Those nightly dinner dates and frequent trips to the theater are certainly going to add up. If you thought your days of budgeting and being careful with your money were over, perhaps you need to shift your thinking a little.
Here are some relevant tips for those baby boomers, empty nesters, and newly retired seniors who wish to enjoy life and have the money they need:
You might be thinking that when the kids are all out of the house and living on their own, they will not depend on you financially anymore. However, according to the National Endowment for Financial Education, 26 percent of adults who are providing for children between the ages of 18 to 39 take on additional debt to help provide for their adult kids.
A survey conducted by Rent.com in 2014 showed that over the past year, one-half of managers of approximately 250,000 properties had reported a significant increase in people who had formerly owned homes moving into apartments.
You are not the same person you were when you were 20, 30, and even five years ago, so your spending habits have likely changed significantly as well. Retirement can be tricky because now you have a set amount to spend each month and need to figure out what to do with what you have coming in.
Finances are tricky throughout your whole life and this does not change just because your kids are out of the house and you are no longer paying for as many groceries you once were, and don’t have to budget out for lunch money anymore.
Set Financial Expectations with Your Kids
You might be thinking that when the kids are all out of the house and living on their own, they will not depend on you financially anymore. However, according to the National Endowment for Financial Education, 26 percent of adults who are providing for children between the ages of 18 to 39 take on additional debt to help provide for their adult kids.
Furthermore, seven percent of these parents will put off retirement to financially support their children. Now is the time to sit down and have a realistic and open discussion with your kids about what you are willing and unwilling to do for them once they reach adulthood.
You may not have a problem providing finances for your kids but if it is not in your new and improved budget post-retirement, this is an essential conversation to have with your kids.
Downsize Your House
A survey conducted by Rent.com in 2014 showed that over the past year, one-half of managers of approximately 250,000 properties had reported a significant increase in people who had formerly owned homes moving into apartments.
While you don’t have to switch out a home for an apartment, moving to a smaller place makes sense for a lot of empty nesters who are looking to do less upkeep in their retirement years and spend a lot of time travelling, visiting grandchildren in other states, etc. townhomes and condos are extremely popular for retirees and empty nesters because they are smaller and the maintenance of the property is done for them.
An insurance agent in Charlotte can help you with the other important considerations such as homeowners or renters insurance.
Put Together a New Budget
You are not the same person you were when you were 20, 30, and even five years ago, so your spending habits have likely changed significantly as well. Retirement can be tricky because now you have a set amount to spend each month and need to figure out what to do with what you have coming in.
Unless you get a second job or find a way to supplement your income, you are living with what you’ve got. You need to set up a new budget based on what you have. Remember to budget some fun stuff in there too, because there’s no reason not to live the life you always wanted.
Finances are tricky throughout your whole life and this does not change just because your kids are out of the house and you are no longer paying for as many groceries you once were, and don’t have to budget out for lunch money anymore.
These important tips for overcoming financial challenges after 50 can help you achieve your goals and live your retirement dreams.
