Expense Changes

gadgetsJanuary 3, 2003

I have a little under 11 months to go to retirement and was just wondering what type of basic expense changes I might see. Such as electricity, since I'll be at home so much more. Are there any 'surprises' I may find after retirement, whether in the plus or minus departments?

Thanks,

Shirley

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gina_in_fl

You'll use more electricity at home, but you'll offset that on your gas or whatever fees to get to work.

You'll watch more 'home improvement TV" during the week (so you don't have to watch Oprah and Judge Judy).. You'll spend more on craft projects and home improvement.

You'll think you're going to save money on dinners out by cooking your own. Meatloaf is outrageously expensive if you think about it! ... Try to find someone to share dinners with (hey.. the lonely lady down the street might be a gold mine!)

You might want to check out 'activities' that will be available to you . ... stuff you already do is cool, but what about the other hours? What is the time frame? See what you can find out. Bingo? Volunteer Causes?

Plan on no more than four lunches with your old work buddies... you're gone.

    Bookmark   January 15, 2003 at 11:15PM
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BigMama

I think that the added expense is offset by the absence of work expense as Gina says. We are not quite retired but so many of our friends are and that is what they say. Actually nearly all of them do pretty much what they please and say that they have been pleasantly surprised at their living expenses.

    Bookmark   January 16, 2003 at 1:58PM
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minnie_tx

You'd be surprised at how fast you forget the names of people you've worked with for years. I do suggest trying to keep in touch with them, if only to find out who is doing what now etc.
I agree about eating out. I'm alone and if I cook then I have stuff in the fridge or freezer forever. I go to Golden Corral a couple of times aweek for lunch which is the same as dinner most of the time, except for the price. I pay $5.40 which includes the drink and complimentay coffee. I leave $1 for a tip. They also have a lunch card which they mark each time you go. After the 5th one the next one is free and occasionaly your cash register receipt will have a toll free number to call and then your next lunch is $2 off.
I have a Refrig/freezer which has a lot of frozen dinners and things to cook in a jiffy.

My expenses for the house etc are the same as when I worked.

If you have a library near-by get started using it and you can read your newspaper and magazines free that way.
If you don't have a cell phone get one of those that you buy your time for it and carry one in your bag when you go out for emergencies if need be.
Try to plan a schedule of activity even if it is just a reminder to water the plants. Coming from high stress active job can leave you in daze for a while.
You'll love it.

    Bookmark   January 28, 2003 at 1:11PM
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gadgets

Thanks to all who replied. From what you are saying, there will be no surprises awaiting me in the cost of living.

Gina: No worry here about staying 'connected' to anyone at work, at least those that are in the same building as I am. We have one gal who retired 4 yrs ago and still pops in and out at least once a month....that will NOT be me. I don't think this gal knows she's 'gone' yet.

Minnie: Thanks for advising about the cell phone AND the type to get. I'd been wondering if I should do that and you've just confirmed that decision. Also thanks for idea of making a schedule for a while to keep myself from going into 'shock' when I no longer have such a hectic daily routine.

Shirley

    Bookmark   February 2, 2003 at 10:31AM
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minnie_tx

And another thing haha.
Don't let restless nights bother you. I'm going through a routine now where I'm awake half the night (sometimes fall asleep early and wake up in the middle of the night) and then finally get to sleep and wake up around 11:30. I just get on the computer and not worry about it.

    Bookmark   February 3, 2003 at 2:07PM
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joyfulguy

Hi gadgets/Shirley,

Some say that you'll probably need to plan on something like about 70% of the income that you had - less gas, wear and tear on car - or transit (though you may want to continue using pass). Lower clothing, cosmetics, hair costs. Gifts for colleagues' celebrations, etc. Eating out, especially if you're part of a couple, for it sure is easy to figure that, with two incomes, one should spoil one's self by eating out on Wed. Or Fri., rather than making supper at home. Especialy if Hubby isn't kitchen-friendly.

As income is usually lower, there'll be fewer dollars going to income tax.

You'll likely find that your interest in work stuff will drop off rather quickly - and former workmates may be less than enthusiastic about carrying on long-term close relationship - some jealousy over your good fortune enjoying your freedom. Different interests.

If you are in good health, have an active mind and some interesting skills, maybe choose to develop income-producing project(s) after retirement.

Some folks who thought they'd not be interested later find such things interesting - bed and breakfast, crafts, consultancy, etc. Lots of options available for many.

Use a variety of methods to contact a number of long-term and recent retirees, pick their brains about what they'd expected, whether their expectations panned out, what their experiences were , what they'd do differently - there's a thread here dealing with that subject.

Then - become a retirement consultant. Call a number of local businesses, offer your services to their staff.

Question? When should one begin to plan for their retirement?

Answer: The day they're born - every day that they wait makes the preparations more difficult.

If Grandpa/ma invests $600. at the birth of his/her first grandchild, and can get 15% rate of return on the investment, when that child attains the ripe old age of 65, that child will have a million dollars of asset.

As will 4 other grandchildren.

And over a quarter million ($290,000.00) for the sixth one.

No allowance for the erosion of income due to tax, or of value of the underlying asset due to inflation.

Good wishes for the coming days.

joyful guy/Ed

    Bookmark   February 11, 2003 at 3:57AM
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