Health insurance is perhaps the most important for retirees to maintain. The unexpected expenses that insurance typically covers can easily bankrupt you. You should endeavor to keep these expenses between 10% and 20% of your income or less.įor retirees, insurance is important. It includes health, life, homeowners, and car insurance, plus any other insurance you may have. Insurance is the second-largest percentage category. Because housing takes up so much of your budget, it can quickly eat away your retirement funding. This might mean moving to a cheaper area or downsizing. If your housing expenses are higher than that, you may need to look at options for lowering that cost. However, if you are paying for housing monthly, it is important to keep that cost below 35% of your income. By the time you retire, you may have paid off your mortgage. Some own their homes outright and therefore don’t have that recurring expense outside of property taxes.įor retired people, the goal is to keep costs low without negatively impacting their standard of living. Most people who work full-time pay rent or a mortgage. Experts advise keeping housing between 25% and 35% of your income or less, if possible. Your mortgage or rental expenses make up this category. Paying for housing will usually take up the biggest portion of your income. We will also compare how they apply for working people versus retired people. In the following section, we will examine each of those 10 categories. Most people who follow this method adhere to 10 common categories.Īre you over the age of 60? Did you know that healthcare is likely your biggest unknown expense in retirement? Check out our simple 3-step Medicare guide that could save you thousands in surprise medical bills or penalties. The goal is simple: keep your expenses in each category within a certain percentage of your income. ![]() One way to do this is to think about your expenses as percentages.īudget percentages, as made popular by radio personality Dave Ramsey, help you understand where your money is going. There are many techniques for budgeting out there, but the basic idea is to balance your income and expenses. ![]() If you are retired or getting close to retirement, chances are you are familiar with budgeting.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |