Looking forward to retirement?
Almost everyone is looking forward to retirement. After working almost all of your life, you would finally get the freedom from all the tedious and stressful work you have been keeping all these years. As your officemates throw you a fabulous farewell party, you could start sitting back and planning for much deserved vacations and trips around the globe.
Retirement could be synonymous to freedom for most people. You would not have to be tied up to any job anymore. As mentioned, the moment you spend your last day working, you could be thinking about traveling. You may also consider many other fun and leisure activities, which could be quite costly.
By this time, you could be raving because you have a huge amount of savings in your bank account. You may also start claiming from your retirement plans. Do not forget that what you have now is all you have. There is a need to make it last your lifetime, which could be 10 years, 20 years, or even 30 years more. While it is just ideal to enjoy planned vacations and shopping sprees, you still need to observe several restrictions especially when it comes to your personal finances.
Spending trend on the first few years of retirement
After the day of retirement, people normally spend more on trips and shopping sprees. You may want to take advantage of not being tied to any job anymore. Thus, travel would have to be on top of your ‘what-to-do’ list. Going to places across the country or abroad could be expensive, needless to say. Just enjoy your time and go to just about anywhere you have been dreaming to go to.
Usually, after a year or two, your desire to travel would wane. That is the time you would want to spend more time at the comfort of your home. And while you are at it, you surely would want to remodel or redecorate, if not buy a new home. This new project could logically be costly especially if there are so many things you want to do to make your home all the more homey. Your home remodeling project may get a little more than your budget.
Investing and spending money
After spending some of your savings traveling and remodeling your home, you have to focus more on wisely spending your money. You may be retired but you could still invest your money to make it earn for you. Try to make diverse investments so that your money would be spread out strategically. This would protect you from possibly losing too much in case any market or industry performs weakly.
Your retirement is also not an excuse not to be frugal. Always make your spending in check. It would be wise to stick to a modest and practical budget so you could be sure you would have money to spend the moment you need it the most. Enjoy your retirement but stay wise in your spending.
This guest post was written by Andrew Black. Andrew has been working in the debt consolidation industry for the last 3 years, specialising in debt relief solutions. Want to write a guest post? Email us at info at jayperoni dot com.