You’ve almost made it. You’ve worked, planned, invested, and saved for years to get to your retirement. And now that you’re almost there, it can be so tempting to forget all your positive spending habits and finally let loose! But even in retirement, you could fall for any of these myths and put your retirement funds at risk.
The good news is that it’s never too late to get back on track.
Myth #1: I’ve made enough money that I don’t have to budget.
Regardless of how much you saved and invested, it’s still important to create a budget that reflects your retirement lifestyle. No matter how much money you made, you’re susceptible to overspending and not keeping a close eye on your savings.
Myth #2: It’s too late in the month/year/life to start budgeting.
It’s never too late to start budgeting for your retirement. A budget can help you identify trimmable expenses, keep track of your spending, and help prevent you from dipping too heavily into savings. All of which will help extend the life of your retirement funds.
Myth #3: Budgeting means I don’t get to spend money on things I want.
Saving for retirement should be a primary goal as your career nears its end. However, staying on a budget doesn’t mean eliminating spending money on dining out, travel, and entertainment. You might have to cut back in certain areas, but these expenses can still fit into your savings plan if you budget for them.
Myth #4: I can track my budget and spending in my head.
Tracking your expenditures on paper or through an app accomplishes several things. First, it provides you with an accurate snapshot of your spending totals, and more importantly, your spending habits. Identifying and eliminating negative spending trends can help you become a better money manager.
Creating a retirement budget is crucial for building a long financial runway and avoiding drastic financial setbacks as you move through your retirement years.
Which of these budgeting myths have you already fallen for without even knowing it? And what changes are you going to make to keep your retirement secured?
Let’s talk soon if you’d like to discuss together.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
4 Retirement Budgeting Myths Debunked
March 11, 2021