Things are different when people enter the retirement phase and do not have a steady stream of income anymore. This is a cause of concern for most people as their expenses might increase with time. For instance, healthcare becomes more expensive as you grow older.
William Schantzsays that you can always plan more carefully to make this carefree time go by as smoothly as possible. While proper planning will not completely eliminate the risk of financial troubles, it can significantly reduce it.
Once you save up a sufficient amount of money to help you through your retirement, you need to ensure that you also use it wisely. If you are unsure how to make your retirement savings last longer, here are some tips by Schantz to help you!
Saving & Investing Your Money Post Retirement – Tips by William Schantz
Most people live on a fixed income throughout their retirement years. In such cases, it is very important for them to be smart and wise about spending their savings. If you set your priorities right in the earlier years of retirement, you will be able to maintain your standard of living later on.
Here are some tips by Schantz to help you spend your retirement savings in a better way:
“Make Sure to Record Every Dollar You Spend” – William Schantz
The key to making your retirement savings last longer is to record every expense that you make. Keep track of even the littlest expense such as takeout coffees, household items, tips at the restaurant, etc. Moreover, you also need to make sure that all your utility bills, hospital expenses, etc. are accounted for.
Once you are done for the month, make sure that all of your credit cards and bank statements are also in sync with your total expenses. Schantz says that you can make use of a finance tracking app for doing this more efficiently and effortlessly.
“Try to Come Out of the Retirement Phase” – Schantz
While a full-time job might not be an option for retirees, they can take up a side hustle. For instance, you can take a part-time job in the hospitality or retail sector. If you think you have always had a creative side, you can consider making some extra money by selling your artwork.
You can also invest some of your retirement savings into risk-free portfolios and increase the number of returns. According to Schantz, all these things will help you feel more productive while increasing your retirement savings.
Cut Down your Expenses Wherever You Can
Keep an eye out for any expenses that seem unnecessary to you. You can work on reducing them and saving some extra money. Make sure that you identify your spending habits, suggests Schantz. This will help you see where you can cut some corners to make your savings last longer.
In a Nutshell
When it comes to saving up some extra money in retirement years, people have to be extra careful. Since you do not have a steady stream of income, it is important to have good financial habits early on. For instance, you can cut down your expenses, try to get a side hustle, and keep a track of your expenses, says William Schantz. This will help you maintain your standard of living after retiring.