In many ways, retirement boils down to two simple goals: You want to enjoy your time. And you don’t want to run out of money. You can work toward reaching these goals by planning, budgeting, and updating. Let’s get started on that right now.When you are retired and living on a “fixed income”, nothing is fixed about your expenses. That’s why managing and budgeting your money is so important. Now is the best time to start your retirement money management strategy. Especially if retirement is still in your future. So here we go:
Use our Voya Home Budget Calculator to enter your income and expenses. The Calculator makes this simple plus you can print out the results and even see graphs of your finances. Easy-to-follow instructions are on the page.
Fill in the amounts as accurately as possible using actual bills, paycheck stubs, statements and receipts. Average out variable costs like utilities.
When you are finished, the Calculator will total it all up. If it shows your income equals or exceeds your expenses, HOORAY!
However, if your expenses exceed your income… well, it’s time to make some decisions about your spending. If you’re married, you will definitely want to get your spouse involved at this point.
Making spending cuts may seem painful today but it’ll help you be better off tomorrow.Taking control of your expenses today can help make a difference when it comes to living comfortably and securely tomorrow. Using the Calculator, you can run “what if…” scenarios to plan for the future. For instance, if you are in your 60’s, run a “What if…” for your 70’s and one for your 80’s. Be sure to factor in inflation (the historic average is 3% or if you are working with a financial professional, they should have more accurate projections).
Imagine how, as you grow older, expense priorities could shift. Entertainment and travel costs may go down, but healthcare expenses could go up. Downsizing your housing may give you a one-time hit of extra income. Plan now on how you can keep as much of that profit as possible with appropriate tax strategies. A financial professional can help you crunch the numbers and objectively review the decisions to help keep your retirement spending in line with your income.
Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation.