Budget Guide for Senior Living
When considering private pay senior living, budgeting is among one of the most significant things you must consider. In this budgeting guide, we’ve listed a couple of considerations to make when planning a budget for senior living expenses:
- Your monthly cost-of-living
- Family contributions
- Available Benefits
Whether you are just getting started or have done your research, this guide is here to help you understand your budget and if private pay senior living is the right choice for you.
When planning your budget, your monthly cost-of-living is an important consideration. Understanding how your current income pays for your expenses will give you an idea of your cost of living. Things like rent, food, entertainment, maintenance, utilities, care needs, and other expenses are important to know when comparing your current costs to senior living costs.
With Inspired Living communities, a majority of your expenses are already paid for. We are more than happy to sit down with you and go over your monthly expenses versus the expenses you’ll incur at our community.
Are there people in your family who are able to provide financial support and help you supplement? Family supplementation is when a loved one helps pay for the costs of senior living such as room and board fees. This consideration is unique to each family, state, and monthly income but is a common budget component when planning for a senior living budget.
Considering additional assets that are available to you can also help budget the costs of senior living. There are many examples but a few to consider are:
- Savings – the money you have put away for retirement
- Certificates of deposits or (CDs) – investing a large sum into a deposit for future use
- Stocks – money that you have invested in corporate shares through an investment portfolio
Does your life insurance policy have a cash value? This is another area to investigate to alleviate your monthly costs. You can receive money from your current life insurance policy or even cash out the value of your policy. If you have a life insurance policy, talk with your family and your financial provider before determining if this is a good option to help pay for senior living.
Available Income From Your Home
A great financial asset to consider into your budget is selling your home. In addition to selling your home, there are other important factors to help align with your plans such as timing or inheritance. If an immediate sale or final sale does not make sense for you, your home can be utilized for cash with these two commonly used options:
- Reverse Mortgage – having lenders pay out the current worth of your home each month
- Bridge Loans – using your current home to buy an additional home
Benefits Available to You
There are a number of benefits that can help you budget and minimize the cost of senior living. Inspired Living is a private pay community meaning residents must pay out of pocket. However, we do accept two types of benefits that can help alleviate the costs of senior living:
- Long-Term Care Insurance – insurance that is provided by many private insurance companies and covers a portion of assisted living
- Veterans Benefits – caregiver assistance with daily living benefits given to veterans or if their spouse was a veteran