How Smart Seniors Budget and Manage Their Money

Retirement gives you the freedom to experience life in a way that you may not have been able to when you were working full time. 

Creating a good budget and managing the money coming in each month allows you to get the most out of your golden years. Consider a few ideas on how smart seniors budget and manage their money.

Make Good Use of Free Online Tools

Knowing where your money goes is the first step to managing your money. Keeping up with spending on paper can be daunting and hiring a personal accountant can be expensive. 

Free websites like Mint.com can securely give you a complete view of your finances. All of your accounts will be connected on one easy-to-read page. Bills, credit cards, checking accounts, and subscriptions can be monitored so that they do not get out of hand. 

Mint will track your spending, give you insights on smarter spending, and even give you a daily snapshot of your net worth. If you like to have paper files, you can easily print reports for your records.

Find a Medicare Specialist

Fear of the cost of healthcare is one of the factors that keep people from retiring early. Health insurance options available to seniors in today’s market offer comprehensive healthcare without eating up a huge amount of your monthly budget. 

Getting help finding the right plan is as easy as looking for a broker who specializes in Medicare plans. Brokers who sell Medicare plans are usually paid by the insurance company. Helping you purchase a plan should not cost you any consultation fees. 

If a broker wants an upfront consultation fee, look for another one. An experienced broker will know which plans are accepted by your current doctors, cover your prescription medications, and give you coverage for health expenses wherever you travel on a regular basis. 

Some companies, like Optimized Health Plans, know that if you purchased a plan when you turned 65, you may not be locked into that plan for the rest of your life. If you have pre-existing health conditions, a Medicare specialist can direct you to plans that have little or no health screenings to change health plans.

Talk to other seniors about how they budget their retirement income. Seniors who are five to ten years older than you may be able to help you avoid pitfalls and extend your savings by informing you of what has and has not worked for them. 

Being on a fixed income does not mean limiting your freedom. Creating a detailed budget and managing every dollar that you spend will help you to enjoy every moment of retirement.

Worried About the Future? Take Control of Your Finances Now

Many people tend to forget that all their habits and spending decisions affect their financial health. Excessive lifestyle and wealthy appearance aren’t worth a dime if it isn’t supported by a realistic and sustainable budget. 

Keep in mind that in today’s market, anybody can lose a job or receive a salary cut. To find the financial footing, you will have to plan ahead and build new habits. Every decision counts and should lead to you living on less than you make.

In your head

Managing money is one of the key skills enabling you to plan the future. It means that the first thing to do is to set your long-term financial goals. In order to do that, you first have to list all your assets and liabilities. This will give you your net worth- a clear picture about your current financial whereabouts.

Next step is to create a personal budget. It’s crucial to know where does your money come from and how are you spending it. This helps you keep track of countless little things you can do to reduce the everyday expenditures. So, put effort to cook at home more often, and save some energy to shrink the bills. Small expenses amass to a large amount after some time.

Take your time when making big decisions and avoid buying on impulse. Visiting a thrift shop won’t hurt your reputation, and it most certainly won’t harm your budget. Learn to say no, and to delay the gratification. Sky is not the limit when it comes to spending, it should be set in your head. 

How about a raise?

If you have debt on your list, try to pay it off as soon as possible. A student loan or a mortgage has its benefits, but interest rates can take a big chunk of your earnings over time. It helps if you have a good credit history, which opens up better loan opportunities. Check your annual credit report, and always strive to improve your credit score.

Sometimes this doesn’t suffice, and people must consider how to earn more money. Finding an extra job is a nice alternative but it’s not always an option. Try to ask for a higher pay, or take on some side projects and extra working hours. Earning money online is today more popular than ever, and there is a myriad of ways to pull this off.

The stock market is another great opportunity for those who know the facts and figures. Even they would have to educate themselves and do the research about the types of brokers and stock hunters. Compare binary brokers with those operating in banks and other financial institutions, and decide which path is best to take. 

Early bird

Even if your expenditures are lower than your income, it’s best to save or invest the money left over. Many make the mistake of spending a ton of cash as soon as they get a raise or other financial boost. They sabotage their finances and end up with an overwhelming debt.

The truth is, it’s never too early to start saving money. That way you can count on a bigger nest egg when you decide to retire. Keep in mind that this is a time when your income drops, but the costs of living don’t. Most experts advise people to save between 10 and 30 percent of their income. You can also start with the smaller amount and increase it gradually.

Starting an emergency fund is also something everyone should consider. Life can be unpredictable and many unpleasant surprises wait around the corner. Spend what is left after saving, not the other way around. Take the long view and keep in mind than all it takes is a determination to get a hold of your finances and your life. 

Future prospects

A starting point of a struggle to improve your financial health is to access your budget and establish a realistic plan. Make wise spending choices and satisfy your needs before any wants. Making an impression on someone and competing with colleagues when it comes to expensive cars isn’t sound financial decision-making.

Tidy up your finances instead, and focus on the future. Even small lifestyle changes can make a big impact on your monthly expenditures. So, set some money aside, eliminate your debt and you are on your way to live a stress-free for the rest of your life.

Manage your Money to Improve your Lifestyle

To make your living standard higher and to fulfill all your desires and needs the first thing you require to do is to manage your finance properly. Now money is something that should be used in a proper manner if you wish to improve your lifestyle. The first thing you need to do list your house and business expenses. 

By following this procedure you can save some money by eradicating the dissipate desires. It is essential for an individual to understand the concept of credit toil and mortgages; this will help the person to stay away from debts and other legal problems. If you wish to know more about economics, than there are several websites that provide complete information on budget planning.

Now the user should be very careful while providing personal information to these online firms. Here for planning or managing your budget you need to provide the account details. Therefore before relying on any of these budget sites it is necessary to do some homework and look out for an accurate one, as there are chances of getting cheated. Now the links which are genuine will charge some amount for the services provided, once the payment is done, software will be provided to the user. 

This software will allow the user to manage his/her personal funds, credit cards and bank accounts. If an individual prefers using a free site than he/she will get limited information plus the user will not get wide-ranging support and help. Users of the budget calculators and planners can have a regular check on their expenditures and savings. They can observe all their transactions this will give them a clear picture of how and where the money is being used. 

Once you are clear about the money saving concept, you can live a good and a high profiled lifestyle. Now if you are running a business the basic things that are be taken for consideration are set up a book to manage your credit stipulations and maintain the bank account to record of all financial transactions. By using online budget software you can easily manage all your financial transactions without assistance.

Now if you want to have a good control on your hard earnings apart from the above mentioned remedies, you must also try to eradicate few unusual activities. This may spoil your health and you can disturb your budget by spending more on medical treatment. If you are not concerned about your health then you can waste all your money on medicines and treatment. 

There are many ways to come out of this trouble like you can look out for a good health insurance plan and invest a handful of your income on any good and liable insurance scheme. This will protect you and your family from unexpected trouble. 

To stop misuse of money you can give up some unusual habits like drinking or smoking.The price of cigarettes has risen dramatically over the past few years. Government taxes on cigarettes are exorbitant. If you total how much you would spend on cigarettes per week, you would then see how much your smoking vice is costing you per year. For smokers, insurance policies are also more expensive. A good idea would be to replace regular cigarettes with electronic cigarettes which cost less and also doesn't contain toxins and harmful chemicals, the major cause of lung cancer.

7 Rules to Better Manage Your Money

 Every game has rules; managing and saving money are no different. Rules are a good thing; they set boundaries and keep people out of trouble, provided the rules are followed. By adding the rules that follow in this article, you can bet that your financial situation will improve. Here are 7 rules to to manage your money more wisely.

1. Needs vs. Wants 

If we all limited ourselves to our true needs, most of our money problems would disappear. After all, we don't really need much: food, water, shelter, and some company. At the same time, there are a variety of ways to satisfy those needs. For example, we can choose to eat beans every night or we can have a steak. There's also a difference between a tent and a $5 million home. 

Most material things in this world are entirely optional, and most of us have limited resources. Make sure you're not buying more than you need.

2. Don't spend new money 

New money is a raise or a financial windfall. You were already surviving without that money so don't expand your lifestyle to accommodate your new income. In general, we are not miserable because we don't have a new car or a bigger house; we are miserable because we can't pay our bills on time. Invest all the increases in your income and someday you can buy all the stuff you want. 

3. There is always an opportunity cost. 

Every decision has a cost, even if it's just the loss of other options. Buying a new car means the money for the car payments can't be used for something else. Going to college can cost four years of income. Always look at what you're giving up and decide if it's worth it. 

4. It's all about supply and demand. 

Consider that our income is largely determined by supply and demand. A brain surgeon makes a lot of money because when her skills are needed, the demand is extremely high. There are also relatively few people with her skill set. If you're easy to replace, your income is probably not as great as you would like. Always look for ways to make yourself irreplaceable. 

5. Understand risk. 

T-bills don't pay very well because the risk is minimal, perhaps next to zero. Stocks, on the other hand, pay much better on the average. However, stocks are more risky, too. Always consider the risk to your money and compare that with the expected return. Ask yourself, "Is the return I'm likely to get worth the risk?"

6. Understand the time value of money. 

Would you receive $100 today or $100 in 5 years? It is far better to receive $100 today. You could invest it or save it and start earning interest. Be sure to consider the time horizon for your investments. Here is some more information on the time value of money. The math can get complicated, but don't give up! 

7. Compound interest is an amazing thing. 

If you invested a single penny and were able to double it every day, in a month you would have over $10 million! The key is to leave your investments alone; don't take the money out and spend it. You'll be surprised just how quickly it can grow if you can just leave it alone. 

Anyone that keeps these 7 rules in mind will be handsomely rewarded in the future. If you're not already following all the rules, pick one and start today. Add a new rule each month until you're fully up to speed. Your bank account will thank you.

Melissa Wood contributes as an editor at RateSupermarket.ca. Obsessed with finding small ways to save money every day, she enjoys sharing her frugal lifestyle to the MoneyWise Blog. Read more about Melissa on her Google+ page.

6 Ways You and Your Spouse Can Manage Your Finances Together

Money is one of the leading causes of conflict in marriages today. This touchy subject often stays on the sidelines till after a couple has said "I do," only to rear its ugly head later. Managing your money as a team can do wonders for both your financial and marital health. 

Set Specific Goals Together

Many marriages have both a spender and a saver. If you work together to come up with achievable financial goals, your differences can balance each other out. It's important for both partners to share the same financial goals in order for your family to reach them together. Identify all your goals, large and small. This may range from saving for a house to maintaining a grocery budget large enough to accommodate organic produce. 

Create a Roadmap for Your Finances

Once you've set your goals, you need to decide exactly how you will reach them. Create a time-table for large goals, such as saving for a car or home. Determine how much you need each week or month to get to your goals in time. The clearer you are about where you're going, the easier it will be to decide whether you're on track. 

Choose a Money Management Plan

Sit down together and decide how you will manage your money. You can keep your money in a joint account or two separate ones. If you use separate accounts, you may want to keep a joint one as well for pooling money used on bills.

It's also a good idea to decide how you will track your money from month to month. There are many apps and programs to help you with this. A more traditional method is to take cash out for each type of expense and keep it in an envelope so your spending can't spill over from one area to the next. This keeps you from accidentally spending grocery funds on entertainment and makes it easier to visualize your situation. 

Set Rules for Spending

As a couple, you need to decide how much discretionary money each person gets. Do you have a set allowance for fun money each week, or are you able to spend freely as long as purchases are under a certain cap? Be very clear about how you feel on this issue, as a saver may prefer discussing any purchase over $20 while a spender would probably set the cap closer to $100. 

Collaborate on Savings Strategies

Saving is important for healthy finances in any situation. Talk to your spouse about the level of risk that you're comfortable with. There are lots of ways to invest and save ranging from gold bullion from the U S Money Reserve to stock and bonds. A diverse portfolio is usually the best option for balanced financial health. 

Communicate Clearly and Often

Set a meeting time each week or month for you and your spouse to sit down and go over the finances. Communicating often is your best defense against misunderstandings and conflicts down the road.

Using these strategies, you and your spouse can manage your finances wisely with both parties having a fair and equal say in your decisions. 

Manage Your Finances Like a Small Business

You may not think personal finances have much in common with finances of a small business, but with a little creativity you can manage your money as if you were your own company. Here are some tips to keep in mind when working on your finances.

Hang On to Important Documents

As a homeowner, you probably won't have to deal with Cash Flow or Profit and Loss Statements like a business would. However, there are several forms and documents you definitely need to keep track of. This practice can help during tax season, when you might need to reference old statements for your files. Managing your finances will be a breeze if you store all your receipts, loan statements, and credit records in a safe, well-organized place.

Come Up With a System

Of course, knowing where your documents are is only half the battle. Once you've collected your files, you need to figure out a routine for keeping them organized and properly utilizing them in your financial management. It also helps to regularly balance your checkbook or keep track of your expenses in spreadsheets. Some business owners do a daily rundown of their gains and losses to maintain their financial flow. If you're struggling to figure things out, there's tons of free accounting advice online that can help you.

Focus On Profit

It might surprise you to think of a homeowner turning a profit, but this is basically what any individual with an income, expenses, and assets ends up doing. Consider the things you spend your money on every week--groceries, rent, energy bills, and probably some fun stuff, too. You can think of the dollars you don't spend on necessities as your profit and store them away in a savings account. Even non-monetary gains, like clothing or entertainment products, could be considered profits. One of your main goals should be to maximize these earnings so you can reap the most benefits from your hard work.

Plan Ahead

You won't get very far if you don't have a head for the future. Once you have all your files and systems ready, you need to consider what you want to do with your finances in the long run. If you want to make a large investment, like buying a house or a car, you will need to plan to save money and look for the best payment plan available. Financial programs can help keep track of your projects, or you can write a simple to-do list of tasks such as budgeting for food or allocating money for retirement. Just like a business, you should figure out your long-term goals and work on a good strategy to achieve them efficiently. 

Controlling your finances as if you were running a business is a great way to become more stable and more independent. Despite the differences between a small business and a homeowner, there are plenty of shared practices that can help any individual get a better grasp on their money.