Aging Your Money: The Path to Financial Security

Ever wondered how aging your money can create long-term financial stability? In this episode, we dive deep into using last month’s income to cover this month’s expenses, helping you get ahead by paying bills in advance and stocking up on essentials to build a stress-free financial buffer. You’ll learn actionable strategies, like paying utility bills months ahead, and leveraging platforms like Walmart.com, Costco, Sam’s Club, Boxed.com, and Amazon Subscribe and Save to stretch today’s dollars and cover tomorrow’s needs.

We also explore the transition from effective financial management to a fulfilling retirement—no matter your income. Discover how time, not just money, plays a crucial role in making the most of your golden years. Tune in for a roadmap that balances living well now while planning for a secure and joyful retirement.

Stay connected by subscribing, rating, and reviewing our podcast. Visit lowincomerichlife.com for additional resources and join our Facebook community for ongoing tips and inspiration. Let’s empower each other to achieve financial peace and enjoy the journey to a rich, fulfilling retirement!

Chapters

• 0:04 Financial Stability Through Aging Your Money
• 9:42 Maximizing Retirement Success Through Wealth Management

Transcript

Speaker 1: 0:04

Hey everyone, welcome back to the Low Income Rich Life Podcast, where we dive into all things personal finance, budgeting and saving for a secure future, regardless of your income. Today, I want to explore a concept that has been hugely impactful in my own financial journey. It's called aging your money, and it's one of the most powerful strategies I've discovered for creating financial stability, especially for those of us who have experienced inconsistent income. Welcome to Low Income Rich Life, the podcast that helps you prepare for a secure and fulfilling retirement, even on a limited income. I'm your host, kevin Bass. Each week, we'll explore practical tips and strategies for getting out of debt, lowering expenses, living a simpler life and finding true contentment. Whether you're nearing retirement or just starting to plan, join me as we navigate the journey to a brighter future. Let's discover together how to make the most of our golden years without breaking the bank. Before we jump in, I have some exciting news. I'm currently working on a new workbook that will walk you step-by-step through the process of aging your money. It's called Low Income Rich Life Financial Security Through Aging your Money, and I'll be giving you a sneak peek later in the episode, so stay tuned. So what does aging your money mean At its core, aging your money is about creating a buffer between when you get paid and when you pay your bills.

Speaker 1: 1:30

The idea is to stop living paycheck to paycheck by using last month's income to cover this month's expenses. But here's the thing Aging your money can happen in many more ways than just stacking cash in your bank account. You can create a buffer in your finances by paying your bills ahead of time too. For example, instead of waiting until the last minute to pay your utility bill or rent, you can start paying those bills a month or more ahead. This way, even if something unexpected happens, like an income drop or emergency expense, you've already got those essentials covered, and that's the key. Aging your money isn't just about having more cash. It's also about reducing financial stress by getting ahead of your obligations.

Speaker 1: 2:10

In my own life, one of the ways I did this was by paying fixed expenses, like our light bill, months in advance. This created a buffer where, even if I didn't have income for a few months, we weren't scrambling to figure out how to pay our bills. It's a way of stretching today's dollars to cover tomorrow's needs and, like I mentioned earlier, this doesn't always have to be done with cash sitting in the savings account. It can be done by proactively managing the timing of your expenses. One of the first things I did when my income was seasonal was start paying our fixed expenses ahead of time. When that winter income started rolling in, I began paying bills months in advance. At one point, I had our light bill paid for six months ahead and let me tell you that was a game changer no more stressing out about whether I'd have enough money to cover next month's bills.

Speaker 1: 2:58

Another key strategy I used was buying household essentials in bulk. Back in the day, I used Jetcom for this. It was a fantastic platform for buying things like toilet paper, shampoo and dish detergent in large quantities. I'd turn a spare bedroom of ours into a stockpile with six months worth of supplies. That was another form of aging my money making sure I had enough to cover our household needs for an extended period without having to dip into future income. Unfortunately, in 2016, walmart acquired Jetcom to, as they put it, boost their e-commerce presence, although I have my own thoughts on why they bought it and then eventually shut it down. But regardless, by 2020, walmart had it shut down and shifted their focus entirely to Walmartcom. So, unfortunately, jetcom isn't around anymore, but there are plenty of great alternatives for buying household items in bulk.

Speaker 1: 3:52

If you're looking for bulk buying options, like I used to do, here are some alternatives to Jetcom. Number one Walmartcom. Since Walmart absorbed Jetcom's e-commerce capabilities, you'll find many of the same options for buying bulk right on Walmart's website. Number two Costco and Sam's Club. Both offer a wide range of bulk household items at discounted prices. For a wide range of bulk household items at discounted prices, you can shop in-store or online, making it convenient to stock up on everything from cleaning supplies to pantry essentials. Just a word of caution when you go to Costco or Sam's Club, just be mindful and check the prices on things, because a lot of times people will buy things in bulk at Sam's Club when, in all actuality, it may be more expensive there than it would at just buying a regular size item at, say, your local Walmart. So just be mindful of that.

Speaker 1: 4:44

Number three Boxedcom. This is an online service that's quite similar to what Jetcom used to offer. It focuses on bulk items and delivers them straight to your door perfect for households looking to save time and money. Now, my own personal research on Boxcom was that I didn't find their prices to be super competitive compared to Walmart. Number four Amazon Subscribe and Save. Amazon's subscription service allows you to regularly receive household essentials in bulk. Often they'll give you discounts for subscribing to multiple items. So, while Jetcom is no longer an option, these platforms provide a great way to keep household costs low while continuing to age your money.

Speaker 1: 5:24

So what are the psychological benefits of aging your money? Here's where it gets even more powerful. Aging your money isn't just about dollars and cents. It has a real psychological impact. When you know that your bills are paid ahead of time and that you have a cushion, it drastically reduces your stress. You stop waking up in the middle of the night wondering if your next paycheck will be enough to cover your rent or your utility bills. It gives you mental peace and allows you to focus on bigger financial goals. But there's more to it than just peace of mind. Chronic stress can affect your health. When you're under constant stress, your body releases cortisol, a hormone that prepares you for the fight or flight response. While cortisol can be useful in the short term, chronically elevated cortisol levels can lead to serious health problems, including weight gain, particularly around the old abdominal area. Stress-related cortisol spikes can also slow your metabolism and make you crave sugary or fatty foods, which worsens the cycle. So by managing your money and reducing financial stress, you could actually be improving your physical health as well.

Speaker 1: 6:24

Now let's talk about how people, regardless of their income level, often get trapped in the paycheck to paycheck cycle. It's a vicious loop. You've got bills coming in every month and for many of us, it feels like our paycheck is gone the moment it hits the bank. Does that sound familiar? One reason for this is that unexpected expenses can hit hard when you're living on a tight budget. An unexpected car repair or medical bill can throw everything off. When you don't have a financial buffer, you end up relying on credit cards or loans, which only add more stress. Another contributing factor is that many people don't have access to financial education. They may not know how to budget, set aside money for future expenses or even prioritize their savings, and this lack of knowledge can affect people at every income level. That's why I'm so passionate about this topic. Aging your money gives you a roadmap out of this cycle. Now let's talk about how my workbook is going to help you implement this in your own life.

Speaker 1: 7:19

The workbook Low Income Rich Life Financial Security Through Aging your Money is designed to be practical and step-by-step. You don't need to be a financial expert to use it. You just need to be willing to take control of your money one payday at a time. The workbook includes a budgeting section that not only helps you track your income and expenses, but also encourages you to start aging your money gradually. Here's how it works With each payday, you'll be encouraged to pay a little extra towards next month's bills, so instead of just covering what's due this month, you'll start building a cushion for the following month. Over time, this approach will help you slowly create a buffer. You'll no longer be scrambling to pay this month's rent with this month's income. Instead, you'll be one step ahead, paying bills before they're due and using last month's income to cover today's expenses. The Paycheck Allocation Worksheets in the workbook will guide you through the process of mapping out which bills you'll pay each payday and how to prioritize any extra funds toward aging your money or building your emergency fund.

Speaker 1: 8:20

This workbook isn't just about numbers. It's about helping you create financial stability. The goal is to break the paycheck-to-paycheck cycle and give you the confidence that comes with knowing you're in control of your money. I'll be going into more detail about the workbook in a future episode, where I'll walk you through how to use the tools and strategies inside to transform your finances. So if you're feeling overwhelmed by your finances or stuck in that paycheck to paycheck rut, I encourage you to take one small step today. Look at your budget and see if there's one bill or even one expense you can pay ahead of time. Start small Maybe it's your utility bill or just a streaming subscription. That one action will start aging your money and give you a little bit of breathing room.

Speaker 1: 9:04

As always, thank you for tuning in today. Remember, this journey is about progress, not perfection. You don't have to be a financial expert to take control of your money, and if you found today's episode helpful, please share it with someone who might benefit from learning how to age their money. And don't forget to stay tuned for more updates on the workbook. Together, we can work toward financial stability one step at a time. Be sure to join us on our Facebook group at facebookcom slash groups slash lowincomerichlife, or you can go to lowincomerichlifecom slash join the group.

Speaker 1: 9:42

Thank you for joining us on this episode of Low Income Rich Life. I hope you found today's tips and strategies helpful. If you enjoyed the show, please subscribe rate and leave us a review on your favorite podcast platform. Your feedback helps us reach more listeners and improve the content we bring to you. Don't forget to visit our website at lowincomerichlifecom for additional resources, show notes and links to everything we discussed today. You can also join me on our Facebook page for more updates and retirement tips. Remember, a truly rich life is not about how you spend your money, but how you spend your time. I'm Kevin Bass, wishing you a prosperous and joyful retirement journey. Stay well and stay inspired.