Advertising

Finding a Solution: The True Cost of Aging in America

Advertising
Finding a Solution: The True Cost of Aging in America

People are living longer than ever before. At first, that sounds like a good thing. Who doesn’t want more years to spend with their loved ones? Unfortunately, many people are paying the price for their long lives. Long-term care, particularly in assisted living facilities and nursing homes, can quickly become expensive. Nationwide, it costs an average of $43,200 a year to live in an assisted living facility. Move to a nursing home and that cost skyrockets to over $80,000 for a semi-private room or $90,000 for a private room. In some areas of the country, it’s even higher. In California, for example, the cost of a private room in a nursing home averages around $100,000 a year.These costs simply aren’t affordable for many aging adults, especially for those who never planned to outlive their retirement income so substantially. While advances in medicine have made it possible for aging adults to live high-quality lives longer than ever before, unfortunately, in many cases, their retirement savings are depleted long before that point. The solution? “Aging in place,” which allows adults to stay in their own homes for longer. Here are some of the options to make this a more viable solution.

Home Care Services

Home care services, which may be paid for by Medicaid, allow elderly individuals to get the care that they need in their own homes. They can receive basic medical care services, help with personal care, and even get transportation to and from medical appointments. In some cases, home care services will also include meal preparation or provision. The median cost of six hours of care from a home health aide is around $30,000 per year — much less expensive than an assisted living or nursing home facility. In addition, some individuals need less assistance than others, which reduces these expenses. It is for this reason that Medicaid has programs in place that provide home care for many individuals who do not require institutional care.

Advertising

Adult Day Care

Adult day care is more than just a place where your elderly loved one will be looked after in a secure setting. It’s also an opportunity for them to socialize, participate in activities, and have their basic medical needs seen to. The median cost of adult day care is $17,904 per year. If no other home care services are necessary, adult day care can significantly improve an aging individual’s ability to keep their retirement savings in place for much longer than if they had been in a nursing home or assisted living facility.

Advertising

Home Modification

When your elderly loved one purchased their home, they likely weren’t considering their needs as they aged. Things like wheelchair ramps, widened doorways, and accessibility options for showers and bathtubs can drastically improve your loved one’s ability to remain in their own home. While Medicaid and Medicare may do not cover physical modifications to the home, some states offer special pilot programs that can help with home modifications. If your state does not cover these modifications, they are acceptable expenditures in terms of using your loved one’s existing assets and can be used to lower that asset amount to meet Medicaid thresholds. The Medicaid “spend down” can be quite complex for the uninitiated, and it is therefore recommended that you reach out to a long-term care Medicaid eligibility expert or educate yourself fully and learn as much as you can about the process.

Advertising

Looking Forward

While the current health care model is working, it’s evident that the state cannot support the needs of an aging population indefinitely. Many revisions are needed to the system in order to ensure high-quality care for aging individuals in America. It’s going to take personal planning as well as public planning to avoid a crisis. Going forward, retirement age may shift to reflect the change in life expectancy. Improving the health of older adults to allow them to remain active and productive members of society longer will also contribute to the solution — but it’s not a perfect fix. In addition to steps taken by the population as a whole, personal planning is necessary in order to ensure that aging adults will be able to provide for their own needs for the duration of their lives.

Advertising

Advertising

More by this author

How to Pay for Senior Care Finding a Solution: The True Cost of Aging in America

Trending in Money

1 Financial Freedom is Not a Fantasy: 9 Secrets to Get You There 2 40 Healthy And Really Delicious Meals You Can Make Under $5 3 Life Insurance: A Secure Way To Protect Your Future. 4 How To Save Money On Groceries: 13 Quick Tips 5 10 Investment Tips For Beginners

Read Next

Advertising
Advertising

Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Advertising
Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

Advertising

Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

Advertising

If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

Advertising

Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

Advertising

8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

Advertising

Reference

[1] Hartford Gold Group: IRA Retirement Accounts

Read Next