Inflation has made it considerably harder to afford our normal goods. Especially for retirees, on fixed incomes, the cost of living is outweighing our savings. So, when prices get too high and seniors can’t afford the things they’re use too, what then? Luckily, CNBC’s Michelle Fox helps retirees dance around inflation by offering some straightforward financial reporting.
Learning the Steps
In a way, retirement income and inflation represent a passionate tango. They sway around one another, never giving up control while vying for financial dominance. It’s a fun metaphor, which represents a real-world problem for seniors. How do I afford my lifestyle when prices are sky high?
The first step in this dance is knowing where your finances are hit the most. For example, Fox points out that retirees with no 9-to-5 commute aren’t as affected by gas prices. However, they still must deal with rent and food costs. Being financially flexible, adjusting for when one cost is greater than another, is a good strategy to managing your money.
The next moves in the financial foxtrot are easy to follow. Adjust your budget as needed, diversify your investment portfolio, and delay Social Security if you can. The first two steps are simple, but the third is only if you can do so easily and with out financially hurting yourself.
Adjusting your budget lets you spend within a safe range while maintaining your savings. Diversifying your portfolio protects parts of your investments, even if some are put at risk. Finally, delaying your Social Security increases monthly benefits, giving retirees more money to work and enjoy. Cha-cha-cha!
Embrace the Dance
With proper financial planning and knowledge, seniors can smoothly dance around inflation like Fred with Ginger. The Council for Retirement Security is dedicated to protecting the benefits of every senior, so retirement can be reality for everyone. Join their cause, protect your benefits, and take that ballroom dancing class you’ve been thinking about.
