Perhaps you’ve reached the age where retirement is on the horizon. Maybe you’ve started looking over your financial situation, and you have some concerns. While traditional thinking suggests that you should have your finances in order by the time you reach a certain age, that isn’t always the case. To help you achieve the financial stability you’re looking for, here are some key money-saving tips to implement as you start getting older.
1. Avoid Credit Card Debt
Credit and debt causes damage to people of all ages but it is especially hard to overcome after age 50. Unpaid balances are an anchor on your retirement savings plan. Financial advisors recommend taking care of large credit card balances before 50. As the number of online transactions continues to rise every year, consumers need to be wary of their spending habits. Try to avoid credit cards with a high-interest rate and think carefully before purchasing non-essential items.
2. Finalize Mortgage Payments
Paying off your mortgage will open up a lot of room and flexibility in your budget. Your home is one of your most significant assets. Paying off the mortgage takes care of massive debt and alleviates a lot of stress. Once you’ve paid off your mortgage, you can start a thorough financial review to see how you’d like to proceed moving forward.
3. Pursue Your Interests
As you get close to retirement age, you may start thinking about some other goals that you want to accomplish in life. Having financial flexibility allows you to follow your heart instead of worrying about making ends meet. Perhaps some financial freedom will allow you to pursue a new career. Studies show that more than 50% of consumers note that a lack of signage has prevented them from entering a business. It’s important to have the money necessary to make the career work. Saving money allows you to devote more time and effort into your passions as you get older.
4. Delay Social Security
While traditional thinking is that applying for social security quickly will help you secure better benefits, it’s actually the opposite. Research shows that delaying applying for social security can help you secure better financial terms. Perhaps your marriage complicates things. In the U.S. and other Western countries, research shows that over 90% of people get married before turning 50. If you decide to apply for social security, you and your spouse can still save money if the highest earner waits to claim benefits and the other spouse claims the spousal benefit.
5. Take Affordable Vacations
Taking affordable vacations is a solid strategy if you are on a budget. Instead of spending money on airplane tickets, consider taking a short vacation somewhere within driving range. You may find good deals on hotel costs by taking a vacation in the off-season. Another alternative to paying for a hotel is using a home-sharing service.
6. Rely On Public Transportation More Often
If available, using public transportation provides multiple benefits. You can get some exercise and explore the community from a different point of view. You can also save money on gas because you aren’t driving as often. Your auto insurance premiums will go down as well because less driving reduces the likelihood of you being involved in an accident and filing a claim. Research shows that over 30% of auto insurance claims are for windshields. Relying on public transportation can help you save money and lower your stress levels as well.
7. Hold a Yard Sale
Consider holding a yard sale if you have excess items that you no longer have any use for. This allows you to pass your items on to someone who can use them while also supplementing your income. If you’ve never done it before, it may be a good idea to wait for other people in your neighborhood are also hosting one. This way more people will be in the area.
As we get older, we tend to worry about money more and more. These money-saving tips should help you develop a plan to keep your finances in order.