Daily Money Management

How Do You Spend Your Money?

How we manage our money on a daily basis is an important issue as we are gracefully greying.  Determining the amount of money we need to live on depends on our age, lifestyle and retirement plans that we have set in place.

Make a habit of routinely looking at your credit card and checking account statements for an idea as to your weekly, monthly and annual living expenses. Keep track of recurring expenses and also look for unusual expenses, perhaps a trip or special occasion. Look at medical expenses to see what is normal and recurring, versus what may be a one-time medical expense, say for an unexpected procedure.  If you have not been a good record keeper, start analyzing your expenses carefully so that you can start a more careful and comprehensive plan as you move forward. If you find that keeping track of your accounting is difficult, then this may be a time to involve a trusted family member. It might also be a good time to talk to a financial advisor.

Having a handle on your needs and expenses will make it easier to plan financially for your future years. Keep in mind that no one can fully predict our future needs. We can more easily save for wonderful and happy things such as travel, however it is just as important to save for the less desireable occurances such as paying for an unforeseen health issue, a need for assisted living, or other hefty emergency costs. AARP published a great article Need Help Managing Day-to-Day Finances? which is worth a look.

There is a saying that we humans plan and god laughs. Careful planning can help as we move forward to live our lives fully. If you have a tip or would like to share your daily money management drills, please share with us and become a GG Contributing Member.