3 Tips for Managing Expenses Before Retirement
As you approach a certain age, you begin to think about when you can start to slow down at work, go part time, or maybe even retire. However, when these thoughts start, many people are uncertain if they can maintain their current lifestyle during retirement. Many people also worry if they are even set up to retire as early as they want. If this is something you are worried about, we have listed our three biggest tips, to manage expenses in preparation for retirement.
Set Goals
If there is one thing that will keep you on track with your spending, it’s setting goals, both long and short term. The short term ones keep you focused, they are attainable, so you are achieving small milestones while working towards your larger, more long-term goals.
With the fulfilment of each goal people gain more and more traction. The big dreams come into focus as the short term ones propel you closer and closer to the retirement of your dreams
Create A Budget
By outlining your financial incomings and outgoings, you really get a feel for your financial position, and how long you have and how much you need to save for retirement time. The AFSA ‘Retirement Standards’ is a helpful resource to let you know what to aim for in your budget, and what is a reasonable amount to spend.
Knowing exactly how close you are to your ideal retirement figure can help ensure you don’t miss out on any of the things you have planned.
Check Your Bills
Every year, do an audit on your bills. Are you getting the best deal for your electricity and private health insurance? Is there a cheaper interest rate available for that personal loan which has been lingering in the background for three years now? Are you able to pay off your mortgage? It might even be a good time to review the types of insurances you have.
Companies often rely on people simply rolling over plans that aren’t the best deal because they haven’t done the research. Make sure to check regularly that you have the best options for you.