If you've faced financial struggles in the past, planning for retirement can be a daunting task. However, it’s never too late to turn things around and secure a comfortable future.
By adopting a new approach to money management, retirees can improve their financial situation and enjoy their golden years with less stress.
Here are 11 practical ways retirees can change their “money mindset” and thrive financially.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Decide that it’s not too late to turn things around
The first step to improving your financial situation is to believe that it’s possible. Regardless of past mistakes or missed opportunities, deciding that it’s not too late to turn things around can set a positive tone for your financial journey.
Embrace the mindset that with careful planning and deliberate actions, you can make significant improvements that will help you get ahead financially.
List some financial goals you would like to achieve in the next 5 years
Setting clear financial goals is crucial to creating a roadmap to financial stability. Whether it’s paying off debt, saving for a big purchase, or boosting your retirement savings, establishing specific targets helps you stay focused and motivated.
Write down goals and review them regularly to track your progress and make adjustments as needed.
Choose where to eliminate expenses so you can reach goals
To achieve financial goals, you may need to cut back on certain expenses. Review your monthly budget and identify areas where you can reduce spending.
It could be as simple as dining out less frequently or shopping for more affordable alternatives. Every dollar saved brings you closer to your goals.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.49%, 24.49%, or 29.49% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Read books that will help change your ‘money mindset’
Education is a powerful tool for transforming your financial mindset. Numerous books written by financial experts can provide valuable insights and strategies for managing money effectively.
Some popular titles include Dave Ramsey's “The Total Money Makeover” and Vicki Robin and Joe Dominguez's “Your Money or Your Life.” Reading these books can inspire and empower you to take control of your finances.
Manage your money through a ‘bucket’ approach
The bucket approach to money management involves dividing finances into different “buckets” based on your spending and saving goals. For example, you could have buckets for daily expenses, short-term savings, and long-term investments.
This method helps you allocate funds more effectively and ensures that you meet financial objectives.
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Weigh whether to invest in stocks, real estate, or other investments
Investing can be an excellent way to grow your wealth during retirement. However, it’s important to weigh options carefully.
Stocks, real estate, and other investment vehicles each have their own risks and rewards. When deciding where to invest, consider your risk tolerance, time horizon, and financial goals.
Consider seeking the guidance of a financial pro
A financial advisor can provide personalized advice and help you develop a comprehensive retirement plan. They can assist with investment strategies, tax planning, and budgeting to ensure you make the most of your resources.
Seeking professional guidance can give you peace of mind and confidence in your financial decisions.
Determine if downsizing your home will help financially
Many retirees find that housing is one of their biggest expenses. Downsizing to a smaller home or moving to a more affordable area can free up funds that can be redirected toward savings or other financial goals.
Assess your current housing situation and consider whether downsizing is a viable option for improving your financial stability.
Choose ‘staycations’ and modest getaways over fancy trips
Traveling more often is a common retirement goal, but extravagant vacations can quickly deplete savings. Instead, opt for “staycations” or modest getaways that allow you to enjoy leisure time without breaking the bank.
Exploring local attractions or taking short, budget-friendly trips can be just as fulfilling and less financially draining.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Track your spending
Keeping a close eye on spending is essential for maintaining financial health. Use budgeting apps to track expenses and identify wasteful spending patterns.
Being aware of where your money is going can help you make more informed spending decisions and avoid unnecessary purchases.
Consider taking on a part-time job or side hustle
If you find that your retirement income isn’t sufficient to cover expenses, consider taking on a part-time job or side hustle. Not only can this help you earn extra money, but it can also keep you active and engaged.
Look for opportunities that align with your skills and interests, and remember that even a small income boost can make a significant difference.
Bottom line
Changing your “money mindset” is the key to thriving financially in retirement. By setting goals, reducing expenses, and exploring new financial strategies, you can create a more secure future.
Remember, it’s never too late to start making positive changes. Take control of your finances now and see how your retirement savings stack up. What steps will you take today to improve your financial well-being?
Lucrative, Flat-Rate Cash Rewards
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Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
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