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3 Ways to Manage Retirement Spending

If you’re living in retirement or rapidly approaching the milestone, properly managing your money is a crucial task. Check out these three tips to learn how to keep your spending habits within your budget.

1. Audit your family spending and decide on a budget

When parents start their personal savings plan for retirement, they often forget to consider that their families may expand as their children have children. As a grandparent, the way you spend your money will change as you begin to buy gifts, contribute to a grandchild’s college savings plan, and take your children and grandchildren on family vacations or reunions. If these expenses could potentially factor into your financial future, you could get ahead of the game by planning ahead now.

 

You could start by auditing your personal finances and determining how much you spend on family each month. After you determine this figure, review your budget and decide if you can feasibly maintain it over the long term. By auditing your spending, you might see inflated areas of expense where you can make cuts. Once you determine how much you’re able to trim from your budget, you might consider opening a high-interest savings account like a money market or CD with the extra money. This way, you can grow your savings with interest, leaving you even more for retirement spending.

2. Use discounts to stretch your retirement spending

Even if retirement is years away, there are still discounts and savings programs you can use to save money. AARP discounts are available on a large selection of products and services including retail, travel, and even dining out. Plus, you’re eligible to join when you turn 50, earlier than most people plan to retire.

 

If you’re already retired, explore how discounts enable you to continue to do the things you love while saving you money. For example, if you’re a culinary connoisseur, consider trying new restaurants at lunchtime rather than dinner. Typically, the food will be less expensive and many restaurants offer lunchtime discounts for seniors. By taking advantage of discounts to save money, you’ll have more left over for additional spending. Don’t forget to deposit the money you save into an account so you don’t accidentally spend it.

3. Consider combining spending categories

If you’re looking for ways to curb your spending in retirement, you might want to look for ways to combine spending categories. For example, if you look forward to taking an annual vacation but also want to spend on your children or grandchildren, you might try planning a family vacation instead of buying gifts or taking a trip by yourself. With a little bit of planning, you can focus on making new memories with your family without overspending or sacrificing the other things you love.

More information

To learn more about how to save for retirement, Ask a Citizen at your nearest Citizens Bank Branch.

 

Disclaimer: Views expressed may not necessarily reflect those of Citizens Bank. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.