Are you in your golden years and wondering how well you handle your finances? It's a common concern for most adults over 75 years old.
But the truth is, your age doesn't define your financial success. Plenty of people in their 70s, 80s, and even 90s are killing it when it comes to managing their money.
So how do you know if you're one of them? In this blog, we will share the top 12 signs indicating you're slaying your finances at 75+.
1. You Have a Healthy Emergency Fund
When you're in your mid-70s, a healthy emergency fund is like a financial safety net. Consider it a rainy-day fund for unexpected costs – say, an urgent home repair or sudden medical expense.
It shows you've been smart about saving and not just living paycheck to paycheck. You've planned for the unpredictable, and that's a big win for your financial health!
2. You're Debt-Free or Have Manageable Debt
Being debt-free or having low debt in your 70s is a clear sign you're rocking your finances. It means you've been disciplined about borrowing and diligent about repayment.
You've avoided the trap of high-interest debt that can snowball out of control.
If you do have some debt, it's at a level you can manage comfortably within your income and savings. That's a surefire indicator you've been making wise financial decisions.
3. Your Retirement Savings Last Comfortably Month to Month
If your retirement savings are easily seeing you through each month, that's a big thumbs-up for your financial savvy. It means you've thought ahead and built a nest egg that's working for you now.
You're not worrying about running out of money or making ends meet. Instead, you're enjoying the fruits of your labor without financial stress. That's a sign that you've hit the sweet spot in managing your finances in your 70s. Great job!
4. You Have a Steady Income Stream Apart From Your Savings
When you're in your 70s and have a steady income stream besides your savings, it's like having an extra layer of financial security. Maybe it's from a part-time job, rental income, or investments.
It shows you've made smart choices to ensure money keeps flowing in, even when you're not working full-time.
This extra cash can help cover daily expenses, unexpected costs, or fun stuff like hobbies or travel. Clearly, you're doing something right with your finances!
5. You're Able to Afford Healthcare and Insurance Costs Without Stress
If you can comfortably cover healthcare and insurance costs, you're certainly on top of your financial game. In our 70s, these expenses can be significant, but if they're not causing you sleepless nights, you've planned well.
You've factored in these costs and ensured they don't drain your resources or create stress. This financial foresight is a sign that you've mastered the art of managing money in your golden years!
6. You're Keeping up With Inflation
If you're keeping pace with inflation, you're ahead in the financial race. Inflation can eat into the value of your money over time, making things costlier.
But if you've planned your finances to account for this, then kudos! You've ensured your income or savings grow enough to maintain your purchasing power.
You've built a financial shield that inflation can't penetrate. That's a sure sign of smart money management in your 70s!
7. Your Living Expenses are Well Within Your Budget
If your everyday expenses fit comfortably within your budget, you're living within your means – and that's fantastic! You've figured out how to enjoy life without overspending.
You know where your money goes each month and have it under control. This is not just about being frugal; it's about being wise with your money. And if you're doing this in your 70s, it's a clear sign you've nailed the financial game!
8. You Have a Planned Budget for Leisure and Hobbies
You don't want to waste your golden years just worrying about money. You want to explore yourself and the world around you. And if you have a planned budget for leisure and hobbies, it means you've got your priorities right.
It shows that while money is important, it's not everything to you. You know how to enjoy life within your means and keep your finances in check simultaneously – that's some serious financial confidence!
9. You're able to Financially Help Your Family if Needed
Family comes before anything else – a sudden medical emergency or a grandchild's graduation. And if you can support your family financially when they need it, that's a testament to your financial strength.
It shows you've built up enough resources and planned for contingencies so that you can be there for your loved ones when they need you most. That's something truly special!
10. You Have a Good Credit
No one knows what life holds for us – even in our 70s. And having a good credit score means you're prepared for any surprises that come your way.
Whether it's buying a new car or applying for a loan, your credit score is an important factor in financial decisions. And if yours is good, it means you've been responsible with credit and have managed it well over the years.
11. You Understand Your Financial Situation and Keep Track of All Your Expenditures
This is all about budgeting and tracking your expenses. If you're in your mid-70s and clearly understand your financial situation, you've achieved something great.
You know where your money is going, how much you're saving, and how to adjust if needed. This level of financial awareness is critical to maintaining healthy finances at any age.
12. You're Not Worried About Outliving Your Money
As we mentioned many times, planning for the unpredictable is crucial. And if you're not worried about outliving your money in your mid-70s, it means you've done just that.
You have a solid financial plan that includes emergency funds and investments to support you through retirement. This peace of mind is priceless when managing finances in your golden years.
13. You're able to Make Generous Contributions to Your Favorite Charities
Giving back to the community is one of the most precious things we can do. And if you can make generous contributions to your favorite charities in your 70s, it's a sign of financial success.
It shows that not only have you taken care of yourself and your family, but you also have the means to support causes close to your heart. Even if it's not that much, every little contribution counts, and it's a beautiful reflection of your financial strength.
Signs You Can Handle Money
So there you have it – whether you are in your 70s or not, these signs indicate you've got a handle on your finances. Of course, everyone's financial situation is different, and there is no one-size-fits-all approach to managing money. But if you can tick off most items on this list, congratulations – you're doing great!
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I’m Steve. I’m an English Teacher, traveler, and an avid outdoorsman. If you’d like to comment, ask a question, or simply say hi, leave me a message here, on Twitter (@thefrugalexpat1). Many of my posts have been written to help those in their journey to financial independence. I am on my journey, and as I learn more I hope to share more. And as always, thanks for reading The Frugal Expat.