Saving for Retirement

By: Miodrag Trajkovic

Trying to figure out how much money you need to save for your retirement can be difficult. It might even tax your budget to save much right now. Are you worried you are not saving enough or that you are saving too much and it is hurting your lifestyle in the present?

One way to see how well your retirement budget stacks up is to give it a try. Make up a budget based on your retirement savings and simulate being retired and stick to the budget for a week or a month. Be sure to include all your expenses and make sure you are able to pay your utility bills, eat well, and still have plenty of money left over to spend on entertainment and incidentals.

You can find budget and inflation calculators online to help you adjust your expenses. By sticking to this budget you will be able so get a feel for what life will be like living at that level. Stop and consider how your future budget would handle an emergency expense. Suppose you had to replace a water heater or buy new tires. Could your budget handle it?

While living your pretend retirement, it is also a good time to think about the type of activities you will be undertaking. Will you travel? Will you do volunteer work? How will you keep yourself busy and occupied? Will your choice of activities cause you additional expense?

It may sound silly to do a simulated retirement, but you just might be surprised at what you learn. And when it comes to your financial future, you can't do too much to make sure that you and your spouse will be well taken care of.

You can never start planning your retirement too early no matter what your age. Even if you just save a little, your savings will grow over time. If you stop and consider what your goals will be during retirement, it will give you an idea of the amount of money you need to set as a goal to save. Don't make the mistake of thinking you will sit in a rocking chair and not have very high expenses. Since you won't be working, you will have more time to travel and do the things you never had time for. Today's seniors are living longer and are healthier and more active than ever. You should plan your budget expecting to live a long and active retirement.

Retirement
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