Financial Saving Tips for Seniors

Posted on October 23rd, 2008 by Iwaller

During these difficult and challenging economic times, seniors and retirees have more of a challenge, especially those living on fixed incomes. We see our savings, IRAs and money market accounts slashed 30% to 40%, and for some, even more.

Now is not the time to panic, nor it is a time to be fearful. It is a time to take a deep breath, be calm and take account of our individual financial situations and to seek out opportunities that will keep more of our money in our own pockets. As many seniors will agree, now is not the time to be too proud to consider all beneficial options.

Be prudent, save as much money as possible, without altering the basic necessities of life. Saving money means you’ll have more to invest - or to spend on things you enjoy.

Below are some strategies and cost saving ideas which should be incorporated into our financial future.

Start a household budget for daily living and stick to it. In these economic times, every penny counts.

Contact your credit card company and request they cut your interest rates in half and request they drop your annual fee. You may not get everything you request, but being firm will almost always result in reduced interest rates and possible the suspension of your annual fee.
If possible, pay or or pay down your credit card balances. In the end this action will put more money in your pocket and eliminate exorbitant interest payments which save you in the long run.
Seniors may cut their homeowners and auto insurance premiums by 25% - 30% simply by increasing your deductibles from $100, $250, or $500 to $1,000. Many insurance companies provide better rates for drivers over 50. The Hartford Insurance provided through AARP is one such company.
Seniors can save more money, 1-% - 15%, by combining their auto and homeowner insurance with the same insurance company
Seniors who may have teenage drivers should designate the teenager as the principal driver of the older automobile, and only as an occasional driver of the newer vehicle, which will also save money on your automobile insurance premium.
As seniors grow older, we should reevaluate our life insurance needs. What may have been an appropriate amount when we had children at home, may not be needed today. Seniors can usually save hundreds of dollars by adjusting and reducing their life insurance needs. Check out your life insurance needs with this life insurance needs calculator.
Consider refinancing your home. Many seniors and retirees can reduce their mortgage payments significantly if they obtain a lower mortgage interest rate. To help seniors decide try using this great calculator at Bankrate.com. You can calculate mortgages, credit card payments, auto, retirement, taxes and a host of other financial needs.
When possible, always ask your doctor for generic medications along with free samples. This can be a great prescription savings when it is possible to substitute generic for name brand
Many prescription drugs cost the same (or nearly the same) regardless of the dosage. Research shows that for many medications, pill-splitting is entirely safe when done correctly. As a result, you can often save money by asking your doctor to write your prescription for twice the dose you need, then cutting each pill in half.
Seniors and retirees can save up to 30% by adding additional insulation and weather stripping, and sealing gaps around windows and doors, chimneys, furnace and gas water heater flues, water pipes, dryer and bathroom vents, etc.
Seniors can also save up to 20% by lowering your thermostat 10 degrees during the day if no one is home and 5 degrees at night.
Keep your tires properly inflated. Check tire pressures monthly (don’t forget the spare). If they are underinflated by 5 pounds, your gas mileage will be reduced 10%. One in 4 cars has at least one tire that is underinflated by 8 pounds or more. Low tire pressure is a major cause of accidents.
Check your air filter every time you have the oil changed. A dirty filter cuts air flow to your engine; that cuts your mileage. Most cars should have their air filters changed every 10,000 to 15,000 miles - more often if you drive in dusty conditions such as new housing developments and other construction.
Despite what the oil companies say, most automobiles do not need premium grade gasoline. Do not use it unless your owner’s manual specifically calls for it.
After you fill up your gas tank, be sure to tighten up your gas cap when you put it back on. If it does not fit snugly, your gas can evaporate easily.
Check out your automobile trunk and remove any unnecessary and heavy items because the additional weight means your will be burning more gas and your engine will have to work harder.
Be sure to do routine maintenance on your automobile at the scheduled and recommended intervals from your car’s manual. Dirty spark plugs can cut your mileage dramatically.
Combine your daily errands and appointments into one trip. Plan your grocery shopping; do not drive to the grocery every day or so. Better yet, go with a family member, a neighbor or a friend. Almost every retail item goes on sale at one time or another during the year. Plan your larger shopping needs around these times to get the best deals for the least amount of money. Find out when typical monthly sales for which items at The Frugal Shopper.
Take care of yourself. Stay on top of your checkups, get your flu shots every year, stay away from sick grandbabies, etc. Now is the time to eat healthy and exercise to keep your body and mind in good condition.
STOP giving handouts to your children, grandchildren, neighbors and moochers. We cannot financially save everyone and we need to be prudent with our finances and not let others take advantage just because we are seniors and retirees.

There is something to be said for using common sense during times of crisis, and in life generally speaking. We have a lot of life left, we have a lot of living to do, we will likely live beyond the years of our parents and grandparents. We need to make our resources and finances last.

With a few adjustments, you will be surprised how much money you can save with just a little investment of time.

Please read home energy saving tips for great energy saving ideas.

Filed under: Finances, Senior Finances