It always pays to know more ways and strategies to save money. After all, as mentioned in our previous post, 3 Financial Planning Tips Great for Your Health, a saving (and earning) mindset is needed, especially since most baby boomers haven’t saved a single dollar for their retirement at all!
As such, we’d like to share more financial strategies and money-saving (and generating) tips for you to learn and share. Knowledge on these matters is essential in preparing for the golden years – application and integration of these tips or hacks will allow you secure your desired future!
As a follow-up from our previous article, we’d like to remind you and other readers of the importance and relationship of health literacy to one’s savings. Health literacy, if not improved upon, will not only lead to increased chances of being diagnosed with a disease or health disorders. It’ll also be detrimental to one’s financial assets.
According to the American Medical Association, individuals with poor health literacy skills are more likely to:
Also, people with inadequate health literacy skills tend to undergo medical procedures that aren’t even necessary – which, of course, can’t be good for their wallet! As such, improving on being able to interpret and appropriately take action on health instructions is synonymous to securing money for your future.
There is no set plan to commit to when preparing for the future. As such, investing time to learn about different retirement solutions and selecting which will work best for your circumstances or preference is the way to go!
Aside from our previous suggestions, consider a mix of tips that can be sourced online. Better yet, look up information from other boomers or retirement planners and see how they made things work out. Here are a few examples:
Financial independence is possible by following this formula. As defined by Investopedia as a rule to determine the amount of money an individual can withdraw from a retirement account in a year, this strategy can effectively grant a person a steady stream of cash for the golden years. In a way, this approach will help boomers give themselves an idea (and eventually commit into) on how much they would need for their future.
Making the most out of what you have and maximizing your resources are great ways to stretch your budget. As revealed by Distilled Dollar blogger Matt and his fiancé, their choice of living resulted in massive savings. Living within your means and not spending on trends or fads will pay off: Matt was able to save $50,000 last year, and plans to be financially independent when he turns 35!
Another set of retirement solutions that will be beneficial in addressing financial issues during the twilight years are insurance policies.
As mentioned before, Long Term Care Insurance (LTCI) is an essential policy to have. With long term care expected among for individuals 65 years and older, having the right set of coverage to deal with care costs will definitely be much appreciated.
To further highlight the importance of an LTCI, let’s look at some numbers (monthly, national median scale):
The high cost of care, as seen and without the right coverage, can put a dent in any financial plan.
Another option to consider when asking how to save for retirement is a Medicare Supplemental Insurance Plan. By addressing out-of-pocket costs for medical services that individuals deal with, this policy can definitely help boomers secure their funds. Also, with ten standardized plans to choose from, applicants are given the convenience and peace of mind of finding and selecting a policy that will best fit their needs.
We hope that these tips will help you save money. Any thoughts or suggestions – please leave a comment below!