Many people allow themselves to dive into scarcity thinking – scared of not having enough money for the future, and in turn, not allowing themselves to enjoy their savings. If this sounds like something you might do, and you are scared to even think about touching your savings, then here are some retirement tips to utilise your money properly:
Determine where your money angst comes from
More often than not, there is a logical explanation behind your fear of spending your savings. You may want to ensure there is enough left for your family one day; you may want to know you are covered for the future or are so in the habit of saving, it may just seem strange to break that habit. One of the biggest retirement tips we can give you is to identify where your spending angst comes from because you are just causing yourself unnecessary anxiety.
Once you have figured out what it is that you are worried about you can act on it so it’s no longer something that holds you back. If it’s money for your grandchildren you are worried about, open savings accounts specifically for them, if it’s your own future, then put a good chunk of the money away for down the line. Once you have done this, you can calculate what you have left, figure out a budget (that you need to stick to) and then spend a little of that hard earned (and saved) money.
Unfortunately, there are sometimes some implications to withdrawing funds from savings accounts in retirement. One way around this may be to draw from them early on and to redirect dividends into savings accounts instead of reinvesting them – depending on the type of account you have; these could become off limits at some point. As one of our top retirement tips, we highly suggest consulting with a tax advisor with this one.
Think carefully about inheritances
While it’s great to want to leave something behind for your family, it’s really important that you first make sure that you are covered. One of our top retirement tips is to allow yourself to think about you first, and if you have any left over to think about leaving it as inheritance.
Spend now to save later
Look at what needs repairing or replacing in your house and do it now. There’s no point in putting it off, because once you are in full swing of retirement, it’s going to be a lot harder to factor those costs into your retirement budget. Also, do yourself a favour, and get a legit repair team in. Cutting corners with those kinds of things will likely cost you much more further down the line. Another one of the best retirement tips right now is to make sure you have (and are happy with) your long-term health care package. It may be strange for you to have to think of these things now, but there is quite literally no better time than the present.
Allow yourself to live a little
You have spent a huge portion of your life working hard and saving. Now is the time to enjoy some of the fruits of your labour. You have the freedom to choose what to do with your time. Perhaps you have always dreamed of travelling but never had the time or money to do so. Or maybe you always wanted to learn a language but couldn't find the time.
Well, the time is now. One of our most important retirement tips, is to ensure that in retirement you allow yourself to enjoy yourself a bit. This is not to say we think you should spend your money recklessly – it still needs to be in reason. And some activities don’t cost a lot if anything at all – volunteering, having a monthly wine club with your friends, or going for leisurely walks in a nearby park. The good news is you can also take advantage of pensioner discounts. So spoil yourself a little and do it wisely to make the most of your golden years.
Would you like some more tips for retirement? One of the top retirement tips centres on investing in a retirement property abroad to enjoy your golden years in the sunshine, or to use as a rental property for an extra stream of income. Sound like a good idea? Contact us to view some of the best Calpe property for sale.