Emergencies don’t end when retirement begins. A single home or auto repair – say, you need to replace your roof or get a new transmission – can strike a devastating blow to the budgets of fixed-income retirees who don’t have money set aside for just such calamities.
Unfortunately, quite a few baby boomers are members of the no-emergency-savings club. According to a Bankrate survey, 25% of boomers have no cash whatsoever put away to cover an emergency. Another 18% of boomers say their emergency savings would cover less than three months’ worth of living expenses.
Review your budget and reduce spending temporarily, so you can slowly build up your emergency fund. Six months’ worth of living expenses is generally recommended – just 36% of the boomers surveyed had hit that benchmark – but three-plus months should be adequate for many retirees. And keep insurance up to date to avoid taking a big hit from an auto accident, house fire or sudden illness.
You might think that buying products at bargain-basement prices is the best way to save…
It's easy to say you want to save more money. It's harder to know where…
You've found your style, you've witnessed some of the best music ever created, and you…
Turn your old junk into serious profit What's old isn't always new again, but your…
Divorced in Retirement? Getting divorced can throw a wrench into your financial planning. And if…
Here’s what could be behind that high electric bill Nobody likes to get a high…