- News & Events
News & Events
Financial Literacy for Active Adults
You’ve chosen the retirement lifestyle at Westminster Village and left a lifetime of career and work. You’ve planned and saved for this moment, so the hard work of financial planning is over, right? No matter what age, we all want to be good stewards of our money. We want to be sure that there is enough to meet our needs. Our retirement lifestyle is especially better when we don’t have to worry about money. Saving money has never been easy but with some strategic plans, anyone can do it.
Dave Ramsey, financial guru and radio personality, guides his financial students and listeners through the budget planning process. He is a big proponent of budgeting every cent that you have each month. He uses what he calls the “zero” budget and he says the steps to budgeting are easy.
- Write down your total income.
- List all your expenses (including savings).
- Subtract income from expenses to total zero.
- Track your expense throughout the month.
Credit cards make buying things much easier. Sometimes, too easy. Credit cards often allow us to buy more than what we might have purchased with cash money. If we buy with cash, then we can only buy as much as the amount of cash that we have. We tend to think about purchases more when we use cash. We ask ourselves whether or not we really need the item before we buy it?
I know the trend is to move away from actual cash, but even if you use a debit card or an online payment service, the mindset is the same. Want to make a large purchase like a new car or that additional new recliner for your residence? Saving the money before the purchase will make the purchase cheaper than buying on credit and making interest payments.
Ramsey suggests that each of us should have an emergency fund that we never touch. Our budgets should cover anything that comes up, but still having that fund will make us feel more confident. Having an emergency fund means that you don’t have to use that credit card when an emergency occurs.
Trusted people and changing decisions
After we retire is probably not a good time to start changing too much if we already have a good financial structure. Stick with the trusted advisors you’ve always known. Too many people think that older adults are no longer able to stay on top of their finances. They are ready to manipulate you out of your hard-earned money. Don’t make too many risky decisions about your financial health. Stay the course and keep what you already have. Some experts suggest that you do simplify things.
When you’re a good steward of your money, you can continue to enjoy all those events in West Lafayette, Indiana or activities on the Westminster Village calendar without worry or stress over how much it will might cost.
-Elaine of the Westminster Blog Team