People usually get very excited about their retirement years and no-work life. However, it is hard to live without a constant source of income. Things might get overwhelming for older people as they have to think about insurance, pensions, bills, healthcare, etc. One of the best ways to deal with such concerns is to manage your money well as you age.
William Schantz says that the financial situation of each person differs from the other. However, you can come up with a workable financial plan and save for future years. This becomes significantly easier when you work with your spouse as a team.
If both the partners are working, a shared financial plan to save for the future is the best way to go. If you are the only partner working, you still need to discuss your finances and retirement plan with your spouse.
Keep reading to learn how you can save money as a couple for your retirement years!
2 Brilliant Tips for Saving Money as a Couple by Schantz
Financial issues are one of the greatest causes of concern and arguments amongst couples. In order to meet the goals for retirement savings, both partners need to be on the same page. You need to make sure that your partner feels included and comfortable when you plan for your retirement and start saving.
Here are some of the best ways by William Schantz to make sure that you are saving money as a couple:
Start Frequent and Effective Communications
The easiest way to start your journey for retirement planning as a couple is to start communicating. You need to make sure that you express and discuss your expectations and concerns with your partners very openly. Disclose everything in front of each other and then see where you stand with the financials. This will help you set realistic and achievable savings goals as well, says Schantz.
No matter how uncomfortable it gets, having a clear understanding of the family’s financial standing is very important. This means that you need to talk about everything, such as:
- Spending habits
- Retirement goals
- Current/foreseeable income
- Debt/loan/credit scores, etc.
This should be the first thing you need to do with your spouse when the time for your retirement planning comes.
“Downsize Your Home/Living Facility” – Schantz
Couples usually have a very strong association with their family homes, and it is difficult to let go. However, you need to realize that moving into a smaller home will eventually save you money. This way, you can have a more comfortable and stress-free retirement period with your partner.
Additionally, a smaller home would mean that you get to cut out on your utility bills, mortgages, and owner’s insurance as well. You can always use the money that you get from downsizing to do better and more meaningful things with your partner. For instance, you can travel, sign up for independent living centers, etc.
In a Nutshell
Avoiding disputes over finances and having a stress-free retirement period is extremely important for older couples. This is easily achievable if you clearly discuss retirement goals and savings plans with your partner, explains William Schantz. Moreover, there are also several simple steps that you can take, such as downsizing your home and cutting the utility bills, etc.
The key thing to note here is that none of this will be possible without effective communication and open discussions. We hope this helped you in figuring out where you should start if you want to save money as a couple for retirement!