Please welcome Ethel, from Legacy Based Living, who has written this guest post on how to financially thrive during a recession.
As you enter your twilight years, you may find your finances to be a bit less stable than they used to be. This can be especially true for retirees and seniors with disabilities. Taking preventative precautions and accepting help when appropriate will help you maintain your fiscal health for years to come. Here are some tips from Bitter to Richer to help you do just that.
Assessing Your Fiscal Health
When you notice your finances spiraling, take a good look at where your money is going. Are there luxuries or impulsive purchases you’re used to that you can simply no longer afford? Whether due to being on a fixed income or experiencing a career setback, adjustments and sacrifices must be made when your cash flow is diminished. Assess what you can stand to lose, and cut the frivolous expenses out of your life.
Everyone with bills needs a budget. Take the time to list all your recurring expenses and compare them to your monthly income. Ideally, this will show you precisely how much money you can save or spend beyond necessities, but it may carry the alternate result of showing you how much you need to scale your expenses back if you want to remain financially independent.
Downsizing Your Home and Business
If your income cannot support your current housing costs, it may be time to sell your home. The value of the home will most likely more than cover whatever is left on the mortgage, giving you a sizable nest egg to start over in a more scaled-down living situation. Moving in with a willing relative, renting an apartment, or moving to an assisted living facility are all ways to retain a certain amount of independence while also providing you some monetary runway as you get your finances under control.
If you own a business but are nevertheless financially insolvent, it may be time to move on and sell the company. There’s no shame in passing a business along or shutting it down after it’s served its purpose. Before selling, obtain a professional business valuation. This will break down the value of the property and all business assets, making sure you get the maximum value when parting with your venture.
Accepting Help When It’s Needed
Nobody said you need to get your finances under control on your own. Friends and family will most likely help you if you ask for it, but you’ll need to set aside some pride and open up to them. A loved one with good business sense or even just a responsible and successful colleague can be your support system to get you back on track and help you find responsible strategies to recalibrate your money situation.
There are also several government assistance programs, senior citizen advocacy groups, and resource programs that may be able to benefit you. Grants are available to help you consolidate debts, provide you with rental assistance, or establish yourself in a retirement community. There should be no stigma attached to utilizing these services, as they’re in place for your benefit.
Additionally, if you have to make repairs to your home or business, those could be tax deductible – and you can also shop around for the best deal. For instance, if your window air conditioner requires some repairs, here are local options that allow you to request a quote in advance.
Facing fiscal hardship late in life can be frustrating and discouraging. A loss of control can make you feel incapable or like a failure. Making responsible first steps, breaking frivolous habits, and accepting help where it’s offered are the best ways to keep your money under control and thrive in your later years.
Bitter to Richer is here to help you better yourself and make the most out of life. If you have any questions or stories you’d like to share, please reach out today!
