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By Jim McKinley
Special to the Financial Independence Hub
Baby Boomers came of age during a period of unprecedented prosperity and affluence in America, which was reaping the benefits of a super-charged post-war economy. And, like their parents and grandparents, instead of giving into frivolous financial behavior and spending their money, Baby Boomers tend to “hedge their bets” and play it conservative when it comes to spending. If this sounds like you, don’t let a concern about the future and the need for a tidy nest egg keep you from having fun and enjoying life. There are plenty of ways to balance preparing for the unexpected with having some fun.
Cost-conscious vacations
Vacations tend to be spendy affairs. The anticipation of visiting new and exotic locations can encourage a freewheeling attitude and a considerable outlay of money. If you’re worried about spending money you should be setting aside for a rainy day, forgo that Carribean or Danube cruise and look into something a bit closer to home, a destination you can easily reach by car. Sometimes there’s a memorable vacation waiting for you just a few exits down the road.
Do some research and look for an attractive but affordable bed-and-breakfast in a location that’s near a site of historical interest or a scene of natural beauty. If you don’t want to put highway miles on your car, check into coupons or online offers from a rental car company. Instead of stopping for pricey fast food, pack a picnic lunch and hit the trail for a fun and healthy hike. If you decide to stay in a hotel with a continental breakfast, grab some leftovers and cobble together your own lunch to avoid overspending on meals later.
Rethink dining out
There’s nothing quite like heading out for a nice dinner out with your spouse. The only problem is the cost: a nice dinner at your favorite French restaurant with wine and dessert will certainly leave you with a three-figure check. Instead, look for some of the less expensive gems every city has to offer, if only you know where to find them. Do a little homework, ask around and find a new “go-to” restaurant, perhaps a family-owned place with a great history and a menu full of homemade delights. You can also save money on wine by bringing your own bottle, which many restaurants will gladly allow.
Take care of the basics
If you have a frugal nature, you’re probably more comfortable taking care of financial responsibilities before you head out for a good time. Few things make you feel better about your money situation than having an adequate rainy day emergency fund firmly in place. It’s easier than you think: simply set up a monthly automatic transfer into a simple, interest-bearing savings account, though make certain it’s a monthly amount your budget can handle. If possible, save enough to cover at least six months of expenses in an account you can easily access.
Health care is another essential that can’t be overlooked. If you and your spouse don’t have access to a plan yet, check into Medicare, Medicare Advantage and the different plan options that may be available to you by researching the many online “tools” available to you. It’s worth checking around if you can find the help you need enrolling in Medicare and getting supplemental coverage for necessities like prescription medication and dental care.
Save on living expenses
Whether you want to stay in your existing home or relocate, lowering your monthly mortgage payment (if you have one) is a great way to cut costs. If you don’t want to downsize or can’t afford to pay for a home outright, consider a reverse mortgage that will allow you to pay off your existing mortgage or simply supplement your monthly income with tax-free funds.
To qualify, you must be at least 62 years old, use the home as your primary residence, have equity, and not be delinquent on any federal debt. To see if you qualify, as well as which type of reverse mortgage is right for you, schedule a free consultation with your loan officer or advisor.
Insurance?
Life insurance is generally considered a “must-have” for people with family and a lot to lose. However, you may be able to dispense with this monthly expense if your children are grown and out on their own, if you no longer own a home, and if you have abundant financial resources for any potential needs. Sometimes, getting rid of insurance is necessary to right-size your life.
Even if you no longer have life insurance, final expense insurance is definitely an option you’ll want to consider. This type of insurance will cover funeral and medical expenses when you pass, which can help protect the financial resources of loved ones.
There’s no hard-and-fast rule that says you have to defer enjoying your life until you’re completely confident about your financial stability. There are plenty of ways to cut corners and have fun without delving into your emergency funds.
