Retired and enjoying the good life? Congratulations! You’ve earned this – and we want to make sure you get the most out of it. With more and more Americans enjoying longer retirements, budgeting is more important than ever. Here are some helpful tips on how to budget while retired.
The most important step to budgeting while retired is to start budgeting before you’re retired. Take an inventory of what you’re spending week-to-week and month-to-month. When you’re living on a fixed income, it’s essential to know how much is going out, because it’s harder to increase what is coming in. Now, set two budgets – one for fixed spending (essentials) and one for fun (discretionary).
Once you (hopefully) have your budgets for fixed and fun spending, here’s the easy (but challenging) part – stick with it. Keep track of what you’re spending and make it part of your routine. Check it every month at least, every week if you’re an overachiever. You could check every day, but you’re supposed to enjoy your retirement, right?
NEVER STOP SAVING:
You’re never done saving. Whether it’s for fun or unexpected expenses, a good rule of thumb is to make sure your essentials are covered 100%, while you only spend 80-90% from your discretionary budget. Save that extra 10-20% for your “just in case” expenses.
Are you still in the planning stages for retirement? You should definitely check out our How To Budget For Retirement blog. Also, be sure to speak to one of our financial advisors. Contact Us to arrange a time!