In retirement, it's time to spent wisely you're dealing with a phase of your financial life where you have a limited amount of money and no concrete idea of how long it must last." By the time people are ready to retire, or have already retired, they should have a very current picture of what their spending is.
Retirement has many stages, and not every stage is one where you'll want to splurge, but it's important to realize that you may spend more initially, and budget accordingly.
1. Time to Face Realty
A potentially emotional decision about retirement expenses is a possible need to downsize your housing, many consumers bought too much houses or spent too much money on rental properties during the real estate boom and now may face a cash flow problem in retirement.
2. Do Expense Accounting
"Plan what you spend, spend what you plan", you need to know which cost are fixed cost, and which costs are discretionary,its the discretionary costs that you choose, that you can trim.
3. Be Present-Minded
Grandparents and parents, naturally want to lend a financial hand to their descendants, but it's not a good idea if it imperils your ability to stay financially solvent in retirement, its nice to be able to help out the grandkids but you don't want to risk running out of money.
4. Go to the Goals
You need to periodically re-evalute your pesonal spending goals, you start with your core beliefs what's important to you and then you take a look at your financial reality.
5. Drive a Bargain
After housing, cars are one of a consumer's biggest expenses, people don't think about operating cost and the total cost of owning a car including repairs insurance and maintenance, couples can save money by cutting back to one vehicle, or renting a cheap car for long trips instead of putting more wear and tear on their own seat of wheels.