Every senior in the United States who starts collecting a Social Security benefit has a wish list. These wishes may be to buy a new car, travel, or some other indulgence. And that’s fine, but we also have to do things with good judgment. We cannot squander our Social Security money, as it is usually much less than our salary as a worker. For that reason, it is vitally important to know what to do once we start collecting our SSA check. Each one of these checks comes from the taxes we have paid, so it is really something we have spent time on.
That’s why we can’t waste this hard-earned money. It is true that once you apply for Social Security you don’t have to work anymore. Even so, there are a number of hours you can work without paying taxes, in case you need more money. You can also earn extra income in a variety of ways. If our pension is too low, we may need to supplement Social Security in some way.
In any case, the first things we should do with our Social Security check will be of help. By laying such a foundation, we can have a better and more secure future. It is very common that the first few months we have a little more of economic control, but after a while we have to calm down and start doing things in a smart way.
Things to do with your first Social Security check
With these tips you can have a better retirement in the long run. You don’t have to be an expert economist to realize that there’s no better way to take advantage of Social Security than by being mindful of all the details.
- Create a budget. No spending money without thinking. Create a budget from the Social Security check you have. It’s the best way to know exactly how much money you can spend on everything.
- Save. Put a little money aside every month. It will come in handy in the future in case you have any extra medical expenses or your car breaks down, for example. Any home or car repairs can be a huge setback.
- Use Medicare. At age 65 or older, you can apply for Medicare. What’s more, it is usually activated automatically. But you also have to watch out for Part B, since it has a premium part. Analyze the situation well and if you don’t like what the premium part of Medicare Part B offers you, cancel it. This will save you a few dollars each month.
Any action that will make us save a few dollars from Social Security will always be welcome, so try to have everything well calculated and do not make mistakes.