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Budgeting for life’s needs and wants is even more important when you reach retirement. One of the ways to do this is by making a budget and understanding where you spend your money.

It‘s important to make the most of your money in retirement. One of the ways to do this is by making a budget and understanding where you spend your money.

How much income do you receive?

Figure out how much you’re ‘earning’ so that you know how much you have to spend. This is important throughout your life, but it’s especially true in retirement as your income may be more finite. Your income in retirement might come from regular payments from your super account, money from an investment, a government pension or a combination of these.

Breaking down how much you receive each week, fortnight or month will give you a better idea of how much you have to play with, and how comfortable you’ll be in meeting your expenses. 

Separate your needs and wants

What are your ‘needs’ and ‘wants’? ‘Needs’ are essential to living a healthy life, like accommodation, electricity, transport, water and food, while ‘wants’ are things you can live without, but are nice to enjoy, such as going out for dinner, seeing a movie, or splashing out on an overseas holiday.

Remember that cutting out certain ‘wants’ due to money doesn’t mean you need to stop being social. If your expenses are adding up one month, you might choose instead to head out to free (or cheap) events in your community.

Set up a budget

Once you’ve figured out your needs and wants, and found some ways to make savings on everyday items, set up a household budget. List out everything that’s a need, and how much each need costs to understand what you have available to spend on other things or save for a rainy day.

Keeping track of your spending via a budget helps you get the most out of your money, making it easier to live as comfortably as possible within your means.

Important information

This information was prepared by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life). A copy of the Product Disclosure Statement can be obtained by contacting Resolution Life. This general advice has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider the appropriateness of this information in light of your circumstances. This advice is based on our understanding of current law as at August 2021, and is based on its continuance unless stated otherwise. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. Resolution Life do not actively monitor breach of superannuation contribution caps. You should keep track of the contributions made to your account in respect of the caps applicable to you. You should obtain professional advice before acting on the information contained in this communication. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. Resolution Life is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

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