How To Manage Your Money In Retirement

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There’s a lot of information out there about ways to save money and cut back your spending like:

  • going to the supermarket with a list of what you need and only buying stuff on that list, or
  • only buying clothes that will go with at least two or three other items in your wardrobe, or
  • swap catching up with friends at that expensive restaurant or bar with something else like a fun picnic.
  • Sharing one care between a retired couple.

This post is going to be a little different.

It’s not that those other money saving tips aren’t good, it’s just not going to be the theme of this post.

Instead we want to show you a simple strategy that anyone can use to help you manage your money.


A great way to manage your money is to think of your personal finances like a business. All good business manage their money very strategically and there is no reason why your personal finances should be any different.

One way to do this is to utilise what we call a “bucket strategy”.

Basically, this is where you set up different bank accounts (i.e. buckets) and you then allocate your income into the different accounts each week or month.

Watch this quick video for an example of what we mean.

The main benefit of this system is not so much the system itself, it’s the fact that it forces you to think about how you’re spending your money.

This is especially powerful for couples and we recommend couples sit down and do this exercise together.

Money problems are one of the major causes of stress and relationship breakdown in today’s world. So having a system like this that couples can work on together helps ensure that you’re working as a team and both on the same page.

Free Retirement Consultation - 550x100Part-Time Work in Retirement.

If health permits, there are also substantial benefits (both financially and personally) to working one or two days in retirement.

There’s a growing body of research that suggests the extra money is not the only benefit. Working one or two days can also help provide a more balanced lifestyle in retirement, giving your life more meaning and purpose.

This topic is really beyond the scope of this article, but we are seeing more and more of our retiree clients working part time (around two days a week) and most of them say they love it.

Two days doesn’t make it feel like a burden, especially if you find work in a field that is personally rewarding.

An example that comes to mind is a client of mine who is a personal carer. At the time of writing this she was in her mid 70’s and still working about 15 hours per week providing care for people less fortunate that herself.

Her patients were usually elderly people who still lived at home but just needed a little supervision from time to time.

Her tasks have involved preparing a meal, help paying the bills or maybe taking someone to a doctors appointment.

She says she loves what she does and will continue doing it until she is no longer able to. Not only does it give her some very useful extra money, it provides her with a great sense of purpose and personal satisfaction.

So if health permits, why not think about it.

If you’d like our help planning for your retirement, you can arrange a free initial appointment with us where we can explore things such as:

  • Looking at ways to maximise any Centrelink pensions
  • Looking at ways to maximise your overall retirement income
  • protecting your retirement savings, and much more.

If you’d like to arrange a free initial consultation, you can do so by clicking here.

About Invest for Living

At Invest for Living our aim is to help people make better financial decisions and ultimately live a happier life. We aren't controlled by any big institutions so our goal is not to try and sell you a product. Instead we pride ourselves on providing financial advice that makes sense and is easy to understand. It's not always the sexiest approach but in our 30 plus years of experience, financial strategies that have stood the test of time always work out best.
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