Everyone dreams of reaching retirement and living the rest of their life with endless freedom. It’s not always that simple, though. Even if you have plenty of life savings to live on, you might struggle to figure out the best way to spend it as well as make it last.
Too many retirees either spend their money too soon or hold on to it so tightly that they never get the late-life experience they deserve. Don’t let this be you. If you’re recently retired, here’s how to make the most of your life savings.
Buy One Dream Item
You might hear that big purchases aren’t sensible, but that isn’t necessarily true. While spending a limited amount of savings on a yacht, sports car, and hot tub probably isn’t the best idea, there is nothing wrong with buying one dream item if you can afford to.
Think about that one item you’ve always dreamt of owning but could never justify the price. Whether it’s a designer handbag or a house by the sea, if it makes you happy, then it is worth it. To help justify the purchase, you can always sell something of value you already own. If you have a luxury car in the garage, for example, you could look into who can buy Rolls Royce.
Budgeting is crucial as a retiree, as you won’t have a definite salary coming in each month as you used to. You must figure out how much you need to live on each month while taking luxuries into consideration. It’s important to account for inflation, too. It’s best to speak to a financial advisor when dealing with such a high amount of money, as they will help you budget your money so that you never run out.
The chances are that the home you lived in as a working adult doesn’t suit your needs as a retiree, so why not consider moving? With your savings, you could even find a place in a more beautiful location like by the ocean. Of course, moving is a huge decision, so take your time deciding what you want out of a home in your later years.
Consider Your Health
It’s hard to enjoy your retirement with poor health, so it’s important to live a healthy lifestyle and go for regular check-ups. While your risk of certain illnesses is higher than when you were younger, by knowing what to look out for, eating well, and getting plenty of exercise, you are more likely to live a long and energetic life.
Use it to Travel
Most adults dream of traveling but can’t take the time off work. Once you’ve retired, though, you have all the time in the world to explore different countries and cultures. Where are the places you’ve always wanted to visit? How long do you want to be away? While working out how to budget your savings, take into account how much you’ll need for travel.
Investing some of your life savings is sensible; if done right, you could increase the amount exponentially. If you’ve never invested before, make sure you do plenty of research and consider talking to a financial advisor in advance.
Your priorities in old age won’t be the same as the ones you had when you were younger. While you might have been OK with a single bed in a small apartment in your twenties, as a senior who’s spent their life saving, you deserve a little extra comfort. When considering moving home and buying new furniture, make sure you take comfort into consideration. Spending a little extra money on a sofa that truly makes you feel at home isn’t a bad way to spend your cash.
Keep the Amount to Yourself
You might be tempted to let people know how much you’ve managed to save over the years. After all, it is an accomplishment! The problem with that, though, is when people hear a big number, they automatically assume that you have some to spare. Of course, this isn’t always true, especially when taking inflation rates and living costs into account. Others don’t necessarily know that, and they might try to take advantage of your large bank account. So, to avoid this, the easiest thing to do is keep how much you’ve saved to yourself.
The most important thing is to enjoy yourself. After all, you’ve spent your adult life working, so you should be able to relax and do the things you love in the latter years of your life. Whether that means traveling, living alone in a fairytale-Esque cottage, moving to a city, or taking up gardening – it doesn’t matter. What does matter is that you prioritize your own happiness, so find what makes you happy and do it.