New Home Finder

BY METRO The average person will spend more than 50 years in the employ- ment sector. As retire- ment draws closer, many professionals begin to daydream about giving up the commute and having more time to pursue their personal interests. Even if planning for retirement has been many years in the mak- ing, it can take some time for a person to become acclimated to having less income. Ac- cording to data from the Bureau of Labor Statis- tics, "older households," which are defined as those run by someone age 65 and older, spent an average of $45,756 in 2016, or roughly $3,800 a month. That's roughly $1,000 less than the monthly average spent by typical American households. Housing, transportation, health care and food are some of the biggest bills retir- ees will have to account for. Aiming to have sav- ings in addition to any other retirement income or government subsidy coming in to cover that amount is a step in the right direction. Retirees can make their money go further if they take inventory of their spending and make some cuts where possible. Know where your money is going It's impossible to save without knowing what your expenses are each month. Many people are surprised to learn how much little things add up over the course of a month. For example, spending $4 for a takeout coffee each day can quickly become an expensive luxury. Add all expenses and see where you can trim, especially if there's a deficit each month. Consider some extra health care In the United States, Medicare participants can choose Medicare Supplement Insurance plans to help reduce out-of-pocket health care costs. Medicare Parts A and B only cover some of your health care costs. Supplemental in- surance can cover some of the costs not covered by original Medicare such as copayments, deductibles and coin- surance, according to AARP. Pare down possessions Take inventory of what you have and scale back where possible. If you are no longer com- muting to work, you may be able to become a one-car household. Downsizing your resi- dence can help seniors avoid spending too much of their retire- ment time and money maintaining their homes. Take advantage of senior discounts Take advantage of the many discounts that are offered to seniors. Retir- ees can usually save on restaurants, travel, gro- ceries and much more by simply shopping on specific days or verifying their age when checking out. Less-expensive life insurance According to Cheap- ism, a site that advises consumers about how to be more frugal, the chief purpose of life insurance is to replace income to ensure the financial security of dependents in the event of death. Retirees may have no dependents and little income. Therefore, a large life insurance policy may not be necessary, espe- cially if you've already set aside funds to cover funeral costs. Pay off a mortgage Housing is many indi- viduals' most substan- tial expense. Paying off a mortgage can free up more money each month and allow re- tirees to spend their golden years doing as they please. As retirement nears, adults can employ vari- ous strategies to reduce their monthly expenses. Ways to cut costs during retirement Saving strategies for young adults BY METRO When a person is young, saving money may be the furthest thing from his or her mind. After all, this may be a time to en- roll in college or trade school, make a first big purchase, such as a car, or even get mar- ried. Thinking about establishing a solid fi- nancial footing for the future can take a back seat when life is filled with so many significant events. But it's never too early to start saving — even when saving seems to be an impossible task. Young adults should keep saving in mind and look to various strate- gies that can set them up for long-term finan- cial security. Set long-term goals It's easier to save when saving is attached to specific goals. While some may aspire to retire early, establish an emer- gency fund or to pur- chase a home, others may want to save for an over- seas vacation. Motivation to save can make it that much easier to do so. Determine where you spend the most Saving money on smaller purchases will add up over time, but to really build a robust savings, figure out your biggest expenditures and how you can cut back to pad your sav- ings. The Logic of Money reports that the average American spends more than 60 percent of their income on housing and trans- portation. Figuring out how to cut costs in these categories can be a great way to save. Use cash-back apps Young adults are tied to their digital devices. Why not make them work for you? Free cash-back apps give you money back for various purchases. Ibotta and Dosh are just two cash- back apps available. Some can be linked di- rectly to a credit or debit card to have passive income deposited di- rectly. With others, you can cash out as a direct deposit or via a payment app such as PayPal. Save 33% of income Make it a point to put away $1 for every $3 earned into a savings account, advises U.S. News & World Report. That is a good measure for establishing a rainy day fund. If you don't trust yourself to transfer the money, have a set amount automatically deposited from your paycheck into a desig- nated savings account. Treat credit cards like using cash The "buy now, pay later" option is an at- tractive trap to fall into. Using credit cards often is a safer way to pay merchants, because you're risking others' money rather than your own with a debit card. However, using credit can make it challenging to visualize what you're actually spending. Do not purchase more than you can pay off within each billing cycle. Set account alerts on your phone to let you know when you've hit your budgeted credit-card spending limit. Resist the urge to open and use too many cards. Young adults can begin saving early with some conventional and highly effective strate- gies. H12 BAY AREA NEWS GROUP 001 Homes | Advertising Section

• Cover