Create a Spending Plan

Create a Spending Plan — Manage Expenses to Find Balance Between Your Money and Your Lifestyle

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Create a Spending Plan — Manage Expenses to Find Balance Between Your Money and Your Lifestyle

Envision your retirement lifestyle  - then plan for it financially. Instead of using the term “budget,” which often creates a mental barrier because it sounds restrictive or difficult, let’s discuss your “spending plan” for your retirement. We’ll focus on managing expenses and finding a balance between the money you have and the lifestyle you want. Rather than confine you, a spending plan can allow you to spend money on the things you really want.

Rather than restricting you, a spending plan can allow you to spend money on the things you really want.

Fixed versus variable expenses

When creating a spending plan, you’ll want to consider your fixed and variable expenses now and what you estimate they’ll be in retirement. Your fixed expenses will include your mortgage or rental payment, weekly groceries and any other consistent payments you make. These will be easier to plan for than the variable ones. Here, you’ll have to be creative. Will you be traveling, taking your grandchildren to baseball games, or picking up new hobbies when you retire? Think about the activities you do now, how much they cost and whether that cost will increase when you have more time to do them.

Converting your pre-retirement budget to a retirement spending plan

If you already have a spending plan, you may just need to tweak it. Look at your expenses and estimate which items may go up and which may go down. Some may go away completely, like employment-related expenses. Other expenses may need to be added, like health insurance if you’ll no longer be covered through your employer. Detail your retirement income sources such as Social Security, retirement accounts and pensions, as well as your expenses, using our budgeting worksheet.

Plan with us

Take the time to create a realistic spending plan and you’ll feel in control of your life. It will allow you to get creative and enjoy this new phase with confidence in your ability to cover expenses for the long haul.

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