Never get used to operating with huge cash
Seniors are said to be very successful individuals since they are financially stable. But where do seniors get their money from? There are two sources that can be used to explain the reasons why seniors are said to be wealthy and financially stable. Firstly, seniors are people who are basically aged 55 and above and with this number of years, they must have worked, invested and accrued a substantive amount of wealth. Secondly, seniors who have worked for a long period are known to receive a hefty amount of pension that comes on monthly basis. But that is not what we are interested in here. Our interest here is what to do with wealth that are kept in terms of cash.
Reason why you need not to convert all your wealth into cash
Holding a huge amount of cash increased chances of being tempted to spend. Considering that seniors might have worked for a very long period of time and have been longing for that day when they will retire and spend; keeping a lot of cash might lead one astray when the urge to spend sets in. For example, if you have just retired and you have huge cash at your disposal, you might be tempted to spend without proper reasons. In order to avoid spending money without reasoning, then it is important to avoid holding or keeping a lot of cash. Keep in mind the money you save on medicare advantage plans is more money in your pocket.
Secondly, holding a huge amount of cash at your disposal is very risky in the sense that anything can happen. “Anything” in this case could mean theft, burglary and break in. It is very crucial therefore to ensure that you hold a small amount in cash then keep the rest in soft cash. Soft cash could be spend as credit cards or even mobile payments. Liquid cash is very important as you will be saved from uncertainties such as theft and burglary.
Thirdly, it is very easy for seniors to manage their finances when they are in form of cash in the bank and not cash in the pocket. With that idea in mind, if you are a senior who is about to retire or have already retired, then you need to make sure that you only keep that cash which will be spend on things that require cash. It is better to utilize your debit and credit cards in order to avoid issues related to burglary and other form of loses.