on their deals.
  • Apply for a 0% balance transfer card. If you are eligible to avail this facility, you will pay off your debt without interest. However, you need to pay off the whole of your debt within the stipulated time. Otherwise, you will end up paying very high interest.
  • Take out a consolidation loan if you have been juggling with multiple debts. You will pay down a consolidated loan only at fixed installments.
  • Make sure that you do not take out a new loan to fund non-essential expenditure. Try to curb your impulsive spending. If you come across a financial emergency, you can take out a doorstep loan. These loans come with flexible payments and hence easier to manage than other short-term loans.

Spend cautiously and save automatically

Whether you are relying on pension funds or you have a side income source, you need to be prudent with your spending.

Look at your previous income statements to understand a spending trend. Evaluate where and how much you had been spending. Consider the areas where you can cut down on.

Cutting back on non-essential expenses will help build your savings account. Nowadays the internet is inundated by various online apps that help with budgeting, savings and investing money. You can automate every aspect of your financial life.

  • You can set up an automatic payment of credit card bills, loan payments and utility bills to avoid falling behind repayments. Timely payments will help you build your credit score too.
  • You can track your spending. Set a limit and the app will notify you as you overstretch your budget leading to overspending.

There is no doubt that you would have spent more than your budget at Christmas. If you do not want to be depressed in 2020, you should take the financial resolutions mentioned above. These resolutions will help you have a stable financial condition.