Preparing financially is one of the most important parts of moving to a senior retirement community. Before you go and tour a new residence, you need to make sure you have reviewed your financial situation. Asking for help and assistance from your family members and/or Accountant is always a good idea when budgeting your finances.
1.Organize your finances
Organization is the key to success. Having a system to track your finances and budget is necessary. This way you can track how much you spend on a weekly or monthly basis and how much you can save.
Having organization planning apps such as “You Need A Budget” can be a great tool and a great resource to monitor all your expenses. However, being tech savvy can sometimes be a challenge. One of the easiest technology investments is a simple spreadsheet in excel. It is the easiest way to track your budget.
For those who prefer the old school method of using a pen and paper, investing in a good financial planner or organization diarie is a great idea. These planners and diaries have different columns that can be filled and used whenever needed.
2. Budget closely and track expenses
The most important foundation is to budget closely and make a note of everything money is being spent on even if it’s an unexpected expense. The key is to be realistic with your budget and plan it carefully.
Before the month starts, make a budget plan and write all the essentials that are needed by you and how much is spent on them. And then write any extra expenses that you may incur in the entire month. Once you have made a budget, now limit your expenses to see how much you can save in a month.
Monitoring your budget before moving into a retirement home is essential as a failure to do so can lead to unexpected expenses exceeding your set budget.
3. Rate changes
Always plan for rate changes. Always make sure to make a note of the rate changes that may happen over time. If you buy a toothbrush regularly for $7.99 and once found it on sale for $6.99, write that down in your savings and make a note of the rate changes that can happen with this product.
Make a list of items that can be expensive in the near future such as medical care and medications. Another important thing to look at is how the cost of assistance can change over time. It is hard to predict but with time more assistance may be needed to carry out tasks and therefore an increased amount may be needed.
4. Examine your previous expenses
While you are budgeting your expenses it may be possible that you have only recorded costs for this month. However the process of planning your finances is not this easy, it needs to be done over time. Make sure to start budgeting and listing down expenses 6 months prior to your moving plans. This way you can examine all your previous expenses along with your current ones to put together an accurate budget. Also, while budgeting for 6 months you will be able to notice patterns that you may have otherwise missed.
5. Emergency funds
Having emergency funds is one of the most important needs when budgeting your finances. You need to see how much you have in your savings, how much you receive from your pensions or any other government benefits and if any of your family members would assist you in the event of an emergency. Planning this is essential, because although your budgeting may be enough for your monthly expenses it may not be enough for an emergency, which makes having a plan largely beneficial.
6. Set goals for the future
It is always essential to set goals for the future when you make the decision to move to a senior living residence. It is good to compile a list of expenses that you would be needing money for. However, the fees paid to a retirement home usually covers nursing, meal plans, medical care assistance, housekeeping and laundry.