5 Early Signs You’ll Lose Every Penny You Have After Your Retirement

Most retirees don’t really have any idea when will their funds run out. If you’re a retiree, you knowing how to manage your retirement funds is crucial. This usually includes making a record of all the things you are planning to buy this year, possible investments, and maybe even steps you can take to increase your savings.

There’s really no tool out there that can tell you if your money is going to run out—or not. But one thing is pretty sure: if you’re not really looking at where you’re putting your money or tracking your spending, you may find yourself having to make do with less.

One way to stop that is to be responsible. Want financial freedom? Then pay attention to your money. Want something so bad you forget to stick to your monthly budget? Control yourself. Temper in that urge that forces you to splurge or indulge in impulse buys.

Otherwise, you may find that retirement isn’t all that fun and nice, especially if your financial resources are stretched so thin you don’t even have enough to pay for the rent or your electricity bills.

Here are a few early signs that can tell you if you’re a likely candidate for running out of retirement funds or not:

You Can’t Manage Your Finances Well.

Spending after your retirement is not the same as it was when you were working. But still, many spend big when they retire. Don’t forget that it’s more important to manage your finances well at this time. Spending without looking over your current savings can totally ruin your finances just at the point when you’re starting to enjoy the freedom retirement often brings.

For example, big expenses like car upgrades must definitely take a backseat, especially if you don’t have enough to spare. Focus on current necessary expenditures. Since you’re already retired, you have more time now to organize your finances. Even better, you can make plans with your family regarding fund allocation and everybody can put in their two cents’ worth.

You Don’t Plan Your Lifestyle.

It may be challenging for you to adjust your lifestyle after your retirement. There are many things you won’t be able to do once you retire. If you love to travel at least once or twice a year, then there’s no other choice but to give this up—that is, if you haven’t got the budget for this. Major splurging can be one of the causes why you’ll run out of money after your retirement.

Try to look for alternatives. Have a barbecue party with the family, catch up on movies that you didn’t get to watch before or spend quality time with your kids when they’re not in school.

You Ignore Other Important Expenses.

Ignoring your non-monthly bills can also lead you financially astray. Some credit card debts are due to big purchases—like top brand devices and home appliances. These usually aren’t part of your basic spending plan and may cause you to overspend on your budget.

To keep from getting shocking bill statements every month, know your monthly bills intimately. Divide the amount that you usually spend in a year by 12 and set that amount aside for future contingencies. You can still buy things you want so long as you know how to prioritize basic and necessary expenses.

You are Living Beyond Your Means.

People who retire have different ideas on how they’re going to spend those years. Some plan to put up a business. Some spend more time with their families—playing golf, going fishing. Most of these people have one thing in common though—they prepare for it, for whatever they want to do in their retirement.

So should you. And if you realize that you aren’t exactly living according to the standards that you’ve set for yourself, it’s time to face reality and start living within your means.

Start with the
small things. Do you have memberships at establishments you rarely use? Do you really need the things you buy? That koi pond? That fluffy, new foot mat made out of Egyptian cotton? Will the world end if you can’t eat at your favourite restaurant? There are things that you don’t really need if you look at the bigger picture. You can see big changes in your finances if you stop with all the unnecessary spending.

You Don’t Have Back-up.

Once you’ve retired, the natural next step is to find a way to add to your retirement funds. It’s best if you seek help from a financial adviser for this, someone who can help you stay on track—to monitor your savings, bonds, stocks. Someone to help you pick the best insurance plans and give you great advice on how to handle them.

Make your retirement a satisfying one. By managing your funds accordingly, you can enjoy a peaceful retirement, one that won’t leave you penniless and financially helpless.

Author’s box

Ian G. Elbanbuena is a blogger and infopreneur who writes on various topics mainly finance, self-improvement, business and marketing. At present he works on behalf of CompareHero, Malaysia’s leading comparison website. This portal helps individuals in making the best decision by comparing rates from different  finance providers.

 

 

Tags: Personal Finance, Retirement, retirement planning

Category: Retirement