When you Retire, you normally no longer have a regular paycheck and you are on a fixed income.

Therefore, it is essential that you have a budget to fit your particular needs. A budget that would allow you to live below your means should be considered. This will give you a cushion when unexpected circumstances occur that require an extra outlay of funds; particularly unexpected medical expenses. You might also need to help a family member unexpectedly, (Within Your Means).

Upon retiring, there is a tendency to want to splurge a little, maybe a lot. We rationalize this by reminding ourselves about how hard we have worked all those years. We deserve a little extra pleasure, that new car, a vacation to the islands, trip to Vegas, that special wardrobe or whatever your fancy. There is Nothing wrong with all of the above, assuming you can afford it. Even if you can afford these things now, think about how overspending could set you back in the future. The point is to make practical and common sense plans and decisions. Perhaps spend on some of the things you desire with your savings, but not all; at least not within a short period of time.

Health issues should be considered in your financial planning, and budgeting BEYOND RETIRING. Healthcare costs, in particular, could completely empty your Nest Egg and your Emergency Fund.

There are other crucial issues to consider in planning for retiring; such as housing expenses, and the usual daily living expenses. If your situation dictates, you may want to consider downsizing your home, vehicles, recreational vehicles, and other big-ticket items that you no longer use or need. Look at cutting expenses in other areas of daily living: i.e. Groceries, Transportation, Certain Utilities. Find low-cost recreational facilities in the community. If you desire a new car, consider a relatively inexpensive gas-saving vehicle. Take advantage of bargains for shopping, traveling and recreational activities. Examine every aspect of spending where you can save. It will be the small things that can add up, in spending your money. Look for more on this subject in future articles.