Prioritize essential needs, allocate medical money
First, it should be calculated based on the actual monthly pension amount. About 50-60% can be used for essential expenses such as food, electricity, water, travel and rent if any. This rate does not need to be applied rigidly but should be adjusted according to each person's circumstances.
Medical expenses also need to be separated. Elderly people often incur expenses for medical examinations, drug purchases, or periodic health check-ups. Each month, a fixed amount should be allocated to this group of expenses; if not yet used, it can be kept for later months.
In addition, even with limited income, you should still try to set aside about 5-10% for the contingency fund. A small amount of money accumulated regularly can help retirees be more proactive when unexpected events occur such as house repairs, equipment purchases, or incur health costs.
Distribute money at the beginning of the month, control small amounts
As soon as you receive your pension, you can divide the money into separate amounts for meals, bills, healthcare, and personal expenses. This method helps to easily track the remaining amount and limit overspending in the early days of the month.
You should not completely cut off expenses for yourself. A small portion can be spent on meeting friends, shopping or personal hobbies, but you need to set clear limits.
In particular, pay attention to seemingly small expenses such as coffee, eating out, or inspirational shopping. When combined for the whole month, they can become a significant amount. Keeping spending notes for a few weeks will help you recognize which items are really necessary and which ones can be reduced.
For people living on pensions, the most important principle is to ensure essential expenses first, prioritize health and always have money in reserve, then consider non-compulsory expenses. A simple but regularly maintained plan will help even people with low pensions to be more proactive with life and limit monthly shortages.
