happy black couple outdoors - retirement planning and budgeting services in farmington CT
  • By Emma Andrews
  • Posted December 7, 2020

How to Make Your Spending More Manageable in Retirement

Retirement can be a wonderful time of life. No longer having a full-time job can allow you to enjoy the things you didn’t have time for before. However, your golden years can become full of stress and worry if you aren’t carefully managing your spending. You don’t want to run your retirement funds dry.

Eliminate Debt

Debt can be a very dangerous thing. For example, not paying off your credit card can lead to excessive debt. You’ll then be forced to pay interest which can seriously cut into your retirement budget. Do your best to retire without any debt. Owning your home debt-free will help ensure that you won’t lose your home if budgets get tight. The best part about being debt free is that it will allow you to spend your money on things that you love.

Source: https://www.aarp.org/money/credit-loans-debt/info-01-2012/use-retirement-for-debt.html

Relocate to a Low-Cost Area

If you’re going into retirement, chances are your life has changed quite a bit. While you may have needed a large home when you had kids around, you might enjoy life better if you were to downsize. This will allow you to turn your hard-earned home equity into cash. You can easily find a better home online. Nearly 50% of home buyers today find their home online using sites like Zillow. While you check out the homes, consider factors like property tax and utilities. Your ideal situation is to find a cheaper, smaller home that is easy to care for in an area that is cheap to live in.

Source: https://www.podium.com/article/zillow-realtor-reviews/

Practice Being Frugal

Even if you have a sizable retirement account, you probably shouldn’t start living a lavish lifestyle. Remember that possessions won’t bring you happiness. That isn’t to say you can’t have comforts or spend money. You just need to spend that money wisely. When you purchase something, ask yourself, “Do I really need this? Will I actually use it?” This can help make sure that you don’t waste your money on useless things. If you are determined to buy something, consider buying for quality rather than flare. For example, if you’re getting a newer more comfortable car, opt for one that gets good gas mileage, has a high safety rating, and is known for its durability and reliability.

Source: https://bestcompany.com/medical-alert-systems/blog/experts-share-how-to-be-frugal-with-retirement-savings

While you are planning for your retirement, remember that life is not about money. Your level of happiness and satisfaction will not be determined by your bank account. Instead, your life will be measured by how you impact and uplift those around you. In connecting with others, you will find true happiness.

We can help you to make a plan so you can be financially secure in your retirement. Contact us to get started!