You may be retired, but being adept at money management is always important – regardless of your age.
Being wise about investments and expenditures will ensure you’re able to maintain a comfortable standard of living. Plus, it also puts future goals in easier reach as well.
Unfortunately, there are several money mistakes that many seniors make without a thought. Here are a few that you should make sure to avoid.
1. Not Planning for Long-Term Medical Care
Even if you’re in great health today, that may not be the case a few months down the road. Not only do seniors have to plan for general expenditures, but long-term medical expenses are also important to consider.
You should make sure you have a significant sum set aside for any medical expenses that arise in your retirement. Else, you may end up having to dip into home equity or rely on refinancing to cover your medical costs.
2. Underestimating Monthly Expenses
Not accounting for inflation is another major money mistake we see seniors often making. Costs are constantly rising – that means increased healthcare costs and increases in housing costs as well. Plus, even general goods often experience price hikes, too.
This can make it difficult to anticipate how far your money will go. It also means we often overestimate how far we can stretch our retirement funds.
3. Falling Victim to Fraud
This is certainly a topic we’ve covered before, because it’s an important one. According to a recent report, seniors lose literally billions of dollars a year to fraud and scams.
Fraudsters and con artists often target seniors, which is why there are so many victims over the age of 65. From lottery schemes to phishing websites, and requests for wire transfers, we’ve seen it all. Therefore, it’s incredibly important to be diligent about protecting ourselves from deceit.
Do you have any sound money management tips to share? Perhaps you’re aware of additional potential mistakes that others could be making. Scroll down and let us know in the comments.