Anyone who’s had to live off of disability and/or retirement income alone knows just how hard it can be to stretch those pennies. Without the right financial management skills and practices in place, it can often feel futile trying to escape the feeling of living from income check to income check.
That’s why we’ve written this article. In it, we’ll discuss a few specific tips on managing money from disability and retirement income forms. These are practical tips that you can start implementing today in your daily life.
1. Set a Budget
The first thing that you need to do when it comes to managing your finances is to set a budget. Having a budget is crucial to well-run finances, as it tells the story of where your money will be allocated and how much will be left.
Without a budget, you really won’t have a good idea of what expenses are the most significant and where you need to cut spending down.
There are many tools that you can use to set up a budget. The most elementary of these is the trusty spreadsheet. Whether it’s Microsoft Excel or Google Sheets, you’ll be able to set up various categories and allot certain amounts of money to each, allowing you to compare income and expenditure so that you have a better idea of cash flow.
2. Keep Saving
Many people who get a disability payment or retirement income think that they don’t have to save because this income is guaranteed for a long period of time. However, that is not the case.
Even if the money is going to keep flowing in, it is going to do so at an incremental rate. You still need to have money on hand in case something big comes up that you need to pay for, like medical bills, automotive repair, or the like.
3. Track Your Finances
The next thing to consider is that you need to track your finances. After all, having a budget is virtually pointless if you don’t have a good idea of whether or not you’re sticking to it!
Start tracking your expenditures with tools like Mint. This tool will link to your spending accounts to analyze and categorize transactions.
4. Bolster Credit
When it comes time to buy a house or finance a new car, your credit score will be crucial. Always pay your credit cards and focus on getting out of debt to ensure that your credit score is as high as it can be.
5. Get Legal Advice When You Need It
Last but not least, be sure to get legal advice when you need it. If you are denied disability or aren’t getting the full sum of retirement income that you are owed, then you can hire a VA Disability Retirement Attorney to help get what is rightfully yours.
Managing Money on Disability and Retirement Income
There you have it. Now that you know more about disability and retirement planning, you should have a far better understanding of how to manage your finances in the most effective way possible.
Be sure to check out the rest of the articles available to read on our website before you leave!