Let's discuss something important: financing senior living. If you're like me, you've wondered, "How do people afford this?" It can be overwhelming, but after learning the details, I've found there are more options than you think. Let's break them down intently so you'll feel prepared, not stressed.

Start with what you have. Some use personal savings, pensions, or retirement accounts like a 401(k) or IRA. If you've been saving for years, this money is for moments like these. Others sell stocks or real estate to cover bills. The key here is to plan—know how much you need and how long your savings will last.

For example, if you have a home, you can sell it and use the money. Consider relocating to a less expensive region or downsizing into a smaller house. However, do not do anything impulsively—speak with a financial planner to avoid making mistakes.

Were you aware that specific government programs will fund some of your costs? Medicaid is a prime example. Though it won't cover everything, most states utilize Medicaid to assist in paying for assisted living fees for individuals with limited income. Then, there's Supplemental Security Income (SSI) for individuals with limited resources.

Another alternative, the Low-Income Housing Tax Credit (LIHTC), offers subsidies to assist seniors in paying for their homes. However, none of these operate on autopilot. You apply, but you have some limitations, i.e., income limits. You should check your state's requirements or seek assistance from a social worker.

If you or your spouse have served in the military, you could be eligible for extra assistance. The VA offers pensions, like the Aid and Attendance benefit, to help with the cost of care for wartime veterans and their spouses. This information isn't widely publicized, so it's worth asking, even if you find yourself in doubt.

To apply, gather discharge papers, medical records, and financial data. The application process is time-consuming, so start early.

Long-term care insurance is a safety net. It covers care when you can't do simple things like bathing or dressing. The catch: you're more likely to get approved if you're younger and healthier. Premium premiums may be too expensive if you're already in your 70s or 80s.

If you have a policy, review it to see what it covers. Some policies cover assisted living, and some cover nursing homes only.

Family can be an essential source of assistance, either in direct money or by dividing expenses. For instance, kids can split the monthly cost of caring for a parent. Some families even establish a "caregiver contract," wherein a family member is compensated for helping with housework or medical care.

Communicate expectations. Money can strain relationships, so make agreements contractual in nature to prevent misunderstandings.

If you have a house, a vacation home, or property such as art or jewellery that has value, selling them can yield a substantial amount of money. Reverse mortgages provide another alternative—these allow you to borrow against the value of your home without having to vacate. But watch out: fees and interest can accumulate, potentially leaving your heirs with less.

A few states offer tax credits on retirement income, like pensions or Social Security. Others exempt property taxes for seniors. These benefits won't cover everything, but every bit helps. Call your local tax office to discover what's available.

Most people mix and match alternatives. You could, for instance, rely on savings early on and then resort to Medicaid. Or combine a reverse mortgage with a bit of family assistance. The goal is to stretch your money as far as possible without sacrificing your lifestyle.

Community organizations and charities occasionally offer grants or low-interest loans for elderly care. The Alzheimer's Association or local Area Agencies on Aging can point you toward help. It's a long shot but one worth trying.

The least costly way to fund senior living is to plan ahead. Consult with an elder care financial planner, discuss your goals, estimate future costs, and redesign your savings plan. Even modest changes, like reducing expenses or working a few more years, will make a difference.

Feeling stuck? Here’s a simple plan:

List your assets: Savings, home equity, and retirement accounts.

Research programs: Medicaid, VA benefits, tax credits.

Talk to experts: Financial advisors, social workers, or senior living counsellors.

Compare communities: Ask about payment plans or sliding scale fees.

Remember, you’re not alone. Millions of families navigate this every year, and with the right strategy, you can too.