Yes to CDs or treasury bonds or TIPS. Let that money make money. Some stocks that provide dividends are a good option, too if you can handle some volatility. A good dividend ETF with a low expense ratio makes it easy.
The biggest mistake we all make is assuming we won't need care. Most of us will if we live long enough and planning for that is important. Sometimes it's long-term care insurance, sometimes it's just knowing what your options are in your area, including which places take Medicaid.
One thing I tell people that they don't think about is the hidden cost of their stuff. I've seen people who are still renting a storage facility they can't afford, or have a larger place than they need because of their belongings. Keep the things that matter, donate, give away, or sell the rest, and if possible, let the process feel like getting lighter, less tethered.
The things I did to put myself in a decent financial situation:
-Lived in apartments for years (people think: but rent goes up! The thing is, with our house, property taxes go up every year. And you don't have to pay for a new roof in an apartment)
-Paid off our mortgage
-Started investing in my retirement plans while I was still in my 20s, and maxed out my contributions as soon as I could.
-Didn't own a car; relied on public transit
But I also made sure to take a vacation every year. To live in the present as well as for the future, because we never know how long a future we actually have
Waiting longer to take Social Security is standard advice, but not automatically the best choice for everyone. I did the math--deeply detailed spreadsheets on what I would receive under several scenarios--taking SS at 62, 65, 66 & 4 months (my eligibility), and 70 assuming I would live to 92. Under the first 3 scenarios I didn't start "losing" money until age 82-83. I ended up taking it at 65 because I want to use the funds to travel now. Later I can downsize my house and use the proceeds for health care if needed. This is an individual choice and should be based on one's health, other sources of income, and how one chooses to live.
And P.S. making, and monitoring, a monthly budget is essential. I prepare monthly reports on our net worth, expenses, and income so we know EXACTLY where we are financially at all times. Free, or low cost, personal finance software makes this incredibly easy to do--I spend about an hour a month preparing the statements, and 3-5 hours at the end of each year reviewing trends and making adjustments. If you can get comfortable with online tools, money management is not hard! Too many women treat finances like a mysterious black box--to their own detriment. Knowledge is power. (And yes, use the library!)
your first chore is to quit your book habit on Amazon. Shocking, I know. there is a much better option: Friends of the Library. most public libraries have a separate, but allied, organization that accepts all sorts of book donations. Volunteers grade them by content and condition, and pass them along to the Friends of the Library Book Store.
That store may, or may not be hidden in the main library. it may be in a nondescript building on a side street in a neighborhood you pass by.
At Friends of the Pima County Library in Tucson, Arizona, hardbound books sell for anywhere from $3 to$10. The sales room is only open one, long weekend a month from 9am to 2pm.
Fridays are regular price. Saturday's are 25% off for ages 55+. Sunday is half price day. Monday, you buy one of their bags for $1 and fill it with every book you want; you pay $10 for the whole bag.
In 2024, The Friends of the Pima County Library provided $240,000 additional funds to the library. not only that, it's a welcoming place to volunteer!
Hi Thelma. You're right. We need to spend more time at the library and less time online. Most libraries have books for sale at super low prices as well as all the free books on the shelves waiting to be checked out.
Libraries offer other ways to save money, too. The Pima County Library offers culture passes one can check out for free admission to cultural institutions. Today I went to the Arizona-Sonora Desert Museum for free (saved $29.95)
I just moved to Tucson and am loving the library system! I'll def check out the book sale, but I must say, after so many years of buying books of Amazon, I'm really enjoying borrowing. Not only does it save money, but honestly, it's a way to just to get out of the house and have a pleasant social interaction. I love books, but really, I don't need to own many. Using the library connects us to our communities. And when I think I simply must own a book, I'm using my local independent bookseller (check out bookshop.org, which connects you to local shops, and you can also buy e-books through them).
Sue, I love your articles and this one is a wake-up call. As Ladies, we cannot count on luck or the men in our lives to support us in our older years. Reading these posts awakened me to the realization of the potential numbers of women who have given little thought to their financial well being. I worked full time for 45 years in the rural Midwest where we are not known for high salaries. It was not easy. I am married for 42 years and have one adult child. At no time during the past 45 years did I even contemplate or consider the need to rely on others financially. It was very hard to be a mom, an employee, a farmers wife, and a commuter. There were decades of stressful days with no promise of what the future might hold, but I knew it was my responsibility to contribute as best I could. I do not regret that. Please start now, right this minute, to do what you can to prepare for your financial future regardless of your age or situation. Time goes by ever so quickly and statistics tell us women usually outlive men by several years. Thank you Sue for broaching such an important issue!
I have found online banks offer better interest rates both on CDs and savings accounts. Bankrate.com gives good info on the going rates. I think there’s messaging around money, investing, budgets etc being super complex, and not being intimidated has been key for me.
Waiting at least 24 hours to buy something and using cash or holding myself to paying off my credit card monthly are good reminders about wants vs needs.
Thanks for the website, Amanda! I just put a CD in my first online bank. I must admit that putting it in a bank that was not brick and mortar made me nervous, but they did have the best rate for the longest period of time.
I owe you a huge debt of gratitude for this article, I will admit that I panicked a few months ago and applied for Social Security at just 63 because I figured getting some of my money back is better than getting none of my money back. I was subsequently approved and disappointed in the amount, so thanks to your article, I was able to submit a withdrawal of my application (didn’t know I could)! I have always intended to wait until I was 70 and have some regretted filing early so this was an opportunity to recalibrate. Much gratitude.
Wow, Beth, that's great. I didn't know you could withdraw your application. But yes, it will make a big difference if you can wait. Crazy as things are right now, I still believe Social Security will be there for us when we're ready.
Not a fun topic but very thoughtful and helpful for those who are thinking about retiring. Wow! The time you must put in preparing, researching and writing each article points to the commitment you have to your craft...thank you. I do enjoy delving into whatever you have come up with. My favorite part of the piece that you shared today is where you said to write down money you will be receiving and then write down what you spend.
I have a few thoughts regarding how to get by. Limit eating out but rather eat at home or at one of the free community dinners which are often run by a church. Join a food bank to receive free food. When you grocery shop only buy what you need to use till the next time you shop and if that is TV dinners, that's cool. I do have, as suggested by PG&E, a collection of food that has a long shelf life in case of an emergency and so if I didn't have money for food, I would be eating out of cans, pasta and jars of spaghetti sauce. If you have a cell phone, ditch your landline because it is just an extra expense. I know that a lot of people have to continue working due to their financial situation, but I would like to point out there are those that choose to continue because they have passion for what they do, those who want to make a little extra money or those who just like to be around people.
Very good advice, Sue. Right now, believe it or not, our biggest expense is hubby's season tickets to his favorite sports team. We have four seats and I'm seriously thinking of encouraging him to drop two seats next season. Too late for this season, already paid for. If you are not already, it may take a lot of discipline to get your ducks in a row in preparation for retirement. But it is well worth it.
Exactly! I knew going into the relationship what I was getting into. 😊 He took me to a game on our third date. It is really his only "vice." Neither of us smoke, drink, or spend on unnecessary things (rarely shop Amazon). So I put on my "team" shirt and root, root, root for the home team.
Ah, what we do for love. On my first date with Fred, he took me to a winery and spent over a hundred dollars on bottles of winery. That was his expensive hobby. I was never much of a drinker, but I was a good designated driver.
I live in Ohio and we are able to order things from other libraries throughout the state. Do they have that where you live? I'm grateful for it because I work in a big library system, but I live in a small town, so when I eventually retire, I'm going to order SO many books from other systems :)
I used to hate ebooks before the pandemic, but I must admit that I prefer them now. I have cards from all over the state. It's so convenient and you can read in the dark :)
Yes to CDs or treasury bonds or TIPS. Let that money make money. Some stocks that provide dividends are a good option, too if you can handle some volatility. A good dividend ETF with a low expense ratio makes it easy.
The biggest mistake we all make is assuming we won't need care. Most of us will if we live long enough and planning for that is important. Sometimes it's long-term care insurance, sometimes it's just knowing what your options are in your area, including which places take Medicaid.
One thing I tell people that they don't think about is the hidden cost of their stuff. I've seen people who are still renting a storage facility they can't afford, or have a larger place than they need because of their belongings. Keep the things that matter, donate, give away, or sell the rest, and if possible, let the process feel like getting lighter, less tethered.
Yes! Less stuff equals more freedom in so many ways.
Yes! This is great advice.
Super useful. I’m awful with money!
The things I did to put myself in a decent financial situation:
-Lived in apartments for years (people think: but rent goes up! The thing is, with our house, property taxes go up every year. And you don't have to pay for a new roof in an apartment)
-Paid off our mortgage
-Started investing in my retirement plans while I was still in my 20s, and maxed out my contributions as soon as I could.
-Didn't own a car; relied on public transit
But I also made sure to take a vacation every year. To live in the present as well as for the future, because we never know how long a future we actually have
Waiting longer to take Social Security is standard advice, but not automatically the best choice for everyone. I did the math--deeply detailed spreadsheets on what I would receive under several scenarios--taking SS at 62, 65, 66 & 4 months (my eligibility), and 70 assuming I would live to 92. Under the first 3 scenarios I didn't start "losing" money until age 82-83. I ended up taking it at 65 because I want to use the funds to travel now. Later I can downsize my house and use the proceeds for health care if needed. This is an individual choice and should be based on one's health, other sources of income, and how one chooses to live.
And P.S. making, and monitoring, a monthly budget is essential. I prepare monthly reports on our net worth, expenses, and income so we know EXACTLY where we are financially at all times. Free, or low cost, personal finance software makes this incredibly easy to do--I spend about an hour a month preparing the statements, and 3-5 hours at the end of each year reviewing trends and making adjustments. If you can get comfortable with online tools, money management is not hard! Too many women treat finances like a mysterious black box--to their own detriment. Knowledge is power. (And yes, use the library!)
your first chore is to quit your book habit on Amazon. Shocking, I know. there is a much better option: Friends of the Library. most public libraries have a separate, but allied, organization that accepts all sorts of book donations. Volunteers grade them by content and condition, and pass them along to the Friends of the Library Book Store.
That store may, or may not be hidden in the main library. it may be in a nondescript building on a side street in a neighborhood you pass by.
At Friends of the Pima County Library in Tucson, Arizona, hardbound books sell for anywhere from $3 to$10. The sales room is only open one, long weekend a month from 9am to 2pm.
Fridays are regular price. Saturday's are 25% off for ages 55+. Sunday is half price day. Monday, you buy one of their bags for $1 and fill it with every book you want; you pay $10 for the whole bag.
In 2024, The Friends of the Pima County Library provided $240,000 additional funds to the library. not only that, it's a welcoming place to volunteer!
Hi Thelma. You're right. We need to spend more time at the library and less time online. Most libraries have books for sale at super low prices as well as all the free books on the shelves waiting to be checked out.
Libraries offer other ways to save money, too. The Pima County Library offers culture passes one can check out for free admission to cultural institutions. Today I went to the Arizona-Sonora Desert Museum for free (saved $29.95)
I just moved to Tucson and am loving the library system! I'll def check out the book sale, but I must say, after so many years of buying books of Amazon, I'm really enjoying borrowing. Not only does it save money, but honestly, it's a way to just to get out of the house and have a pleasant social interaction. I love books, but really, I don't need to own many. Using the library connects us to our communities. And when I think I simply must own a book, I'm using my local independent bookseller (check out bookshop.org, which connects you to local shops, and you can also buy e-books through them).
There’s to much month, at the end of the money.
I know. It's only the 17th. Yikes.
Sue, I love your articles and this one is a wake-up call. As Ladies, we cannot count on luck or the men in our lives to support us in our older years. Reading these posts awakened me to the realization of the potential numbers of women who have given little thought to their financial well being. I worked full time for 45 years in the rural Midwest where we are not known for high salaries. It was not easy. I am married for 42 years and have one adult child. At no time during the past 45 years did I even contemplate or consider the need to rely on others financially. It was very hard to be a mom, an employee, a farmers wife, and a commuter. There were decades of stressful days with no promise of what the future might hold, but I knew it was my responsibility to contribute as best I could. I do not regret that. Please start now, right this minute, to do what you can to prepare for your financial future regardless of your age or situation. Time goes by ever so quickly and statistics tell us women usually outlive men by several years. Thank you Sue for broaching such an important issue!
Thank you, Denise. Sometimes I'm afraid all this money talk might be boring. But yes, start planning ASAP.
Not boring at all. You bring up so many interesting and important issues.
I have found online banks offer better interest rates both on CDs and savings accounts. Bankrate.com gives good info on the going rates. I think there’s messaging around money, investing, budgets etc being super complex, and not being intimidated has been key for me.
Waiting at least 24 hours to buy something and using cash or holding myself to paying off my credit card monthly are good reminders about wants vs needs.
Excellent advice, Amanda. Thank you.
Thanks for the website, Amanda! I just put a CD in my first online bank. I must admit that putting it in a bank that was not brick and mortar made me nervous, but they did have the best rate for the longest period of time.
Nice work, Tammy! It seemed weird to me as well at first, but it also helps me remember to leave it alone and let interest grow.
I owe you a huge debt of gratitude for this article, I will admit that I panicked a few months ago and applied for Social Security at just 63 because I figured getting some of my money back is better than getting none of my money back. I was subsequently approved and disappointed in the amount, so thanks to your article, I was able to submit a withdrawal of my application (didn’t know I could)! I have always intended to wait until I was 70 and have some regretted filing early so this was an opportunity to recalibrate. Much gratitude.
Wow, Beth, that's great. I didn't know you could withdraw your application. But yes, it will make a big difference if you can wait. Crazy as things are right now, I still believe Social Security will be there for us when we're ready.
Was the illustration AI-generated? The hand coming out of her back is pretty creepy! :-)
Not a fun topic but very thoughtful and helpful for those who are thinking about retiring. Wow! The time you must put in preparing, researching and writing each article points to the commitment you have to your craft...thank you. I do enjoy delving into whatever you have come up with. My favorite part of the piece that you shared today is where you said to write down money you will be receiving and then write down what you spend.
I have a few thoughts regarding how to get by. Limit eating out but rather eat at home or at one of the free community dinners which are often run by a church. Join a food bank to receive free food. When you grocery shop only buy what you need to use till the next time you shop and if that is TV dinners, that's cool. I do have, as suggested by PG&E, a collection of food that has a long shelf life in case of an emergency and so if I didn't have money for food, I would be eating out of cans, pasta and jars of spaghetti sauce. If you have a cell phone, ditch your landline because it is just an extra expense. I know that a lot of people have to continue working due to their financial situation, but I would like to point out there are those that choose to continue because they have passion for what they do, those who want to make a little extra money or those who just like to be around people.
Good suggestions, Carolyn. I am keeping my landline because cell reception is unreliable here in the boonies. But yes to all the rest.
Very good advice, Sue. Right now, believe it or not, our biggest expense is hubby's season tickets to his favorite sports team. We have four seats and I'm seriously thinking of encouraging him to drop two seats next season. Too late for this season, already paid for. If you are not already, it may take a lot of discipline to get your ducks in a row in preparation for retirement. But it is well worth it.
Those sports tickets are crazy expensive, but if it makes him happy . . . It does take discipline, but you'll be grateful later.
Exactly! I knew going into the relationship what I was getting into. 😊 He took me to a game on our third date. It is really his only "vice." Neither of us smoke, drink, or spend on unnecessary things (rarely shop Amazon). So I put on my "team" shirt and root, root, root for the home team.
Ah, what we do for love. On my first date with Fred, he took me to a winery and spent over a hundred dollars on bottles of winery. That was his expensive hobby. I was never much of a drinker, but I was a good designated driver.
Tip: use the library and get an antenna for the tv
Depends on where you live. Here, we have a tiny library and no TV reception.
I live in Ohio and we are able to order things from other libraries throughout the state. Do they have that where you live? I'm grateful for it because I work in a big library system, but I live in a small town, so when I eventually retire, I'm going to order SO many books from other systems :)
Yes, we can order books from many other libraries and also have access to the local college library. Not to mention the ebook and audiobook options.
I used to hate ebooks before the pandemic, but I must admit that I prefer them now. I have cards from all over the state. It's so convenient and you can read in the dark :)