Getting ready to retire or make a lifestyle change that will lower your income?

couple elderly man old
Photo by Pixabay on

Many years ago, I “retired” at age 30 from a large corporation.  I took a big pay cut when I left to do something I would enjoy much more.  It was a challenge.

More recently, my spouse fully retired making me the “bread winner.”  This time I was better prepared for the lowered cash flow.

If you are planning to retire or take a lesser paying job, here are some things to consider:

  • Can you manage your current mortgage or rent? Or should you downsize?

You should have savings enough to pay that bill for up to 3 or more months.

  • How old is your car?  Is it in good condition?  Is there a lien?

You need a vehicle that will last 5 years or so.

  • Can you lower any utility bills?

Consider a better phone plan or cutting back on the TV/Internet package.

  • Do you have a lot of credit card debt or other loans?

Work on a pay down plan to increase your cash flow before you go.

  • Can you get rid of some discretionary expenses you may no longer need?

Stop eating out so much or quit some expensive monthly service? Little monthly clubs can add up to big bucks.

  • Do you have some savings to cushion your time of transition?  How long will you need that?

Make saving money a continuing part of your plan by transferring money to a savings account on a monthly basis.

  • Is your personal paperwork up to date?  Do you need to get some legal advice for a Will or other documents?

Cleaning up your home office and getting business matters up to date will do a lot to alleviate stress later.

  • Does your plan include fun?

Having less income should not mean giving up all activity, but you may find enjoyment in doing things that cost less.  When I was a child, my parents did not have a lot of money.  Mom would pack a picnic lunch and take us to a museum.  We had great times with little expense.  A walk in a park, learning a new hobby, having friends to dinner are great ways to have fun inexpensively. You could also give up the book club fees and go to the library instead.  Libraries today have more than just free reading, they have free internet too.

  • Do you need help with your plan?

Contact me for a plan customized to meet your needs.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s