Budgeting 101: Simple Steps to Budget Money as a Senior

Personal Budget Plan (Photo credit: Wikipedia)

Spending money is as simple as breathing. Let’s admit it, we can spend thousands of bucks in just one day! That is, if you have no financial issues. But if you are on the verge of tightening your belt, budgeting becomes a part of your to-do list. When you are an elderly person, you might think budgeting is hard simply because you are at your golden age. Yes, it seems a big challenge; but in reality, there are so many techniques you can execute to make the most of every single penny in your pocket. 

Here are 4 simple ways to help you in your monthly budget. 

● List Down Sources of Money - As a senior, obviously, you no longer have monthly salary to expect from a full-time job. However, you will have other sources of income by this time. Make a list of all these sources, such as monthly pension, social security check and part-time job (if applicable). Remember to note down ALL, which means everything or every way in which you gain income is included. Get sum of these income generating sources. From this, you will get an idea of how much money available for you in a month. 

● Create a List of Expenses - On a separate sheet, make a list of all the expenses you need to have. For household expenses, it usually includes utility bills, consumable grocery, telephone service, cable TV, Internet service and house rent (if you are renting). If you own your home, add the property tax in your list. In the event that you pay your taxes once a year or twice a year, break the tax fee into monthly figure. Many seniors consider property taxes as additional burden to financial status. Other expenses include mortgages and medicines. Calculate all these expenses and get the total amount. Deduct the total expenses to the monthly available money. 

● Set Aside Money for Savings - After subtracting your total expenses from your monthly income, you will get a remaining amount of money. If you get zero or negative remaining balance, it is a difficult situation. As much as possible, set aside money for your savings. Saving money is a clever technique just in case you will need extra cash in the future. Who knows, you much need emergency fund for your home repair or car maintenance. So each month, make it a habit to put at least a small amount of bucks in your saving account. You can either open a savings account in a bank or have it in your piggy bank. 

● Look for Medical Aid Programs - At times, medical bills take up huge amount of money from your budget. For seniors with health issues, having medicine maintenance is often neglected to lessen expenses. Yes, this is very risky to the health. And so, to minimize expenses without compromising your health, look for health programs that can help you finance your medicines. There are many NGO’s (non-government organizations) and government sectors offering medical assistance. Some programs can aid you in paying for your medications or other health-care bills, and can sponsor you in buying alert systems such as medical guardian. 

Budgeting can sometimes make your head spin. That is why, it is essential to take into account a few techniques to guide you. Otherwise, you will end up miscalculating your money and getting broke. Once you get used to these strategies, you can allocate your money effortlessly.