How to manage money? Important tips for senior citizen:

How to manage money? Important tips for senior citizen

It is essential that our senior citizens incorporate a concept of savings, in order to be able to manage unforeseen expenses on time. Once the summer season is over, and next to it is the holidays, it is advisable to organize the expenses of the next months of the year to avoid financial unbalances. There arises a need for planning out about managing money in order to keep a track of it. Once the expenses are planned and you know what the monthly pension is disbursing, you can avoid financial disruptions and inconveniences during the next months and reach the previously determined objectives, as well as the deadlines, costs, and resources necessary for this may be possible.

Forgetting a schedule planned, the monthly budget is also an exercise that lets you know how much money is received and spent in a month. This will ensure that there is money available to cover any eventuality.

Here are some tips that will help the senior citizen to manage their money expenses:

  • In the first instance, it is necessary to order monthly expenses such as housing, food, basic services, savings, insurance, etc. To avoid the mess, it is ideal to do this practice the first days of each month.
  • To facilitate the realization of the budget, you must determine what is the total monthly income, that is, the pension plus any other type of income that is perceived, such as leases, among others.
  • It is recommended not to borrow more than one-third of the monthly income, in terms of payment of fees. The total amount of the debts must not add more than eight times the pension received.
  • If during this year you opt for a loan, before going to one of them it is important to analyze what amount will be allocated, for how long and to learn about the conditions.
  • One must note down/ or hire a personal manager just for keeping a track of their expenses which helps them to cover money evenly and can also reduce the useless expenditures which are not necessary at this age and time.

On the other hand, when the person reaches the third age, their income levels fall significantly and their financial management culture sometimes remains unchanged. For this reason, it is essential to propose a change in their way of managing their income, in order to improve their quality of life and their self-esteem.