Saving Gracefully: Retirement Thoughts Shouldn’t Change Money Mindset

Are you thinking of retiring soon?

Have you thought about what you’re going to do now that you’re not working?

The hope is as you inch closer to calling it quits that you have enough money to retire comfortably, whether that’s in the form of what you’ve been able to save or your retirement plans, such as 401K or IRA.

You also have to include, for now, social security and perhaps a pension depending on the type of job you’re leaving. The most important element, of course, is making sure you stick to your budget and retirement shouldn’t change a thing about how you handle it.

The single biggest missteps retirees fall into is their propensity to treat retirement like it’s summer vacation. Smart money managers and those who have spent decades saving for retirement understand that just because you’ve stopped working and your days are free, all of a sudden doesn’t change how you budget your cash.

If anything, the smart retirees know that they don’t have a steady stream of income (unless of course, you have your 401K paid out much as you got paid at work), and if they do it’s not nearly what it was when they were punching in and punching out at the office.

So, what is the best course of action.

Well, you have to assume that you’ve built into your budget a certain amount of money dedicated to enjoying yourself and spending a little more frivolously than you were while you were working. That doesn’t mean or suggest that you should be careless with money but also not too strict, either.

The happy medium is key, and those who retire and think they have an open checkbook might find themselves struggling immensely or trying to find part-time work a few years into the retirement endeavor.

And as long as we’re talking about budgeting, why would that stop, either. Sure, you want to make sure you’ve saved enough to travel or buy that classic car you had your eye on, but you can’t overlook having a budget and staying close to your expenses, such as utilities, car payment or if you still have a little leftover on your mortgage or any refinance options you may have done.

Just because you’ve reached the end of your career doesn’t mean you should all of a sudden change what worked money-wise so well for the better part of your life. Retiring will afford you options to do other things but being lax with money shouldn’t be one of them.

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