By For retirees looking to maximize their savings, financial flexibility is key to enjoying a worry-free, comfortable life. While adapting to a fixed income may seem challenging, there are many simple yet effective ways to stretch every dollar further. From taking advantage of senior discounts and loyalty rewards to rethinking daily spending or monitoring overlooked financial changes like the increase of stamps, small changes can yield big savings over time.
For instance, exploring cost-saving alternatives in groceries and utilities or refinancing certain expenses can free up funds for travel, hobbies and experiences. Additionally, making use of community resources, like local senior centers that offer free or low-cost programs and services, can also lead to significant savings without sacrificing enjoyment. Through thoughtful budgeting and smart financial adjustments, retirees can ensure that they have the financial security to enjoy this special stage of life to its fullest. Keep scrolling for sound financial advise to help through multiple stages of retired life.
A version of this story appeared in the print edition of Woman’s World
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Recover from holiday spending with these tips
To shift gears from shopping to saving after the holidays, finance maven Andrea Woroch (AndreaWoroch.com) recommends her tried-and-true tactic: Go on a “no-spend diet.” “This means temporarily not buying anything beyond necessities,” she explains. “The goal is to change recent spending habits and free up cash to pay off debts faster, helping you get back on track financially.” Just make a list of all the staples you need to buy, and curb everything else—like lattes and fast food, she suggests. “Then commit to it for a specific amount of time, such as one week, or do it just one day a week for a month.” You’ll be surprised how quickly it boosts your budget. -
Secure your financial passwords with these easy steps
So many of us worry as more and more aspects of our lives migrate online. Though your chances of getting hacked are slim, peace of mind is priceless. So it makes perfect sense that you want to ensure your passwords are strong enough to thwart would-be thieves. Fortunately, these simple tips from cybersecurity expert Rachel Tobac, CEO of Social Proof Security (SocialProofSecurity.com), make it easy to create hack-proof passwords.A common mistake we make when choosing a password is using information about ourselves, says Tobac. “This may include our name, pet name or address.” Though this is understandable since they’re easier to remember, hackers can often find these details in public databases or on social media. And once they have them, they use software programs that go through every possible iteration in lightning speed—such as Janie321Main and RoverSmith—until they find the one that unlocks your account.
Luckily, there’s a far more secure option. “Instead of creating passwords yourself, use a password manager, a program that generates long, random, unique passwords, then stores them for you so you don’t have to memorize them.” These passwords typically include a combination of at least 16 upper-and lowercase letters, numbers and symbols, a mix that provides the most security. Bonus: You’ll no longer have to remember your account logins since password managers safely keep them in an encrypted file, which means only you can read them. Pick a free password manager to generate and store passwords, like Bitwarden (Bitwarden.com). Or compare paid versions—which cost about 99 cents per month—that offer more options at SafetyDetectives.com/best-password-managers.
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Save money on gifts with easy financial tricks
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Rest assured, you’re in good company! Forty-five percent of us have missed a credit card payment at least once in the past five years. But the amount of time that passes between realizing this and sending your payment can lead to different results. If you pay within 30 days of the due date, for example, the credit card company considers it a “late payment,” and they’ll charge a late fee, typically $25 to $40. You might also incur penalties, such as an increased interest rate and lower credit limit.
But if your check or online bank transfer arrives 30 days or more after the due date, the credit card company considers it a “missed payment.” In addition to a late fee and penalties, the credit card company reports this to the three major credit bureaus—Equifax, Experian and TransUnion—causing your credit score to drop by 20 to 100 points. What’s more, this negative mark remains on your credit report for seven years.
Thankfully, if you have a solid history of on-time payments, there’s a simple strategy to erase this from your credit report: Just write a “goodwill letter.” “It’s a request to forgive a missed payment and rescind the report,” says Mike Sullivan, a personal finance consultant with the nonprofit credit counseling agency Take Charge America. If they agree to it, credit bureaus will restore your credit report to the way it was before your missed payment. With Sullivan’s tips, writing a persuasive goodwill letter is easy!
Before you begin writing, call your credit card company’s customer service department, encourages Sullivan. Ask the representative what will make your goodwill letter more effective, such as which details to include—like why your bill was late—and what documentation to provide, such as proof backing up the reason you missed the due date. Then request the name of a person or department who handles goodwill requests, along with their mailing address, so your letter reaches the right place quickly. Also smart: Ask when you’re likely to hear from the credit card company about their decision. This way, you can follow up with another call to check your status.
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Forgot to pay your credit card bill? Write a persuasive letter
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Picture this: You’re in a store or browsing online for a certain item, when another product catches your eye. It’s not on your shopping list and you don’t need it, but it would look fantastic in your kitchen. Many shoppers would put it in their cart right away. But people using the “slow shopping” strategy wait before deciding whether to buy it. That’s because this method lets you pause and consider a purchase carefully, says Julie Guntrip, Head of Financial Wellness at Jenius Bank (JeniusBank.com).
“This extra time could be a few minutes, 24 hours or even longer, depending on the situation,” she says. “It’ll help you evaluate why you want something. Odds are, when you revisit it with fresh eyes, you’ll be less likely to buy it.”
While retailers work hard to prevent you from having too much time to think—it’s why they use a variety of strategies to prompt quick decisions, such as low-inventory alert and limited-time sales—you can thwart these high-pressure tactics and use slow shopping to keep more cash in your wallet. Just keep reading to learn how!
The best way to start slow shopping is to create a budget and see where your money is going every month. You can do this easily with free apps like Mint (Mint.Intuit.com) and NerdWallet (NerdWallet.com) that link securely to your bank and credit card accounts, so you can see all your expenses in one convenient place. “Look closely at your buying patterns,” advises Guntrip. “You may be surprised by how much you spend in certain categories.” Simply being aware of your habits will help you pause and consider whether you really would like to buy an item.When you want a product or service that’s not on your shopping list, create an easy way to delay your decision. One option: Set an alarm for 24 to 48 hours, suggests Guntrip. Or give yourself a place to temporarily hold products while you consider them, like an online wish list (WishList.com). A study from Texas Tech University reveals that shoppers who delayed buying online products by adding them to a wish list were 42 percent less likely to purchase them.
The researchers found that when you come across a new product, you first focus on the flashy, fun aspects of it. But when you put it back down and come back to it, you’ve cooled off, allowing you to focus on whether it fits your everyday needs. If it doesn’t, you often decide not to get it, without feeling deprived.
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What is slow shopping? Save on big purchases and set aside ‘treat money’
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More than 37 million of us are assisting older loved ones in some way, such as handling their finances, so they can enjoy their golden years. But when it comes to helping manage their money, there are important steps to take. The first, of course, is to sit down and talk with your mom and dad about it. “Invite a trusted third party to join you who has your parents’ best interests at heart and isn’t a beneficiary of their assets,” says Cynthia Healy, a Certified Public Accountant, Certified Fraud Examiner and Certified Senior Advisor (GoGrey.com). “This could be a close friend or longtime professional who’s worked with them over the years, like an accountant or minister. Family discussions can be emotional, which is why having a third person in the discussion helps keep the topic on track.” As a result, you’ll have a smoother conversation, ensuring everyone is on the same page.It’s wise to make your role official by getting the authority to access your parents’ accounts, says Healy. You can do this by setting up a “durable power of attorney” (DPOA) with an estate planning lawyer. Find one by searching for “estate planning” at Martindale.com. You’ll get a list of attorneys in your area along with reviews. The cost of a typical DPOA is about $100 to $600. This gives you the right to make decisions, like selling a home for them if they don’t want to deal with the hassle, and take actions (like writing checks) on your parents’ behalf. Unlike a “power of attorney,” which ends if your parents become unable to make decisions for themselves, a DPOA allows you to continue acting in your parents’ best interests for the long term, regardless of their health status. You can customize this kind of legal authority for your particular circumstances. “It can be very specific, allowing the DPOA to manage bank accounts, insurance issues, pension issues and more,” she says.
