When people picture retirement, they tend to picture the good stuff. A trip they’ve been putting off. More time with the grandkids. A weekday tee time.
But an ordinary Tuesday might tell you more about the retirement you’re planning for. Where will you wake up? How will you spend the afternoon? What will it cost to live that way week after week?
Picture the week you actually want
Maybe you’ll stay in your home, play golf on Tuesdays, and pick up the grandkids after school on Thursdays. Or maybe you’ll move closer to family and trade a long commute for a short walk to your favorite coffee shop.
Each version comes with its own expenses. Your commute may disappear, but trips to see family could become more frequent. You might cook more at home and spend more on hobbies. Give yourself permission to put those things in the budget. They’re part of the life you’re saving for.
Give the occasional expenses a place
A typical week won’t include replacing a water heater, paying an annual insurance premium, or taking a trip. Those expenses still need a place in the plan.
For example, if you set aside $3,600 a year for travel and $2,400 for home repairs, that’s $500 a month on top of your regular expenses. Looking at those numbers together makes it easier to see how much room you have for the rest of the things you want to do.
Ask what would change if life did
Imagine one of you wants to retire a year earlier than planned. Or a family member needs more of your time, and you start making regular trips to help. Which expenses could you adjust? Which would you want to protect? What would you pay out of pocket if you had to make an insurance claim?
You may find that some of your spending is more flexible than you thought. You may also discover a few things you’d gladly budget more for because they matter to you.
Put one ordinary week on paper
Pick a week and sketch out what you’d like it to look like in retirement. Then add the everyday bills, the activities you’re looking forward to, and the occasional expenses you’d want to save for. If you’re planning with a spouse or partner, try doing it separately first. Comparing notes can be the best part of the exercise.
Bring that sketch to your next review. We can use it to talk through how your income, savings, and insurance fit the life you want to live.
