Budgeting is an important skill that all of us who are retired need to practice or learn. Whether you rent or live in your family home there are costs involved although they may differ based on a rental agreement and whether or not your mortgage is paid or still owing.
Life insurance may not be required but could be considered to help your family pay funeral and other final expenses. Your home will be paid in full but you may still have investments that need managing either by yourself or with a financial advisor. Make sure your WILL is up to date and completed by a reputable lawyer.
Your needs will change as should your retirement budget categories so adjust them as you age or as you see fit. Here are some suggested budget categories that you might want to consider:
When you are retired and your mortgage is gone you still have quite a bit to take care of financially so having some retirement savings is critical. If you don't have money saved you may have to sell and move into an apartment where costs are lower and fall within your retirement budget.
Discussion: What other considerations have I missed that you would like to add to this post?
Life insurance may not be required but could be considered to help your family pay funeral and other final expenses. Your home will be paid in full but you may still have investments that need managing either by yourself or with a financial advisor. Make sure your WILL is up to date and completed by a reputable lawyer.
Your needs will change as should your retirement budget categories so adjust them as you age or as you see fit. Here are some suggested budget categories that you might want to consider:
- Credit Card Debt or other debts
- Charitable Contributions
- Mortgage/Rent
- House or rental insurance
- Property Taxes, Condo Fees etc.
- Groceries
- Entertainment
- Dining out
- Memberships
- Holidays (Birthdays, Christmas, Easter etc.)
- Vehicle maintenance if you still drive (registration, sticker, plates, oil change and other repairs)
- Vehicle Insurance if you still drive
- Transportation costs which may include hired help/companion drivers or community assistance, bus passes, parking passes or taxi etc.
- Telecommunications which may include telephone, cell, internet, cable
- House maintenance which may include anything to do with maintaining your home such as needed repairs or replacement costs, grass and landscape care etc.
- Health and Beauty (any meds or personal care not covered)
- Weekly or Monthly Allowance (discretionary spending including travel)
- Utilities – Gas, Hydro, Water, Water Heater and any insurances
When you are retired and your mortgage is gone you still have quite a bit to take care of financially so having some retirement savings is critical. If you don't have money saved you may have to sell and move into an apartment where costs are lower and fall within your retirement budget.
Discussion: What other considerations have I missed that you would like to add to this post?
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