Carmen and I have learned financial challenges usually involve two issues. One is budgeting: knowing what you have and what you spend. Two is spending. As Captain Obvious would say, spending is all about spending.
Financial management involves knowing what you have, what you spend, and having a household budget. It’s household budgeting 101. The biggest issues around budgeting are housing. Assisted living and dependent living options are expensive. Assisted living runs between $1,500 and $10,000 a month. Dependent living runs between $10,000 and $30,000 a month.
Budgeting is critical for seniors that want their money to last in retirement. Without budgeting most seniors quickly lose track of their spending habits.
Spending becomes a very complicated issue for seniors. Once seniors stop earning money, whatever they spend takes away from what they have for the future. Unlike their younger selves, a senior’s spending is tied to their ability to future spend. When a senior spends too much, their retirement savings may run out.
And spending is really complicated for seniors. For most people, spending is fun and entertaining. We enjoy spending. Look at the issues below.