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Budget Your Money For Your Retirement Living

Budget Your Money For Your Retirement LivingBudget your money for retirement

Do you budget your money for your retirement living?  Have you checked for feedback?  Most retirees reach the retirement living time in their lives with the money management practices used for their lifetime.

A budget can provide feedback on how this will run during retirement.

Even in retirement, most retirees realize the necessity of having some idea of how much money you have to spend during retirement.  Knowing how much money you need to live and pay bills, and how much you can spend for fun is important.

This knowledge can give a guideline if you or your spouse get sudden ideas of grandeur.

Sure if you can afford to spend some of your savings doing something that is more expensive or is indulgent and want to,  then you should do so.  However, contentiously spending more than you realized can soon push the limits of what can be handled comfortably. 

Another word for budgeting is Planning. 

Planning a budget for your money for your retirement living

A budget also works well to help you be comfortable with how your retirement savings and income are spent.  Many retirees live frugally even when there is no need.  Having a stringy heart can be a miserable way to live.

These choices are usually made during your working years, sometimes by necessity and just continue into retirement because it is comfortable to you.  If you do not consider yourself either frugal or wasteful with your lifestyle you are fortunate to be one of the retirees to be comfortable with the style of living you planned to live. 

Plan

Some resent the necessity to continue living anything less than whatever they consider the best that is available, even when using credit.  Some personalities who want to live above their means will find themselves miserable when they find they have spent monies on something that causes financial hardships later along the retirement journey. 

What is a budget

If you are really into mucking up a great and happy retirement living time, spend too much money for too long a time.  This could have been avoided had the retiree prepared a budget.   

If you prefer to live above what you can afford and choose to do so with the full knowledge there will be less money as you age, do it your way.  Prepare a budget so that you know how you will keep a roof over your head and food on your table when there is not much money.  

Every retiree goes into this retirement with preconceived ideas.  A budget will make it clear to you where you stand and what you can, and can’t do during your retirement.

Tool belt

Allow yourself some tools to make this wonderful happy retirement living time yours.  You use tools to do yard work.  To play golf, even to write a letter.  Why would you not use the tools you need to have a great retirement?

A budget is a powerful tool.  It does not represent living a less than a full life.  Your budget can open some doors to having a better retirement time.  Make you comfortable doing some of the things you want to do.

Even if you have substantial savings to carry you into retirement, a budget with some guidelines is a good thing.  Give yourself a thumbs up on being happy during retirement living by having a well-planned budget.

Help when neededDo you budget your money for your retirement living

A common problem in retirement times often comes as an illness.  This leaves your spouse to handle all the financial management that has been shared. Thus opening the door to taking advise from those who do not always have the same spending philosophy. 

Having a budget with guidelines will put yours and your spouses’ mind at ease while getting well.  There shouldn’t be undue concern about paying the bills.

An added benefit comes when a spouse suddenly dies and leaves a grieving widow or widower to manage on their own what had been a joint effort.  There are so many adjustments to the life of the surviving partner that adding the questions about finance is one more load that can be avoided.

So if you have not yet given yourself the freedom to enjoy your retirement living by using a budget, it is not too late. 

Get started

The process is the same for making a retirement budget as it was for making the budget when you were still working.  It sometimes is hard to start this process, but here is how many retirees come up with a budget. 

This is not a quick process to be knocked out in an hour.  Give yourself a few days to review and revamp after some thought to your situation.  I could give you a budget here, but my budget will not work for you.  You have a different idea of how life should be in retirement living. There are some basics, however, and that will get you started to thinking, listing on paper and giving thought to how this needs to work for you.

Bank Statements 

Get your last years check statements and review.  Make a list of the expenses shown there in those statements. 

  • Housing- taxes and insurance, everything related to keeping a roof over your head. 
  • Healthcare is usually the next concern.  Your monthly payments for Medigap, and all other insurance costs for the year. 
  • Transportation must not be overlooked either.  All expenses related to getting you around.
  • Food is next on the list. Eating out as well as grocery store expenses.
  • Do you have personal debt?  Like a carryover balance on a credit card?
  • Entertainment is also one to budget.  Your hobbies, and travel?

With these categories to begin, you are on your way to developing a successful budget for you.  One that fits your desired lifestyles, and what is fun for you.  Take the time to list and add up for a whole month at a time.  When you are done, you will have the different columns of how you spent money last year. 

Just add the amounts and find out what their annual totals are to have the knowledge of where your money went.  Obviously, items like Christmas gifts should be budgeted to the time of year it is spent.  

Remember

No longer concerned about getting back and forth to work or maintaining a work wardrobe, those things will no longer make the list.

Income

Now it is time to add up the amount of your income. 

All forms of income should be added here. Know how much you will be receiving annually, not just monthly.  When considered in monthly installment, none of it seems so much.  However, when reviewing totals, the items take on whole new perspectives. 

Consider this

A “for example” on this, a social security check, when received monthly, $1,500 seems an easy amount to budget.  However, $1,500 times 12 months becomes $18,000 a year. 

This amount needs to be budgeted. 

The same with your medicare deductions, they need to be considered and subtracted. 

When breaking this process down, you are beginning to get a handle on these facts. 

Know what is happening to your money.  Just because there is never any money at the end of the month is not a sign that you are poor, broke, or penniless.  Could it be that you just do not have a good budget?

Do the work. Figure out which expenses are ones you want to stay with and which are ones you can do something about.  This is your retirement living time.  Make sure it is a happy time.

Prepare a budget

Budget your money for your retirement living.

 

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