2024 Cost of Living Adjustment: See Ways to Prepare for Upcoming Changes in Social Security!

After receiving an 8.7% COLA in 2023, it is anticipated that the 2024 cost of living adjustment will be reduced by more than 50%. In this article, read and find out ways to prepare for the upcoming changes in Social Security!

2024 Cost of Living Adjustment for Social Security [Photo: SILive.com]

Cut Daily Expenses

According to Donohoe, cutting the daily expenses will help prepare for changes in the 2024 cost of living adjustment and prolong the Social Security benefits more. This suggests that an individual must see which expenses in their budget have the most impact to be able to make appropriate cuts.

To prepare for the changes in the 2024 cost of living adjustment, it is advised that an individual downsize their house or make do without a second vehicle to significantly decrease their living expenses. Nonetheless, there are still smaller cuts that could be made such as shopping at a thrift store, buying secondhand items, paying attention to utility usage, and opting for cheaper insurance plans.

READ ALSO: Anticipating The Social Security’s 2024 COLA: What To Expect From The Adjustment?

Keep Emergency Funds

According to Horovitz, unforeseen expenses can happen at any time and they become harder to settle when the Social Security benefits are limited due to the changes in the 2024 cost of living adjustment. This suggests that having accessible cash reserves is essential to avoid the struggle and possible debts.

Before the changes in the 2024 cost of living adjustment take place, it is advised that individuals must have at least three to six times their basic monthly expenses put aside in a high-yield savings account. Furthermore, if possible, it is more advisable if the savings are worth a full year of basic monthly expenses.

READ ALSO: Social Security’s COLA Increase: Retirees Will Get A 3% Adjustment, Less Than $54 In The Year 2024