Plan Your Longest Vacation!

budgeting for retirement

So you are ready to plan your retirement, eh? Maybe that’s one thing always on your mind, some great ideas whirling in and out of your brain, you are hopeful and skeptical at same time, your desires are high but your bank balance doesn’t look promising. Yes, it seems to be a daunting task to plan your budgeting after retirement. Your vision of an ideal retirement life and what your savings can allow, might pull your hopes down.
To be sure you are on the right track of spending your longest vacation as per your own rules, you could take care of a few things and live your life the way you want- in your retirement! Your retirement money is your life’s earnings. It’s about how wisely you spend it. You don’t have to be a cheapskate. Instead, set your priorities right so that you can spend as much money as possible on the things that matter.

1. Health Care: This may turn out to be the biggest factor in your budgeting. Managing health expenses which may include your spouse’s too should be on the top priority. This will include your regular visits to the doctor, any medications you take. Again, your health insurance is also one factor for which you may have shell out some money annually. Never ignore your health insurance as it has some very good benefits in long term.

2. Living expenses: If you manage to spend carefully on the basics like shelter, transportation and groceries, then it can turn out an advantage to have ample money left to spend on the non-essential activities like travel, hobbies, entertainment and helping others. Try doing your own home maintenance whenever possible to save some bucks. Also, some things like shopping during sales or shopping at places where you could get cheaper but good things could help a lot. Your wealth and your lifestyle should be in sync.

3. Earn even in retirement: Your hobbies or some special task you are skilled at could help you get some income. For instance, you might have that hidden talent of painting. Go ahead, be your own boss! Paint your thoughts out. It’s never bad to have an income source where you love your work and can work at your own will.

4. Government Policies: Make sure you are well-versed with all the government policies for retired people. For example, the monthly pensions. Though it varies from country to country, if you find yourself eligible, then go ahead and try to take maximum benefit out of it.

5. Family Tree: Many people have plans of spending some quality time with their children and grandchildren, which in turn means, you need to plan for the same! Family trips, buying things for your grand-kids or helping your own children financially can be a thing you need to prioritize in your budget.

6. Budgeting: The most important aspect – contact a financial planner! There are many free websites out there which help you make a retirement budget for yourself. But it could lead to a lot of discrepancies in doing such planning. Some of your specific details cannot be accounted for in such methods. Here’s when a financial planner plays a crucial role. He/she will help you sort out your budget and also provide guidelines on where you can invest your money to get maximum returns in your retirement period.

Apart from the things listed above, make sure you spend on activities which help you keep yourself active and engaged. Like, that foreign trip you always wanted to take with your spouse or that adventure game you always wanted to try but never got the time until your retirement. It’s these extras that make for an active and rewarding retirement. With a little creativity and flexibility, you can not only cover the basics, but you can have money for the fun things, too. After all, this is your longest vacation- make sure you give your best shot to make it a memorable one!

About The Author

Thomas

A husband, father, brother, uncle and cousin to a great group. I'm an budding entrepreneur that has interest in making money that will sustain deep into retirement. At this point in my life I see no reason why I shouldn't get my piece of the pie.