Getting Ready to Live on a Fixed Income Budget

December 18, 2019 • Fenny Peiffer

Keeping Track of Medication

Thinking of retirement may be giving you a soft glow. The thought of so much freedom to do what you like, when you want to can be bliss. But, wait, all this also comes with a few conditions. For example, you will not be getting whatever salary you would be drawing right now. This means you will be living on your retirement funds. Living on a fixed income can be challenging if you don’t plan well. However, with effort and a few changes, living on a fixed income may not be so difficult.

Consider your Lifestyle after Retirement – What type of life do you wish to live after retirement? Do you wish to travel, purchase an RV? What about the expenses you have now? Are you paying off a mortgage, insurance, utilities, etc.?

Consider Practical Matters – Somewhere along the way, you may need expensive healthcare. Are you covered for these expenses? Do you have enough saved for such expensive medical care?

Consider Resources to Help you Budget – It is vital that you consider budgeting your expenses right now. If you need help, you can consider various resources to guide you in this matter. For example, you can consider a Certified Financial Planner or use budget calculators online. This way, you can easily budget for your trips and other expenses.

Consider Savings Goals – Your budget plan should be one where you avoid outliving your savings. This means, your savings goals should be higher than you think so that you are prepared to spend less after retirement.

Consider Downsizing – The life you plan to live depends on the amount of savings you have. If you are interested in doing a bit of traveling after retiring, you can move to a smaller, more affordable home in an active adult community. If you wish for more activities, but cannot afford it on a budge, you can also consider over 55 communities where you are ensured of diverse activities and events.

The best way to prepare for living on a fixed income budget is to start doing it NOW. If you make it a habit to live on a budget and watch your expenses, you will have a clear idea of how to live on a fixed income when you retire.

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