6 Steps to Take Before Retiring

 

Everyone counts down the years, days, and minutes until they can retire. But before you retire, there are six important steps you need to take to retire worry free. 

1. Define Your Retirement

When you define your retirement, you think about what it is you want to accomplish. Do you want to travel the world, the states, or stay at home and relax? Do you want to make improvement to your home, or sell your home and purchase an RV? When you know exactly what it is you want to do when you retire, you will have an easier time transitioning from work to retirement life.

2. Take Stock of Your "Assets"

This is an important step because you're taking a look at all the money you have. Look at how much you have in your savings accounts, retirement accounts, stocks and bonds, and any other savings accounts you may have. This will give you a better idea on how much money you can allocate to everything you want to do. 

3. Create a Retirement Budget

Creating a budget is important now more than ever. Since you "lose" your primary source of income and only receive a set amount each month, or every week, you need to keep track of your expenses so you don't run yourself dry. It's also important because you can allocate a certain amount each month for the goals you decided on in step one. You can also profit off a hobby you have, if you wish to make some extra cash.

4. Plan for the Unexpected

How will you pay for unexpected home emergencies? Do you have money set aside for any emergencies or serious illnesses? Setting money aside for unexpected emergencies is important at any stage of your life!

 5. Decide if you want (or need) to work

Are you a busy body who likes to work or are you more relaxed? Plan for the lifestyle you wish to live after retirement so you can be prepared. Staying home and relaxing for a while and then going back to work is also an option if you get bored staying at home.

 6. Stick to Your Plan

The most important step to take before you retire is to stick to your plan! Humans seek routine in the things we do, and retirement will change that routine. 

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