money matters

Saving for a rainy day is such a trite cliché. That is, until the day you retire and your disposable income is drastically reduced while the ordinary expenses remain the same and there is a shortfall. This signals the arrival of your rainy day for which you saved.  The anomaly of expense exceeding income can be disconcerting for those persons who did not properly plan for retirement. On the day you retire you should have no large outstanding debts like mortgage payments, car loans, or personal loan payments.  Those persons who met with, had discussions and acted upon the advice of a Financial Advisor and or Estate Planner years before, will appreciate the result at this stage, due to the fact that the monthly pension payments together with proceeds from their diversified financial portfolio adequately provide the assurance that there will be no interruption in their standard of living or the ability to enjoy life as a true retiree.

Conversely, the retiree who finds himself in the unfortunate (if only I knew then) position of not having planned appropriately, all is not lost, though he must consider ways to supplement his income. A formal meeting with a Banker or other Financial Advisor is highly recommended in the hopes of refinancing loans and lowering monthly payments to make them more manageable. Seeking employment outside the home may be necessary or turning a hobby or passion into a revenue generating activity are the choices. Playing the daily lottery is not an option. More sober options would include cooking, baking, crafting or blogging. Find your niche and create a business empire from home.   

Having less money to spend will require the retiree to meticulously prepare a budget and prioritize. One can be frugal without giving up the niceties. This however requires research. Look out for promotions and advertisement of events that are free which you would enjoy. Remember that as a senior sometimes discounts are available, ask about those. Team up with your BFF and do things without having to go out of pocket, the possibilities are endless. In my next blog I will spotlight some healthy fun activities you could consider giving  a try.