Budget your Retirement

Retirement does not mean the end of your useful or productive life. Instead look at it from the prospective of starting a new exciting time in your life. One of the most important things you need to look at is learning how to adjust to a low income during your retirement.


If you are one of the lucky ones that have a good ‘super’ behind you, then the worst of your fears will not eventuate. The important thing about having a good superannuation is making sure it is earning as much as possible to increase your income.

Many people listen to their financial planner and decided to take risks on investing their super in high paying investments. It is a good idea to invest a portion of money in this manner. They still need to make sure they have a nest egg that is invested wisely as a back-up.  Do not invest all your money in a risky high paying investment or you could lose it all.

On the other hand many people on the pension did not have the benefits of superannuation during their earlier employment therefore they will not have as big a nest egg to live on. These need to be very careful how they invest their nest egg.


Whether you own your home or renting a property, you may find the cost is affecting the way you want to live and realize you cannot afford it now you have retired. Maybe it is time to look around for something cheaper. You could sell and buy something smaller and have money in the bank which will allow you to travel. That way you will not have to spend all your hard earned money renovating your home.

Or you could sell your home, invest the majority of the money and buy a caravan and do that travelling you have always dreamed about for so long. While traveling, you may find a little place that will not cost you an arm and a leg near the beach where you can spend time fishing and walking along the sand.

Spending the children’s inheritance

There are literally thousands of grey nomads traveling around our beautiful countryside spending the children’s inheritance. That’s right if your kids really care about you they may even suggest that you spend your money instead of leaving it for the kids to fight over.

Let’s face it, you had to work hard to earn the money to survive and buy your own home. So why not give your children the chance to learn from your experience. It is common knowledge if you have things given to you to easy most people will not appreciate it. Learning how to save money is something that all children need to learn, as money does definitely grow on trees.

Live within your means

Because you have retired does not mean sitting in a chair and procrastinating.  You can now do all those things that you only dreamed about when you were working. Of course you may not be able to dine out every night although you could take turns cooking for a friend and they could invite you to their home.  That may even be more enjoyable than dining out after all.

Things you need to pay

This is the time to look at your income and create a budget that will show you how much you have to outlay each pay. Write a list of all your expenses for the year and allow a certain amount for the unexpected expenses.

Electricity and gas
Rent or mortgage payments
Birthdays and Christmas presents
Medical and health Insurances
Vehicle Payments and repairs
House and water rates

Once you have done this divide it by twelve and you will know roughly how much you need every month. If paid fortnightly divide it by twenty four. This is only a guide, as things do and will happen out of the ordinary, so you need to allow for those too.

Now that you know how much you need make sure that you do not spend more than that. Always set aside the allotted amounts to pay these bills each month.   In that monthly for fortnightly amount you have worked out how much needs to be set aside for the electricity, gas, rates and so on so do not spend that amount.

The fun part

With your finances worked out you can now think about how you will spend your leisure time. Have you always wanted to travel, take up a craft or hobby?  You could learn something new by taking a course at your local Tafe. You may even decide to earn some extra pocket money by selling crafts you make online at auctions like eBay.

This is your time to try something new so why not have a garage sale, become a party hostess, and grow your own chemically free vegetables. Join a variety of clubs; learn to play bowls or tennis. You may like to write poetry, or your first novel, or even earn money writing articles on the internet.  You are never too old to learn something new.

So be positive; now is the time to enjoy your retirement and do the things until now you have only dreamt about.