Senior homeowners often worry about how to handle finances during their retirement. Mortgage rates change constantly and the flux in living costs is a vital contributory factor to stress and financial mismanagement. Without the safety blanket of a salary, savings may feel inadequate and seniors could look for ways to adapt to feel comfortable and secure. Here are 10 money saving tips for senior homeowners to combat potential burdens.
Refinance Your Mortgage
A monthly mortgage payment is not a fixed outgoing and is subject to change depending on economic factors. Until the terms are satisfied, this will have to be paid on time in full to avoid losing the rights to your home. Though it is often overwhelming, refinancing a mortgage opens the door to better rates in terms of interest and can even lower the monthly cost. The process is accessible to even the most technophobic of people, and there are plenty of intuitive tools online to help seniors find the most compatible rates in line with their budgets.
Utilize Your Land
Land is a viable asset in terms of bringing in extra money. If you have it, consider renting it out for functions and events, setting it up as a camping ground, or even building another property to rent out.
Change and Review Your Insurance Policies
Insurance policies are a necessity that everyone should take advantage of. They are protective measures to help in times of need and provide a security blanket in various circumstances. Typical categories include life insurance, home insurance, and mandatory driver’s insurance. Yet, home insurance for seniors is the easiest thing to change to find and access more appealing rates. You can browse options for home insurance quotes online. Make sure the home insurance quotes you are given cover everything that you require — you will need to read the small print.
Sub-Let an Annex
Take a look at your property and the potential it has to offer. Larger houses with annexes or spare rooms that lie unused are a great way to generate additional income. If you are up for the task of being a live-in style landlord, consider sub-letting areas of your home to reliable tenants. You will have to jump through some legal hoops, but the processes are all guided and there are so many expert advisors to help if you need it. It might even bring a breath of fresh air into your life too by creating a new connection with a social element.
Stay Organized with Bill Payments
When you miss a bill payment for a utility or similar, there is an additional late fee that is tacked onto what you already owe. Staying organized with these components may become more difficult in old age, but it is worth maintaining to avoid unnecessary penalties that could lead to financial distress.
Do Weekly Food Shops
Budgeting for meals in theory is straightforward, but in reality, so many external factors dictate the process and its chance of success. It doesn’t matter how much you plan for the month, food often goes to waste regardless. This is a major waste of essential money that could be better utilized. Weekly food shops may be the answer you never knew you needed. The advantages of buying your food week by week as opposed to bulk monthly purchases are listed below.
- A minimized risk of wasting food. Buy what you want for breakfast, lunch, and dinner and supplement with a range of snacks (healthy or not, it’s your choice). That way, at the end of the week you will have a better grasp on how to plan for the next one to come, and fewer items will go in the trash.
- It’s less to think about. Planning for seven days as opposed to thirty days is a much more manageable task. It means fewer items have to be purchased, more storage space in cupboards and the fridge, and less to organize generally.
- Weekly shopping means weekly sales in-store. Grocery stores often run promotions on a week-by-week basis, so you will be able to take advantage of the best deals as they appear in the shop instead of missing out if you only visit once a month.
- Less temptation to stray from the path! Monthly food shops can feel boring and repetitive and are a road to falling into boring habits that mean you are more likely to look for takeout and dining externally. Buying your food for the week means you have a clear plan, that is far easier to stick to and therefore decreases the desire to ignore what’s at home.
Use Senior Discount Schemes
So many stores have senior discount schemes. There is absolutely no shame in taking advantage of every single one. Get all the vouchers you are able to, accept all the special perks of your age, and use those discounts to decrease your expenses. It’s not only food stores that run this type of agenda, vouchers can be found everywhere including days out and attractions, public transport, and, gym facilities.
Invest in Insulation
Saving money on bills translates into fewer outgoings, which in turn makes your incomings stretch further. Anything that facilitates this should be welcomed with open arms, and adding insulation to your property while it comes with initial installment costs, yields positive results in terms of money in the longer term.
Try a Smart Thermostat
Along with this theme, try adding a smart thermostat to your property. This helps you to only heat the rooms that you use the most and allows your energy usage to adapt to a more predictable pattern. Smart meters and thermostats use analytics to assess what you use when peak times are and highlight areas where you can save.
Renovate to Prevent Accidental Injury
Though a hard truth to accept, elderly people are more at risk of becoming injured in the home. To mitigate this, consider a renovation tactic that addresses and pinpoints potential hazards. Slippery floors need to go, along with any other defunct or dilapidated feature that could pose a problem and cause an injury.
Senior homeowners can save money if they are savvy and stay afloat on market trends and their own changing needs. There are core areas to target, and these either generate additional money or decrease pre-existing costs.