Money saving ideas

Many years ago, we were warned that inflation was going to come back, and it would come back with a vengeance. In the past when we had inflation, the money we had in savings or in stocks was protected. However, today the banks are raising interest rates on borrowing but not on savings, and the stock market is struggling to keep in positive territory. Many of us are worried about running out of money in retirement. Inflation is soaring, stocks are crashing, bank interest rates on savings are stagnant and to top it off, we are living longer. All of which means your money has to work harder to last. Here are some ideas:

There are stages to your retirement, in the early years we treat every day like it’s Saturday, we take a few extra vacations and trips with family and friends. This was fine when inflation was not going crazy. Now is the time to rein in your expenses or if you can a part-time job to supplement your income or to look for better places to save your money.

It’s natural to want to help your children and grandchildren out, but make sure before you do that you can look after yourself. My grandfather would pass money on to his children to help out, but he always made sure that he could cover his needs. So, before you book that cruise for the entire family or give your child the down payment for a home, make sure you can afford to do this. You may have to learn to say no, at least for now. Make sure you have enough cash in the bank to live comfortably in retirement, and then lend a helping hand.

Some people go into retirement with the intention of downsizing to a smaller home. Don’t treat the equity in your home as a windfall. If you need it, count it as an income stream you can live off of in retirement.

Close to 70 percent of Americans 65 and older will need long-term care in their lifetime, according to the Urban Institute and the U.S. Department of Health and Human Services. Some have family members to rely on, but close to half will need to pay for long-term care on their own, and many have no plan to do so. If you can add long-term care coverage to your retirement savings plan.

Lingering or new debt can be a big blow to your retirement savings. Try not to bring any debt with you into retirement. If you do, work on paying it off and resist accruing new debt.

Finally, remember that the great wealth-eroding factor has always been inflation. Your investments have to work harder to hold their value over the long haul. With inflation soaring, a portfolio checkup may be in order to ensure your investments are allocated properly.