What you need to do to safeguard your budget
Each year brings new changes to governmental policies, rules, regulations, and guidelines, including those that affect your overall financial picture. Check any government website, and you’ll likely find a list of reforms.
Social Security is not immune to new rules and regulations, increases or decreases. In fact, if you depend on social security benefits in your retirement, it’s essential to know what’s coming. That way you can help safeguard your budget in 2019.
Some of the Changes coming to Social Security Benefits in 2019
While some of the changes coming to your social security benefits are positive, some may delay your retirement. However, overall, the impact shouldn’t be too severe:
- Social security checks will be 2.8% higher in 2019 – The cost-of-living increase will add a little padding to your check. However, the cost of living is higher, which will make it a much-needed boost.
- Maximum social security benefits are increasing – If you are retiring in 2019 and are a high earner, you may get more as the maximum pay increases. Make sure to read the fine print though, you’ll have to qualify with a lifetime of high earnings to get the max.
- You may be able to find a boost to your social security benefits – Not everyone takes advantage of the social security available to them. Make sure you work with people who know the “secrets” that could get you more money.
- Medicare part B is more expensive – While there are a lot of nice increases in 2019, you will also see more expenses, like the increase in monthly premiums for Medicare Part B.
- Retirement age increases – Over the past few years, the retirement age has increased. Full retirement age is based on the year of your birth, so make sure to see where you fall when trying to determine this.
While these are a few notable changes, you can find out more here.
How to budget for a fixed income in 2019
Social security benefits only stretch so far. When you aren’t in the workforce, you can’t take on extra hours, earn bonuses, or get promoted. Learning to live on a fixed income is crucial to succeeding financially, especially if you want to stay safeguarded in your retirement. Here are some steps to take to budget for a fixed income:
- Know what your rent or mortgage cap is: Your most significant expense will likely be the roof over your head. Make sure it isn’t eating up more than you can afford. If you can’t afford the upkeep, maintenance, and all the other costs of owning, consider downsizing or renting. The key is to know what you can afford and stick to it, even if it means making a change.
- List all expenses, even potential expenses: Know the full scope of what you will or may pay out each month. Budget for the year, so you can include quarterly or annual payments.
- Find places to save: Cook instead of going out to eat, rent a movie instead of going to one, stay local rather than going abroad. There are a lot of things you can do to stay within your budget, and even make room to save.
- Plan: If you want to make big purchases or go on an expensive trip, plan ahead and include the additional expense in your budget. It’s essential to know where your money goes when you are on a fixed income. Planning is the best way to stay safeguarded.
Social security is continuously evolving. Continue to stay up-to-date with changes, and adjust your budget accordingly.