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How to budget when you are over 50?

As one approaches 50, budgeting needs to take into consideration the different requirements that one might need due to the our changing needs. I must say, I wasn’t quite ready for these changs so there was some situations that i would have preferred not to get myself into. Having said that, what is done is done so I was hoping this article can help you to be more forward looking in your budgeting as you progress towards your 50s.

Health cost is your top expenditure

I always knew health spending will go up as I aged but I never though it would spike the way it did. Health expenditure is not a linear kind of expenditure. There will be what they called ‘black swan’ events whereby you might suddenly need a large sum of cash to cover medical expenses that were not insured. I remembered when I was dignosed with cancer, there was unexpected expenses that I had to cover up. This left a hugh dent in my budget. So my advice is to set up a large portion for your retirement for such health spending and also to make sure your health insurance coverage is sufficient.

Leaving something for your loved ones

I was never a big believer in insurance (exept for medical insurance) after hearing about all these horror stories from my peers. However, as I aged, I realised that I do want to leave something behind for my loved ones. Fortunately, this now life insurance for over 50 folks so I still have options to prepare something for my wife.

What other the rest of the expenses

The rest of the expenses for me is as follows:

  • Food: 20% since I love to eat
  • Transport: 10% not so much now as I tend to stat at home unless travelling
  • Travel: 30% I love to travel while I still can so this, I will travel as much as I can
  • Repairs: 15% House is getting old so there will be a bit of repair work now and then
  • Clothing: 5% Higher if you are a female. Not so much for me : )

In summary

Be prepared for sudden health expenses coming your way. Set aside a bigger budget for it should leave you in good hands. Remember to get some life insurance for over 50 if you want to leave something behind.