How to Manage Your Money in Your 50s and 60s

It’s never too late to re-evaluate and revamp your financial plan. Are you completely covered? Check out our top tips on how to stay up-to-date. 

Review Your Expenses and Make Changes

If what you’re doing isn’t working, it’s time to reassess. Do you want to be saving 10 percent, 20 percent, or more each year? First, make a list of where your current funds are going so you can get a concrete image of your funds and accurately adjust your habits. 

You should also list some of your financial weaknesses. For example, when you receive a raise, bonus, or tax refund, do you splurge the whole thing at once? Do you order takeout 5 times a week? Shed some light on your weak spots and write down your new goals beside them. Place it somewhere you see regularly, especially when reviewing your monthly budgeting so you can ensure your habits stick. 

Make a Budget and Stick To It

Examine your budget closely. Note where your money is going daily, weekly, and monthly. Try to find one or two things you can change to get closer to your savings goals. Once you’ve gotten into the habit, don’t stop. While one month of savings is useful, the biggest impact comes after years of dedication. 

Invest Money Wisely for Retirement

There are several ways you can ensure you’re not just saving, but saving smart. 

Always capitalize on any employee-matching contributions. Do everything you can to set aside the top limit of the employer. 

You’ll also want to invest in tax-sheltered retirement accounts like IRAs and a 401(k) to get closer to your goals, especially after the age of 50. If you need a catch-up lesson on how everything works, go to your local bank and ask for an advising session. They can help you determine your individual needs and retirement age goal and set up the best accounts for your interests. 

Make a Plan for Your Estate 

Don’t wait until it’s too late to update your estate plan. Update your will every few years to ensure all your recent assets and any new family members are covered, and it’s divided up as you wish. If you’re working with a professional, ask about how to organize your funds in the most tax-friendly manner. 

Speak to Your Peers

If you don’t know where to get started, don’t forget you’re not alone! In fact, only 12 percent of people with retirement strategies in place have written them down. There’s always more to learn, whether you’re just beginning your planning journey or you’ve been saving for years. Speak to friends and family in your age bracket to get new tips about how to improve your plan. 

Invest in Yourself

A fun way to protect your plan other than finances is by investing in yourself. Never stop learning new skills, enjoying new hobbies, and growing mentally. Not only does this help boost brain functioning, but it can help with general mood and well-being as well. 

You never know when new skills will come in handy. You can even use your hobby to generate extra cash on the side, especially after retirement. 

Prepare for Unexpected Expenses

Life has a way of throwing surprises. So in addition to your retirement savings, it’s wise to first build up a rainy day fund. Most experts suggest having up to three months of your normal salary saved away just in case. That way, if your job becomes threatened, you have the time to search for a new one more peacefully.