We can’t stress enough about the need to have a realistic and practical Budget; especially after Retiring.
The world Beyond Retiring will present so many challenges and obstacles for you to tackle. A Budget is a road map; a compass if you will, to guide you in planning your financial future. It will also help you maintain financial stability. Lack of a Budget is like flying or driving in the dark with no sense of direction; a very dangerous situation for the retiree.
It’s not enough to set up a Budget; you must use it. According to recent data listed in the US Bureau Of Labor Statistics (BLS- Consumer Expenditure Survey), the older population of the US will be an influential force on the economy for many years to come. According to the US Census Bureau, the population of persons aged 65 and older will populate to 83.7 million by the year 2050.
The Survey further examined how older Americans from ages 55 and over, spend money. Considering this data, retirees falling within this age group will spend the biggest portion of their monthly budget on Housing.
There will be times when you will overspend, this is only human.
The other portions of the budget will consist of items such as Food, Utilities, Clothing, Transportation, Contributions to Charity, Church, Healthcare, Medical Deductibles, Travel, Misc. This is to point out that a Solid Budget needs to be detailed – account for all monthly income measured against all monthly expenditures; regardless of how small.
It’s also important to have a Reserve Fund built into your Budget to help avoid overspending. There will be times when you will overspend, this is only human. However, if you budget your money well, this should not cause long-term financial problems. Too much spontaneous spending over time can cause serious financial shortfalls.
Create a common sense Budget, and follow it as close as possible; Especially Beyond Retiring.