Retirement is a time when you can quietly enjoy the fruits of three or four decades of hard work – provided you have saved up enough money to last. It is also a time when you have to be more careful with your money as a regular paycheck has stopped coming in.
If you are wondering how to stay on top of your finances, here are 5 money management tips for your retirement:
- Downsize your life: Now that your salary has stopped coming in, and you are living off of your savings, you have to be extra careful with how you spend your money. You can start by downsizing your life, which means cutting out all the extra expenses. For example, exchange your big fuel guzzling vehicle with a more fuel-efficient small or medium-sized car, and think about moving to a smaller home or apartment more suited to your retirement lifestyle – and your budget.
- Keep only one credit card: It is very convenient to pay for purchases with your credit card. However, the danger of using credit cards is that you will often end up spending more than your budgeted amount without even knowing it. In retirement, like all other stages of life, it is wise to keep only one credit card. Use the card to pay for online purchases or large payments that require a credit card – then pay off the balance in full every month.
- Practice frugality: Withdraw only the exact amount of money you will need every month and do not buy anything that you can do without. To curb impulse buying, reduce your shopping trips. Also, cut down the frequency of restaurant or takeout meals. If you can master the art of frugality, it will be one of best money management tips you ever learn.
- Don’t take out new loans: Retirement is not the time to acquire new debt. It is the time to preserve what you have and use it wisely and frugally so that it will last beyond your lifetime.
- Work with a good financial advisor: No matter how good you are at managing your money, you can still use sound money management tips and budgeting tips from a financial expert.
- Don’t wait to start saving: If you’re not quite ready to retire yet, now’s your time to start saving or begin saving more so you can live comfortably and debt-free in your retirement years.
For more great tips on managing and saving your money, stay tuned to our blog. If you are concerned about saving for retirement, contact Credit Counselling Services of Atlantic Canada. We’re happy to help anyone who is interested in improving their financial situation, regardless of age, gender, financial status or background. Call 1-888-753-2227 today!