As we reach old age, we have to face a problem: our incomes are lower. But still, the bills keep coming.
Seniors should be synonymous with well-being and tranquility. For this, we will talk about how to reach old age without debt.
Do not spend more than you earn
Undoubtedly, this is the first lesson for everyone, and especially for the elderly, which in most cases count only as retirement.
Spending more than you earn means getting into debt and losing peace with lack of money for basic needs: food, housing, health, leisure.
Avoiding debt and saving ensures a peaceful old age.
Many financial institutions use the elderly person to be a pensioner of the INSS (National Institute of Social Security) to offer loans. The advantage for these companies is that the loan installments are deducted directly from the account when entering the pension balance.
Thus, the company does not risk the elderly not honoring with debt.
Older people should not fall into this trap, as income will be compromised, causing concern and many inconveniences. Some seniors borrow more than one loan, pledging their income and going through serious financial difficulties.
Use credit consciously
Reaching old age does not mean that you are not allowed to use any of the resources available in the financial market. However, with lower incomes, it is important not to commit more than 10% of retirement with loans, credit cards or other transactions.
Still, only perform these operations in cases of extreme need, such as health problems.
Not indebted to third parties
Being pensioners of the INSS, the elderly are easier to get loan – as has been said here. So sometimes relatives and acquaintances may ask the senior to borrow money for them.
Avoid this kind of favor. Don’t be shy about explaining your situation, making it clear that you depend on retirement to cover housing, food and health.
Many seniors have almost all retirement committed, making debts to privilege others.
Lower Credit Limits
Older people should ask banks and financial institutions to keep their credit limits at a value that does not compromise retirement.
They may ask to leave a small overdraft and credit card limit. And when using, they should try to cover the debt as soon as possible, even if they have to save on some other expense, such as leisure.
Make a reservation during your youth
It may not be possible to save large amounts, but it is entirely feasible to start thinking about old age when you are, on average, 40 or 50 years old. Try to save an amount to ensure a debt-free and much more peaceful and enjoyable old age.
A great option is private pension. The sooner you start, the better. Generally, the annual yield is 12%.
Social security has an attractive income, much higher than savings.
At the end of the plan, the beneficiary can redeem the full balance. You can still receive a monthly amount of what you have been earning all these years, not just depending on retirement.