We talk a lot about saving for retirement, but let’s shift gears and discuss what happens after you retire. How do you spend your money wisely?
Budgeting is a complicated topic, and we can’t cover everything in one blog. But in general, we’ve found that many retirees make at least one of these common spending mistakes.
Keeping the family home. Do you really want to keep a sprawling, expensive home in retirement? The time and expense of maintenance and repairs, not to mention property taxes and insurance, will impact your leisure time and your budget. In many cases it is better to sell and downsize.
Supporting adult children. We all want to help our children get established, and some help is warranted at times. But sometimes too much help is a crutch that prevents adult kids from trying a bit harder. We’re not saying you shouldn’t help from time to time, but set firm limits, and resist the urge to simply write a large check every month.
Forgetting senior discounts. Many restaurants, hotels, theaters, and other places offer discounts for those over 60 or 65. But these deals aren’t always automatic. Remember to ask for them, and you can save 5 to 20 percent off regular prices.
Everyday entertainment. Books and movie rentals can add up; have you forgotten about your local library? Some can even help you download e-books onto your tablet or smart phone, for free. Community colleges also offer free or discounted classes on fun topics like painting, baking, ceramics, and more.
Unnecessary travel expenses. Now that you’re retired, you can travel anytime you want! Skip the crowds and score huge discounts by traveling in the off season. There’s no need to pay top dollar for hotels, condos, attractions, airline tickets, and so on.
Life insurance. Don’t get us wrong; life insurance is an important purchase! But if you’re enrolled in the wrong policy for your needs, you could be paying way more in premiums than necessary. Meet with your financial professional to evaluate your situation and choose a policy that fits within your budget.
These are just some of the more common money wasters. We can discuss your own situation in more detail at our next meeting, and help you identify ways to adjust your spending to keep it within budget.
