Les Aider Wellness Private Limited

There are three aspects of personal finance that senior citizens must keep in mind. They are, how to invest, how to manage risk, and how to plan to meet expenses.

Invest Systematically

The first and most important aspect of personal finance is investing. Senior citizens must invest so that they can beat inflation.

Inflation reduces the value of your money, and so, if the return on your corpus doesn’t beat inflation, you will end up exhausting your corpus soon.

Some of the attractive options available in the market are Post Office monthly income scheme (MIS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), Public Provident Fund (PPF), Senior Citizens’ Savings Scheme (SCSS), bank fixed deposits, and debt funds by mutual fund companies, among others. If you want to take a little risk, you can also invest in hybrid funds or a very little amount in equity funds.

Manage Risks

You should keep sufficient financial cushions all the time to meet financial emergencies. Senior citizens are most prone to health risks. As such, you need to give special attention to it. You should take health insurance to meet your hospitalisation expenses. You should also consider the cashless option, history of claim processing, and an easy claim process as the basic criteria for health insurance.

At the same time, make sure to actively take part in exercise or walking. Also, spend time with friends and family, and keep yourself in a good mood.

Plan Your Expenses

To plan your expenses, divide them into two categories.

The first is your regular expenses and the other is emergency expenses.

For regular expenses, you can invest in monthly schemes. There are many schemes run by the government which provide monthly income at a good rate of interest. Even banks offer higher interest rates to senior citizens.

For emergency expenses, invest for the long term. These investments can be beyond three years. Long-term investment can be done in debt funds offered by mutual fund companies or even in bank fixed deposits. PPF is another wonderful option.

Final Word

In a nutshell, all expenses should be planned. Planning will help seniors better prepare for the future. One of the biggest problems stopping us from achieving financial freedom is unplanned expenses.

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