As the medical world continues to advance in leaps and bounds, more people than ever are living well past their 70s. Once you turn 18 years old, finances are different for every stage of life. From daring investments to trustworthy savings accounts, there are several key factors to evaluate as you grow into a wise senior citizen.
College Degrees aren’t Guaranteed Jobs
With the Great Recession of 2008 and 2009, college students and recent graduates found themselves in unfamiliar territory. In the past, a college degree meant almost a guaranteed job after graduation. High unemployment made this dream a myth. Before you take on any more college loan debt, it’s critical to add up what you already owe. You must be able to find a career with a paycheck possible to pay off loans while living reasonably. It may be necessary to move in with family or friends to help with loan and financial management for a time.
Doctor Visit Alternatives
Making an appointment with a doctor for a simple question creates a huge bill for a 5-minute conversation. To save on medical costs with simple questions, consider a consult with an online doctor. Board certified doctors answer your questions and even prescribe certain medications. Each site is slightly different, but any charges are typically lower than a standard office visit. You don’t have to cover their overhead for that appointment.
Aging Parents and Care
As your parents enter retirement, you could be entering the workforce after college. You may have your finances in order, but it’s possible that an unforeseen expense could pop up: elder care. Whether a parent has a chronic disease or a sudden bout with cancer, caring for elderly parents is a drain on the mind and wallet. Before any health issues arise, meet with your parents to go over finances to keep your financial future intact while they’re cared for properly.
Encourage Good Grades
A huge expense that sneaks up on young parents is college. Although you can contribute diligently to a college fund, the amount is almost never enough for all expenses. Foster good study habits in your kids to build great grades. If your children excel at school, they have a better chance of obtaining scholarships and grants for college. Full scholarships aren’t unheard of for certain stellar students, freeing you of possible parent loans and high interest rates.
Contribute and Forget
Never forget that you need to retire at some point too. Always add to your retirement account, preferably before taxes. Because there’s a huge taxation amount on early withdrawals, consider this money as off-limits until retirement. Your financial future depends on this account along with government programs in your later years.
The world is certainly much more different than it was 25 years ago. Keep in mind that times change dramatically in just your lifetime, making financial management critical during certain milestones. With savings high and debt low, you’ll find a way to afford all the crucial items in life.
