Raleigh.- After age 60, thousands of Hispanics in the United States begin the path to retirement, either of their own free will or because they have completed their work cycle.
However, due to inflation and other factors in the world market, the fixed amount that a retired person receives every year does not meet their needs. How to adjust that budget and reach it?
Gilberto Cabrera, external relations consultant and AARP spokesman, gave 15 guidelines for setting and sticking to a budget for Latino retirees on a fixed income and for the Hispanic population in general.
1. Calculate your income: Track and project all sources of your money coming in from this year. This includes Social Security payments, pension payments, any employment income and income from investments.
2. Calculate Your Expenses: The best way to do this and not die trying is to review your bank statement and break down your expenses such as housing, utilities, groceries, medical expenses, and discretionary expenses like eating out and traveling, etc. to classify.
3. Use Budget Control Tools: AARP’s Money Map is a great budgeting tool; You do not need to be a member to use it. There’s also AgeWell Planner, created by the National Council on Aging.
4. Use the Profit Verification ToolBenefits: Regardless of your financial situation, it’s a good idea for seniors to learn about all the benefits they may be entitled to. the best way Benefits Checkup,
The tool can be used to connect you with local programs that help financially for seniors who have difficulty paying real estate taxes.
5. Set a spending limit and stick to it!!: Since most retirees are on a fixed income, it’s important to set your spending limits.
After calculating all necessary expenses, it is recommended that you add up to 20% for incidental expenses, savings and paying off debts. He generally recommends a budget that is 50% for essentials, 30% for wants, and 20% for contingencies.
6. Limit Credit Card Debt: Cabrera suggests avoiding small purchases with a credit card as far as possible and making sure you have the funds to make payments at the end of the month.
7. Bill on Auto PayTo avoid missing bills and damaging your credit, put all your recurring bills on automatic pay. It is recommended to set up automatic payments at least five days before the bill due date.
8. Block Your CreditIt’s a good idea to block (or freeze) your credit with each of the three major credit bureaus: Equifax, Experian, and TransUnion, especially in the face of financial scams targeting seniors. This will not affect your credit score.
9. Planning for Unexpected Medical Expenses: They say that having enough emergency funds to cover the costs of medical care is essential.
10. Check All Subscription Services: Review your bank statement to see which subscription services you pay for each month, and then determine which ones you actually use and which ones you can skip.
Be with only those who benefit you.
11. Check All Insurance Providers: The National Council on Aging recommends that older consumers review their insurance providers annually.
12. Review Your Overall Food Budget: A few extra meal deliveries a month can nearly double your food budget.
13. Save Your Social Security Increase: Most retirees will receive an 8.7% cost-of-living increase in 2023. Instead of spending it, set it aside in your savings every month.
14. Take Advantage of Discount Programs for Senior Citizens: Many supermarket chains offer discounts.
15. Find Ways to Cut DownWhen budgeting for 2023, the best thing to do first is to review your previous budget and determine what you can cut immediately.
Some of those quirks can be easily suppressed, he said.
“I think we all need the discipline of trying to save and set a budget. Sometimes we’re afraid to sit down and analyze the numbers and end up with expenses that aren’t necessary and are more like a fad”, says Cabrera.
“Budgeting is not difficult or impossible, the most difficult thing is sticking to it, but it is the challenge if we are looking for effective savings,” he said.