Peace of Mind in Retirement Starts with a Budget

Peace of Mind in Retirement Starts with a Budget

by Julie Jason on Jan 23, 2019

No one gets a free pass from reviewing their household expenses at least annually, no matter how much or how little capital they have.  Even billionaires.  As reported by Forbes.com’s “Life Lessons from Warren Buffet,” billionaire, Buffet advised: “If you buy things you do not need, soon you will have to sell things you [do] need.” 

This subject was covered in a Jan. 11, 2019 article by Paul Sullivan of the New York Times intriguingly entitled “Deciding How to Decide: Even the Rich Need Advice on Budgeting.

Sullivan reported that “A document circulating internally among [a major brokerage firm]’s private banking and investment group, which will be released in the next couple of months, aims to help [the firm’s] rich clients’ budget like everyone else.” 

That need to budget is nothing new.

When one acquires wealth, life becomes more complex, and the need to know the household’s cash flow becomes ever more important. A recent 2018 U.S. Trust Insights on Wealth and Worth® study found that while wealth provides the freedom to do more, it also brings increased obligations, expectations and demands.

To me, that means more work is involved.  The place to start is to review what is, and then plan for what is to be.    

Reviewing expenditures against income is a basic first step toward retirement security. Peace of mind in retirement stems from knowing how much you can “afford” to spend -- or how much you “want” to spend considering other priorities such as charity.