What to Do if You Are Running Out of Money in Retirement

running out of money

Everyone looks forward to the day that they can retire: that point in your life where you can look back at your work history, give it a kind nod, and smile as you walk off into the sunset.

However, some people find out that retirement consists of a lot more penny pinching and budget watching than before.

If you’ve found yourself in a circumstance where you’ve retired and are running out of money, it may seem as if all hope is lost.

Fortunately, there are steps you can take. Here are several ways you can start to get your retirement money back on the right track.

Cut the Fat from Your Budget

Whenever you find yourself tight for cash, the first thing you should do is take a hard look at your budget and compare it to your monthly expenses.

Odds are, they aren’t exactly seeing eye-to-eye, which is why you’ve been finding yourself in the red lately.

Getting yourself back in a comfortable position with your budget may be as simple as cutting out the fat, or unnecessary expenses, from your monthly expenditures.

This means that you may have to go without things such as your shopping memberships, unlimited cell phone data plan, and video streaming service subscription, at least until you get back into a good place.

There are always cheaper alternatives to your current situation, even when it seems like there aren’t any.

For example, if you’re noticing that you spend a lot of money on gas for your car, start walking or biking to any locations within a few miles of you if you are able. You’ll notice your gas bill start to fall significantly month-to-month. 

If you can find ways to cut your monthly expenses by around $300-$400, you’ll be saving around $3,600-$4,800 per year. That adds up to as much as $24,000 in savings every 5 years of your retirement… wow!

Adjust Your Plan of Attack

Everyone has a fairy-tale visualization of how retirement is going to work out for them. Most people imagine themselves on a porch overlooking the sunset that’s going down behind the ocean.

The realization is that you’re going to hit a few obstacles during your retirement, just like any other phase of life. There will be unforeseen expenses, financial delays, and family events that take priority over the surfboard you promised yourself once you retired.

Because of that, you may find yourself needing to adjust your plan of action either leading up to or during retirement.

If you’re still in the process of retiring, it’s not too late to work a bit longer before you officially announce retirement. If you’re already in retirement, find a part-time job that will give you some extra cash and help you get out of the house a bit.

Look to see if you can possibly delay your social security from kicking in too quickly.

Maybe the house is draining your money. If so, it probably makes more sense to downsize a bit to a house, condo, or apartment that can help take the financial burden off of your shoulders.

If you’re deadset on keeping the current house but acknowledge that it is the primary reason you’re struggling, look into finding a roommate. There are always family and friends that could use a change of scenery.

Find Ways of Earning Passive Income

One of the biggest concerns among retirees that find themselves in a financial crisis is not knowing how they’ll go about making more money if the need arises.

Maybe you’re not in a condition where you can operate the duties of a part-time job. Perhaps you feel that your monthly expenses are already down to their bare minimum and are still causing you to be strapped for cash.

Whatever the case, there are ways to earn passive income and get yourself back on track.

Do you have a long history in a particular career field or having experience in a certain aspect of life that other people would find valuable? Write an ebook and gain access to a revenue stream that will keep growing as you push it out to the masses.

If you enjoy the thought of spending money to make money, there are several avenues such as index funds, real estate, and buying high dividend stocks that can help you gain more money with the time and resources.

Even if you choose not to explore any of these options, hopefully, this step shows you that there are always ways to get more money regardless of your situation.

Try selling off a few of the items you have around the house that you don’t think you need any more and see how much you can get for them.

Start a side hustle that has to do with your hobbies or former career in which you have expertise in. It’s all valuable, which means you can get compensated for it!

Running Out of Money: Time to Act Now!

If you find yourself currently strapped for cash or running out of money, then there’s no time to waste.

Consider finding yourself a wealth management service that can point you in the right direction and get you back into financial peace.

Be sure to read this article on the 7 reasons you need a financial advisor. This will give you more insight into how an advisor can help you redirect the ship.

For more inquiries, please reach out by phone at 920-988-2050 and find the right financial advisor for you!

This educational third-party material is being provided by Luke Will Director of Investments as a courtesy.

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.  Links to external sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Navigation Wealth Management is not an affiliate or subsidiary of PAS or Guardian. Navigation Wealth Management is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. 2019-88625 Exp. 10/21

Luke E. J. Will

Luke E. J. Will was born and raised on a farm in Watertown, WI. His values and ideals were shaped by his hardworking family and are embedded into the relationships he builds with his clients. Luke has built Navigation Wealth Management with Kurt Zipp to deliver the “Navigation Way” of financial planning and asset management to his clients from all walks of life. The “Navigation Way” is built upon Trust, honest conversations, and understanding his clients financial goals.Luke attended the Wisconsin School of Business at the University of Wisconsin-Madison, where he earned his Bachelor’s degree in Finance, Investments & Banking.His favorite hobbies are hunting and fishing with family and friends. He is loves spending time outdoors including snowboarding, skiing, kayaking, and camping while spending any extra hours with his family, watching all the sports teams in Wisconsin play. Traveling, music concerts, and reading are few other interests.