Like every puzzle, budgeting for senior living and long-term care can be an intimidating undertaking, marked by jagged and odd-shaped pieces. But, just like the puzzles we do at home, budgeting gets easier when we address it at the start of the New Year with a track records to our backs. It is prudent to revisit our model periodically during 2017.
What we invariably learn is that as our health and living needs change so will our budget. To protect ourselves, we should create our budget with an emergency reservoir and know what assets we might need to liquidate in an emergency.
Build Your Budget with your Future in Mind
Trying to navigate senior living without a budget makes little sense in today’s environment where government and the healthcare/senior care system face a new administration with very different priorities than the outgoing administration. Change is coming to Washington and change will most likely affect seniors and their budgets. The best way to be ready for change is to create a realistic budget.
The experts at Life Care Funding are eager to help seniors. Our staff is ready to answer questions about solutions and risks facing Baby Boomer’s senior living and senior healthcare.
Aging in Place
Seniors are often inclined to age in place with at home or live-in caregivers. There is a certain comfort in this choice but seniors are often better served living in continuing care retirement communities where assisted living and memory care are available onsite.
In order to evaluate the cost of the best living solutions, the place to start is by comparing your budget to other possibilities. In addition, seniors should review their balance sheet to see that they are maximizing the return on their investments. We all want to protect our assets but sometimes the best use of certain assets like life insurance is to help pay for long-term care.
Life Care Funding is at the ready to assist seniors and their loved ones as they plan for the future and make sure assets are performing toward the goal of sustaining long-term care and security in a changing world. Even if there is no plan in place, there is time to secure the future of seniors.
How To Structure Your Budget
As Baby boomers build their budget for 2017, AARP reports some interesting, seemingly unbelievable data about millennials.
- Only 38 percent of millennials have used a brick and mortar bank.
- But, 42 percent have relied upon payday loans, pawnshops, auto title loans and tax refund advances.
We know better! Building a budget and sticking with it is the way we were raised and taught. Let’s begin by reviewing a list of expenditures and identifying our income sources. We always want to make sure our budget is realistic so comparing income to expenses is a logical way to proceed.
- Social Security
- Pension/Profit Sharing
- Rental Income
- Reverse Mortgage
Every month compare your expected income by category with you actual income and note the difference. If there are permanent changes to your income, you may have to reduce your expenses. By analyzing your income stream, you will also get a clearer view of your cash flow.
- Electric, gas, water
- Auto Payments
- Total Income
Again, as the year unfolds, list your expected expenses and compare to actual. Note differences and if your actual expenditures consistently exceed your expected expenses, revise your budget accordingly. Ideally, your income will more than cover your expenses.
The experts at Life Care Funding work with seniors every day to help plan for the future. If you are a senior or a senior caregiver, make use of this invaluable service to eliminate surprises down the road. Reach out to the Life Care Funding’s experts today.