Needless to say, if you don’t have sufficient savings by the time you become a senior, you’ll either need to continue working, or you’ll need a live a sparse lifestyle. The key to freedom as a senior is having the savings on hand to make that happen.
Opt for Used Vehicles
Regardless of how much money you have, don’t go for the newest, flashiest cars. Instead, opt for a used vehicle. The average new vehicle costs $37,000 whereas the average used vehicle costs $17,000. The difference could be going into your savings instead of toward the new car that loses value the second you drive it off of the car lot.
This is good advice for both younger folk and those who are already seniors. Again, instead of going for the newest devices, try to get an older model instead since they’re often marked down a great deal. And if you’re a senior, ask to see if there is a special senior deal.
Avoid Overdraft Fees
Banks offer overdraft protection, which is typically $35. It might sound like a great deal in the event you might need it, but the fee is pure profit for the bank. The reality is that instead of protecting you, it actually harms you.
That’s because when you make a purchase, the bank will allow the purchase to go through—which results in more money that you will owe that you don’t necessarily have to spend.
Instead, it is better to walk away from the register.
Credit Card Debt
If you owe credit card debt, your number one goal should be to rid yourself of it completely and keep it that way. A huge percentage of seniors carry credit card debt and it just eats at you. The average interest rate is 17%, and that percentage could be going toward your savings account instead.
This is something to keep in mind before and after you retire. Simply put, try to keep yourself busy. Sign up for something that can help you maintain some level of activity. This can include volunteering, or finding work that you’re passionate about.
Pursue those hobbies that you were always interested in, but never had time to actually do. Otherwise, you’re going to get bored—but retirement can offer you a world of freedom if you take the time to plan carefully.
Sometimes the best advice can only come from someone who has actually experienced–and succeeded, using the same method. That’s the case for these 6 biggest money tips that are geared towards helping you obtain financial freedom by the time you become a senior.
Here are 6 big senior money tips to help you ensure financial freedom while you’re still young: