As we move past the holidays and into a new year, for many of us it is a time of reflection and planning. Shouldn't part of your planning process be answering the question of how much you spent in the past year to live your life? Is it shocking?
Most people I know don't operate on a budget? They know how much they make "take home" and that number drives their spending. A few people save first and spend the rest. How do you approach your spending/saving plans?
So what happens when you retire? You aren't earning any income so how do you figure out what to spend? We see two major dynamics change in retirement that increases spending:
1) What once were expenses paid by or through the business become personal expenses
2) Free time isn't spent at no expense.
Free time in retirement can be very costly. How expensive is your bucket list?