By : Anita Ginsburg
For most Americans, retirement, like taxes and death, is an event from which not many can escape. However, having enough money upon which to retire solves only half of the retirement puzzle. The other half is making sure the money lasts as long as needed. The following showcases six simple areas of which one must be aware when moving from a working budget to a retirement budget.
For many, retirement means taking it easy, having some fun, and spending some money. It is time to go to the shows, plays, or entertaining friends and family. But, it costs money. So, create an entertainment budget and stick to it. That way, you don’t have to feel bad about spending money on the extras, and you can prevent yourself from overspending.
Face it, you are tired of always eating at home and then cleaning those dishes. Eating out every day may get a little old, but until it does, you will want to enjoy this new found freedom. And it takes money. Depending on your budget, make it a point to try something new each month or every couple of weeks. If you find yourself tight on money or able to spend more, adjust your budget as necessary.
Many retirees may get the notion that once retired, with their homes now paid off and children’s college tuition payments over, they no longer need to protect their earning income. While this may certainly be true, there are still other insurance needs that should never be ignored. Home insurance, car, medical, and even life insurance needs must be addressed. Check out Colling Insurance Services, Inc for insurance options that will work for you and your budget during this time.
You want to go on a cruise, African safari, or hike those mountains in far-off locals? Now is the time to start making those plans. But, it costs money, and typically, a lot of money. Many retirees fail to account for how much travel can cost. Do your homework, create a travel budget and stick to it. Consider signing up for free rewards programs to save money on hotels, flights and more.
It may be necessary to help struggling children financially, or help pay for college for grandchildren. Being altruistic is noble, but it does costs money. Create a “Help Family” budget if needed. You can even create a plan to help pay for things like college, and they pay you back without interest. That way, that don’t have to lose money in interest, and you can still get your money back.
As one gets older, the idea of wanting to give to charities may grow stronger. Again, this costs money, so create a donations budget and decide where your money will be best used. If you don’t have the funds you want to donate what you thought you could, consider donating your time and talents to make a difference in the lives of those around you.
Having a retirement budget may not be fun, but it can make all the difference between doing what you have dreamed of doing or staying home and watching T.V. There is no reason to forsake the discipline it took to retire with money. This same discipline should continue throughout retirement.