Managing finances as a senior can be challenging, but one simple trick can make budgeting easier: the 50/30/20 rule. This method divides your monthly income into three categories: 50 percent for needs, 30 percent for wants, and 20 percent for savings and debt repayment.
Needs include essentials like housing, utilities, groceries, and healthcare. Wants cover non-essential expenses such as dining out, entertainment, and hobbies. The remaining 20 percent goes towards savings and paying off any outstanding debts.
By adhering to this rule, seniors can ensure they cover their essential expenses while still enjoying their retirement. It also encourages saving, providing a financial cushion for unexpected costs. Review and adjust your spending monthly to stay on track and make informed decisions. This straightforward budgeting method can bring financial peace of mind, allowing you to focus on enjoying your golden years.
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