Some retirees are unable to enjoy their newfound free time because of fear of spending too much, causing them to outlive retirement savings. However, it is possible to budget your retirement funds and allocate money for fun activities. This article shares some tips for achieving that goal.
Plan Your Vacations in Advance
One of the activities that retirees often have on their bucket list is to travel the world and see all the places that they wanted to see but never had the time to. While traveling can be expensive, you can help to alleviate the costs by planning and booking reservations and trips in advance. This allows you to get big-ticket items including hotel and travel expenses much cheaper. Also, consider booking your vacations through travel agencies, because more often than not, they offer vacation packages, which can be much cheaper than if you were to book everything separately.
Vacation in Your Backyard
It is not uncommon for individuals to consider far away destinations, including foreign locations, when planning vacations. If money is an issue, you can get the same level of satisfaction and fun by vacationing locally, and discover your own local prime vacation spots that tourists who visit your area rave about. Vacationing locally allows you to save on travel expenses, and you can also save on hotel expenses by taking day-trips instead of overnighting.
An effective way to offset expenses is couponing. In the past, coupons were often uses for items at places like the grocery store, electronics store and department stores. However, coupons have been extended to a much wider range of items and can help you to significantly reduce the expenses you pay for other small and big-ticket items, including fun related activities. For example, you can find coupons for a dinner for two at high-end restaurants, discounts on skydiving and horseback riding lessons and discounts for movie tickets. In many cases, these discounts are reserved for retirees. Consider registering with deal-of-the-day sites to view the deals being advertised in your area and purchase coupons for things in which you would be interested.
Hobbies and New Businesses
If you had any hobbies that you were fond of before your retirement, retirement can allow you to spend more time enjoying those activities and even adding more to your list. Many craft stores offer free classes for hobby-related activities. You can even make it fun for your friends getting them involved in the hobby and make it a group event. Some hobbies also have the potential to become sources of income, which can be used to fund other fun activities or even help to cover some your expenses. If you are an expert in a field that allows you to continue providing your services on a consulting basis, and you enjoy providing such services, you could still continue to earn income from your expertise on your own schedule.
Guarantee Your Retiree Income
Many research studies show that the fear of outliving their retirement savings is one of the biggest concerns for retirees. If you have such a concern, it could cause you to forgo activities that you planned for your retirement and might even cause you to deprive yourself of some basic necessities. This would likely take much of the fun out of your retirement.
You can alleviate such concerns by investing in a product that provides a guaranteed and predetermined amount of annuitized income for as long as you live. Of course, this option may be suitable only if you have enough money to provide the income you need. Talk to your financial advisor about this and other options that can help to ensure that you have sufficient retirement income.
The Bottom Line
Your retirement should be the time of your life when you get to do any and everything you have always wanted to do, within reason. However, a lack of financial resources can put a damper on your plans. You can help to avoid this by effectively budgeting, effectively managing your income and paying less than market price when possible.