Budgeting
This isn't something many people enjoy doing, but everyone can benefit from it. Budgeting doesn't have to mean looking for ways to cut back. It can mean getting an idea of what your expenses are, so you can work out what income you'll need to meet them.
You can break expenses down into 3 broad categories:
- Essentials: food, clothing, bills, health expenses - the things you can't do without.
- Additional expenses: holidays, meals out, unforeseen expenses - the things you can't always plan for or that you simply would like.
- Savings and estate planning: putting money aside for the long term and to look after your family.
Retirees need immediate income for essentials, access to other funds for additional expenses, and capital or long-term income to look after their longer-term interests.
