Rework Your Budget
If you’ve been budgeting lately, you probably know what coming up with a solid plan entails. But expecting to stick to that same plan during retirement would be foolish since you’ll be going through a lot of life and financial changes.
For example, it’s likely you’ll pay a lot less on your mortgage, eating out, and transportation but more on healthcare as you age. Any job-related costs will also disappear. But, will all of these offset each other? You’ll only know if you start planning ahead, though it would be impossible to really predict how much you’ll spend on healthcare during retirement.
One thing is for certain. If you want a realistic retirement budget then you need to be honest with yourself. You may think you’ll eat out less since you’ll probably avoid having lunch out while you’re at work.. but with all your free time you might actually eat out more.
Only you can tell what costs will rise and fall based on your needs, so start there!
