You should spend your retirement years doing whatever you want. However, you can only do this successfully if you budget your finances. Let’s explore the common budget mistakes every boomer makes and how you can avoid them to make the most out of your retirement money.

Failure to Track Spending

Tracking your spending may feel like a waste of time if you’ve spent decades buying the same things each month. However, high costs of living have raised the price of most commodities. If you don’t take note of each expenditure, you might have a budget deficit that forces you to dig into your savings or take up more credit card debt. Expenditure tracking is a budgeting basics that you can’t afford to overlook. Keep track of every penny that goes out, then analyze your budget at the end of the month. Go through your expenses to learn your spending patterns and plan how to make each dollar last longer.

Failure to Budget for Nonessential Purchases

Spending money on nonessentials isn’t something only the youth do. According to a survey by the AARP, 85% of boomers spend at least $683 each month on nonessential purchases such as electronics, dining out, gym memberships, and vacations. Consider how much you’ve spent on birthday money, Christmas gifts, and ‘Just Because’ presents. These seemingly harmless expenditures add up and can ruin your retirement plans. Since you can’t completely eliminate these expenses, include them in your monthly budget. Set aside money for things that make you smile, whether for you or someone you cherish. Once you deplete this budget allocation, don’t make further purchases until the next month. Find ways to feel happy and fulfilled that don’t involve spending money, and your budget will thank you.