When one expense goes out the front door, another comes in the window. Now that you are retired, you will very likely have more free time. Based on your activities, will your expenses go up, go down, or stay about the same?

A common retirement fear we see at Miramontes Capital is how to make your money last in retirement.

How do you think your coffee budget is going to change now that you no longer have to head into work every day? How will your habits change now that you have more time on your hands? If you are like some people, you might find that the expenses you do not have to worry about anymore have seamlessly been replaced by expenses that were never there before.

Every single person’s spending habits are as different and complex as their life. Likewise, every person’s spending habits change after retirement in surprising, personal ways. Now that your weeks are free, you might find yourself taking more trips. They might not be long trips, perhaps just day trips or overnight trips. Or you might check out more local hotspots with your spouse for lunch or dinner. Regardless, you never did these things before, but now you find that you are enjoying doing them quite often.

You still have to worry about fixed payments such as your taxes, insurance, and healthcare. Unfortunately, you cannot run away from these payments. These must be accounted for each month before you plan for anything extra you may want to do for fun. Thankfully, though, they are fixed expenses. That means they are typically going to be about the same from month-to- month, so hopefully you will not run into too many surprises with these.

Another item to consider is if you will have cash coming in during your retirement. If so, where will that be coming from and how will you use it? Budget this wisely. This could easily be used for your fixed expenses. Take out what you need to pay your monthly bills and put the rest into savings for your fun expenditures or your emergency fund for unexpected bills.

Read more on cash flow in retirement here.

If you are hoping to make your money last through your retirement, you should keep track of all your expenses. There are several apps and software out there that you can download to help you with making your money last in retirement. Keeping track of all your expenses is important because doing so gives you control and vision so you know where you’re headed. Being able to see where you are and what you might need to change in the future will help you successfully budget your expenses in retirement.

FOR MORE HELP REGARDING HOW TO MAKE YOUR MONEY LAST IN RETIREMENT, CONTACT MIRAMONTES CAPITAL.

Schedule an in office or over the phone consultation to discuss how Miramontes Capital can help you with your new beginning through retirement planning.


Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This video is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place. Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This article is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place.