Know Your Retirement Number
Your retirement numbers come after figuring out your retirement lifestyle. Most experts say you should have 12 times your salary socked away. Others say it’s best to have at least 80% of your preretirement income annually at the ready.
There are many such rules floating around, but the truth is that not everyone can save that much and not everyone even needs that much money. It all depends on different factors of what you plan on doing during your retirement. You don’t need an exponential travel budget if you’re not a big fan of traveling in the first place, for example!
The best thing you can do is separate your budget into categories such as food, housing, insurance, travel.
Furthermore, use the months you’ve likely spent indoors because of COVID-19 to give you a better idea of your budget. With travel restrictions and minimal time spent eating out, you’ve probably spent a lot less now than you ever have before. Is this something you’re comfortable doing during retirement?
And don’t forget, there’s always the possibility of working part-time once you retire for both the extra income and to keep active and social!
