HawaiiUSA’s own Kim Dodson, Financial Wellness Partner and Certified Credit Union Financial Counselor, gives budgeting tips to kupuna and those living on a fixed income. See the interview with Diane Ako on KITV’s Aging Well.

 

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Why is it important for seniors or folks with fixed incomes to learn how to budget their money?

In general, budgeting has a positive effect on all aspects of a person’s financial situation. Knowing where your money goes helps pay bills on time and with ease and it also reduces stress.  When a person is on a fixed income though, it is even more imperative to understand how far your money goes and what you have left over to enjoy life or put aside for savings. Every penny counts when you’re dependent on an exact amount of money every month.

 

What are some tips you can give to help someone create a fixed income budget?

It’s important to first know what your income is, and to know your bills.  What’s coming in, and what’s going out. Also include annual expenses! Make a list of these things and organize these amounts so you can see exactly how much you have, how much you need to save, and how much you need to pay.

 

There is a 50/30/20 budget rule that is good practice for creating a personal budget. Fifty percent of your money should be spent on your needs. Thirty percent goes towards your wants. And the remaining 20% should go towards savings.

 

Should seniors and retirees be sourcing help for budgeting or is this something that can be easily adopted?

HawaiiUSA has a lot of online resources about financial wellness and how to manage money that people can easily access on our website. We also do community outreach to various senior centers and often present on budgeting tips and other financial advice for seniors.

 

Sometimes, just having a plan in place with organization of your finances helps tremendously when trying to budget on a fixed income.

 

Schedule an appointment with us for guidance on your budget or other financial goals.