5 secrets for staying afloat financially after retirement
Published Thu, Oct 24, 2013 Updated Tue, Feb 16, 2021
Many people of retirement age rely on the state pension, supplemented perhaps by a modest savings account or small monthly pension. But sometimes it seems like it doesn’t stretch far enough. Using a little creativity, resources can be stretched farther than what could have been imagined. Here are five secrets to help you stay afloat financially after retirement:
1. Develop a comprehensive picture of your finances
With pencil and paper in hand (or better yet, an Excel spreadsheet), list of all your assets and liabilities. Include any and all savings, checking, and retirement accounts. Look through bills and personal cheques and make a list of monthly and yearly expenditures. Using personal cheques is a great way to keep a good record of your finances. Whether using cheques, credit cards, debit cards or cash, be sure to keep a detailed record of your spending so you so can get an idea of where you are at financially.
2. Prepare a budget
Using the information accumulated above, prepare a detailed budget showing your anticipated future income and expenses. Make sure that your income is sufficient to cover your expenses and that you are not blindsided by expenditures you failed to include.
3. Learn to economise
This can be fun if done with the right attitude and you will most likely be amazed at the results. Many recent retirees have learned how to make their food budget go farther than they ever believed they could by buying store brands, preparing delicious home-cooked meals, and re-purposing leftovers. In retirement, a “penny saved” is always superior to a “penny earned.”
4. Look for ways to supplement your income
This could involve complex financial planning if your resources are significant, or it could also be as simple as taking a part-time job or learning how to make money from a hobby you enjoy.
5. Prepare for the unexpected
No matter how much you plan, life has a way of surprising you, such as a new roof or your car breaking down. While it is impossible to plan for every possible contingency, financial experts recommend maintaining a nest egg equivalent to six months of salary.
Life is short and requires a careful balance between living each day to its fullest potential and preparing for the future. We trust that these five secrets for staying afloat financially will help you achieve that balance and allow you to enjoy your retirement for many years to come.