Simple Living in Retirement
Revisit your financial goals before retirement
Know your current expenses and pay down/off debt to reduce your expenses before you retire.
Develop a budget before retirement
Develop a budget plan, test and adjust your budget before retiring so that you have a good idea if you can live on your retirement income. Knowing that you can live on your retirement income can lead to more fun in your golden years, reduce stress and help avoid overspending.
Review your investments
Take a look at your investments and consider factors that can impact your retirement income, such as inflation, the rate of return on savings and investments, taxes, medical expenses and more. It’s important to review your finances and manage your retirement budget so that you maintain the retirement lifestyle you desire.
Downsize your living arrangements
Consider downsizing to an apartment or smaller house to eliminate mortgage payments, house and yard maintenance and to live more simply. The money that you may save on downsizing can go toward things that make you happy, such as a hobby or travel.
Consider and inexpensive hobby
A significant amount of free time comes with retirement. Consider an inexpensive hobby to keep you busy without breaking the bank. Activities such as bird-watching, gardening or pottery can help fuel a creative spark and serve as a therapeutic process. Find out what you’re passionate about and turn that into something that you can do in your free time.
Retirement is a time to enjoy the fruits of your labor, so have a plan in place before you enter this next chapter of your life. Simple living is key to extending the reach of your bank account and enjoying a stress-free retirement. For additional financial articles, check out our financial fitness resources. Questions? Call 503-588-0211.